18 Nov ROOST shares residential market study and analysis
Study quantifies housing demand and preferences to guide future development
A comprehensive research study and analysis commissioned by the Regional Office of Sustainable Tourism (ROOST) has identified substantial market potential for both primary and secondary housing units to be constructed in Essex County over the next five years.
The study, “An Analysis of Residential Market Potential,” conducted by Zimmerman/Volk Associates, Inc., estimates that between 158 and 207 newly constructed affordable and market-rate primary homes could be leased or sold annually; with a five-year projected total of 790 to 1,035 units.
The research study provides the most comprehensive picture to date of countywide housing demand. It focuses on identifying gaps in local housing supply and determining which types of development projects, both rental and ownership, should be considered to fill demand based on potential buyer preferences and financial capacity. The report also outlines recommended unit sizes and price points, aligned with different income levels to offer the greatest impact.
It analyzed current demand for those homes, local demographic and behavioral data, historic and projected population changes, various types of housing existing within the region (e.g.: single-family homes, townhomes, and apartments), along with median salaries and financial capabilities of local residents and others hoping to purchase a home in the area.
According to the study, demand for single-family detached homes and apartment-style units appears across all of the study’s defined subregions of Essex County. These include Lake Placid and the High Peaks region, which encompasses North Elba and Keene; the Adirondack Hub region, comprising Minerva, Newcomb, North Hudson, and Schroon Lake; and the Lake Champlain region, which the study divides into northern and southern areas for analytical purposes. Lake Champlain north includes Chesterfield, Elizabethtown, Essex, Lewis, Westport, and Willsboro, while Lake Champlain south includes Crown Point, Moriah, and Ticonderoga. Demand is also present in the Whiteface region, which includes Jay and Wilmington, and in the Saranac Lake region, represented by the Town of St. Armand.
The analysis determined that a substantial portion of unmet demand comes from two demographic segments. The first segment includes households earning between 60 and 80% of area median income (AMI). These are often younger workers, those just entering the workforce, or seasonal employees seeking attainable rental housing. The second segment includes households at or above 120 percent of AMI; the area’s professional workers, including teachers, nurses, law enforcement professionals, business owners, and other mid-career workers. This group is in a position to purchase a larger home or higher-quality home, but there is nothing currently available at an appropriate price point.
According to Adam DeSantis, ROOST director of economic development and destination management, the information presented within this report is incredibly valuable for planning purposes throughout Essex County. “This study gives us a clear picture of the types of homes people both want and can afford in our region,” he said. “ With better data, our communities can develop accurate plans, support local workers, and make informed decisions about future development. Proposed, newly built units would not only attract new households to Essex County, but would also provide options for residents who might otherwise leave the county because they cannot find suitable housing.”
DeSantis explained that demand for apartment-style residences and detached single family homes is greater than local officials and community development professionals originally imagined. “The data shows that the depth of demand for housing in Essex County is significant – much greater than was expected,” he said. “We learned that the area’s professionals are both able and willing to invest in a larger residence; they are being held back simply because the supply of available homes doesn’t currently exist for them to make that move.”
The study also evaluated second-home demand as a separate component of the market. Report analysis indicates that the region has capacity for approximately 40 newly constructed homes each year; a total of approximately 200 over a five-year period. Detached, single-family homes remain the preferred type for second-home buyers, followed by condominiums and townhomes. These findings are presented independently, recognizing that primary and second-home markets serve different household groups and require different planning considerations.
DeSantis explained that the Regional Office of Sustainable Tourism supports initiatives, such as housing, that impact the lives of residents and visitors – initiatives that are far beyond tourism promotion. Undertaking research comprises a significant part of ROOST’s work within, and for, the region.
“Housing is central to the health and sustainability of our communities,” DeSantis added. “ROOST’s mission is to support a sustainable economy, economically, socially, and environmentally. Understanding our housing needs helps us support workforce stability, reduce outward migration, and attract new residents. It also reinforces the importance of investing in infrastructure so that we can create housing in a way that protects the natural resources that define our region.
The study was funded, in part, through a generous grant from Adirondack Community Fund and was sponsored by Community Bank.
The study’s findings will help inform local governments, builders, community organizations, and funders as they plan and implement housing strategies. The study will serve as a shared, region-wide dataset that relieves builders and developers from undertaking their own market study, while ensuring that all communities within Essex County are working from the same dataset. The findings also highlight where infrastructure limitations may constrain new development and how aging systems impact housing quality, economic stability, and environmental health in Adirondack communities.
According to Community Bank Vice President/Senior Retail Banking Manager Kent Backus, the housing market research study and its associated report will be incredibly helpful when lenders are assessing prospective development projects and their funding requirements. “When builders and developers are planning projects they partner with a local lender to help determine a project’s viability and underwriting requirements,” he said. “This study provides a great deal of information that lenders require including local demand and community growth potential. Lending applications require a large amount of information about the project itself, its market potential, the developer’s credit worthiness and project timeframes. This report provides a great deal of the required information, saving time and supporting many aspects of the developers’ overall plans.”
Cali Brooks, president and CEO of Adirondack Community Foundation, shared the importance of this research for its work to support community development and activity. “Adirondack Community Foundation monitors the region’s most pressing issues, and housing is always near the top of the list,” she said. “We collaborate with donors and other funders on projects that create tangible community benefits. Research is essential to our work, so we are pleased to be part of this ROOST initiative to better understand local housing needs and help shape future development.”
The full study can be found at: roostadk.com/research.
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