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Charter Township of Lodi Housing Market Analysis for Proposed Single-Family Residential Subdivision Lodi Township, Michigan

Despite population growth, an announcement by a large employer of its forthcoming departure created a development impasse for Washtenaw County. At that time, Lodi Township sought Allen & Associates to assess the development potential of a single-family residential development

Not including the proposed 660 lots at the subject site, the market area of the subject site at that time had an abundant supply of single family lots/homes in active subdivisions. The supply was anticipated to increase by nearly 75% as pipeline developments were added over the next several years-this without considering the supply of existing (resale) homes on the market or of homes on large acreage parcels.

The competitive environment in the market area at that time contained 47 existing active and competitive detached single family developments with 1,698 available lots; the bulk of the existing supply (65%) was of housing priced between $225,000 and $425,000, with the $225,000-$274,999 range having the greatest concentration of supply. Future supply was 1,245 lots with 86% of the proposed lots in the $225,000 to $425,000 price range. The pricing profile of the future supply, as estimated from available data, indicated that it will have characteristics similar to the existing supply- with nearly 40% of the offerings anticipated to be

 

delivered in the $225,000$274,999 price range. In summation, the market area contained an extensive available and proposed supply of home sites offered in a wide variety of developments and price ranges but especially in the $225,000 to $425,000 price range.

The economic position of the Ann Arbor Metropolitan Statistical Area, comprised of Washtenaw County, was once a bastion of stable employment levels supported by a broad mix of industries. This had been slowly changing in recent years as recent and current non-farm employment in the region dropped to levels well below the peak experienced in 2001

Even government employment, which was historically strong based upon the local universities, was threatened by the State of Michigan's own eroding financial position; with major revenue shortfalls projected for the near term. Positive employment news was far surpassed by announced downsizing and closures.

Overall, the market area was considered to be oversupplied. Based on our the combined existing and proposed supply and our concluded demand for new construction single family housing in the market would require 7.7 years to absorb.

Allen & Associates Appraisal Group Troy

5700 Crooks Road
Suite 200
Troy, MI 48098
Phone: (248) 433-9630
Fax: (248) 433-1314



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