Riverfront-Indian Village

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					                                Family:            Senior:
Riverfront-Indian Village       Health:        -10 Health:    -10
                                Opportunity:    6 Opportunity: 4




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        The Riverfront-Indian Village market area is located in the City of Detroit, on the
southeast side along the Detroit River. Its demographic trends indicate declines in
population and household counts, but incomes in the area are expected to increase at a
faster rate than the state median. It is also typified by a family rental market with high
occupancy rates in most market segments and a senior rental market characterized by
relatively low occupancy rates. Subsidized units are in limited supply in the family
market, while nearly one-half of the senior-designated units include project-based
subsidies.

MARKET DEFINITION
  • For the purposes of this analysis, this market includes a small area on the
    southeast side of Detroit. The market is comprised of a narrow area along
    the Detroit River, south of Jefferson Avenue, between Rivard Street and
    Alter Road. The market also includes a narrow section north of Jefferson
    Avenue, bordered by Maxwell Avenue, Mack Avenue, and Fischer Avenue
    that encompasses the Detroit neighborhood known as Indian Village.




DEMOGRAPHICS
  • The population in the market area has decreased through the 1990s, and that
    trend is expected to continue through 2011. The current population of the area
    is 15,202. In 2000, 15,970 persons lived in the market area, which is a loss of
    0.36% annually since 1990. The area’s 1990 Census population was 16,549.


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    ESRI expects that the population of the market area will continue its fall through
    2011, when its population is projected to be 14,816. This change represents a
    decrease of 0.51% annually from 2006 to 2011. These trends counter statewide
    trends, which exhibit modest growth.
•   Households increased through the 1990s, but slight declines are projected for
    the future. In 2000, the household count for the market area was 7,672. The
    current ESRI estimate of the number of households in the area is 7,383. From
    1990 to 2000, a gain of 0.58% on a yearly basis was reported. The 1990
    household count, according to the Census, was 7,242. ESRI expects that the
    number of households will decline between 2000 and 2011. In that year, the
    projected household count is 7,224, a decrease of 0.43% annually from 2006 to
    2011. Although this change is small in an absolute sense, it does represent a
    decline while the state is anticipated to report a small increase.
•   Incomes in the area have increased at a rate just below that of inflation since
    the beginning of the current decade. The 2006 median income for the market is
    estimated by ESRI to be $39,130. This reflects an increase of 3.19% on an
    average annual basis since 1999, when an income of $31,405 was recorded. ESRI
    projects that the median income level will increase by 3.8% per year on average
    between 1999 and 2011 to $45,913. The state’s median income is expected to
    increase more slowly than the median income for the Riverfront-Indian Village
    market over the next five years.
•   Between 1990 and 2000, the propensity to rent increased slightly among
    households. In 1990, 53.4% of all households rented their shelter in the market
    area. By 2000, this percentage increased to 55.5%. In addition, the absolute
    number of renter households in the market increased by approximately 10.8%,
    moving from 4,448 to 4,927. These figures are higher than the state’s renting
    percentage.
•   Housing stock in the area is generally aged, which had an important effect on
    the price and value of housing units in the market. According to the 2000
    Census, 33.5% of all housing units were included within single family detached
    structures. The age of these structures was much older than the state’s average;
    overall, 1947 was the median build year in the subject market. The median house
    value for this market was $77,709, (70% of the state average), and median
    contract rents were $511 (94% of the state median). Owner costs are expected to
    appreciate by 2.84% on an average annual basis between 2000 and 2011.
    Projected data is unavailable for rents; however, rents increased by 5.61% yearly
    on average from 1990 to 2000.
•   Substandard housing conditions among both renter and owner households
    are lower than state averages. In 2000, the US Census found that 5.2% of renter
    units and 2.0% of owner units were either overcrowded or lacked sufficient
    plumbing.
•   A significant percentage of both renter and owner households pay more than
    35% of their income for shelter. According to the 2000 Census, 31.6% of the
    renter households in the market and 13.1% of owner households are in this
    category. The incidence of owner and renter overburden exceeds the state’s
    average.


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FAMILY RENTAL MARKET
  • There are three financing types available in the Riverfront-Indian Village
     market. CRS conducted a telephone survey of eight local rental housing
     complexes. Of these, one is Subsidized, two are LIHTC projects, and five are
     Conventional. The Subsidized and Conventional developments have the highest
     overall occupancy rate (99%), followed by the LIHTC developments at 89%.
  • The majority of the properties in the market are relatively aged. Of the three
     financing types present in the market currently, the LIHTC complexes were the
     most recently constructed, reporting an average build date of 1990. The
     Subsidized complex was constructed in 1979 and the Conventional properties
     reported an average build date of 1950.
  • Average rents in the market reflect the type of financing utilized to construct
     the facilities. Average rents for one-bedroom units ranged from $747 for
     Conventional projects to $792 for LIHTC developments. Two-bedroom units
     were leased for an average of $908 in the Conventional market to $963 in the
     LIHTC market. The average rental rates for three-bedroom units ranged from
     $1,159 for LIHTC properties to $1,750 for Conventional developments. Overall,
     180 units included a project-based subsidy, which accounts for 9.6% of the units
     available in the local market.



SENIOR RENTAL MARKET
  • Three complexes in the market are senior-designated. Two properties are
     LIHTC projects and one development is a Section 236 complex. Occupancy rates
     in both market segments are less than optimal. The LIHTC projects are 90%
     occupied and the Section 236 project is 93% occupied.
  • The majority of properties in the market are aged. The LIHTC properties
     were the most recently constructed with an average build date of 1982. The
     Section 236 project reported a build date of 1976.
  • The majority of available units include one bedroom. Of the 835 units
     available in the market, 669 (80%) have one bedroom.
  • Average rental rates are higher in the LIHTC market than at the Section 236
     property. On average, one-bedroom units are leased for $610 in the LIHTC
     market as compared to $530 at the Section 236 complex. The average two-
     bedroom LIHTC unit carries a rental rate of $705, while the Section 236 property
     has an average two-bedroom rent of $645. A significant portion of the senior
     market includes project-based subsidies including 52% of the LIHTC market and
     36% of the Section 236 units. Overall, 390 units, or 47% of the market, included
     project-based subsidies.




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                         Data Tables
     Table 1: Population and Household Trends
Population - 2000                                     15,970
 Change - 1990 to 2000                                    -3.5%
 Annual Average Change - 1990 to 2000                    -0.36%

Population - 2011                                     14,816
 Projected Change - 2000 to 2011                          -7.2%
 Annual Average Projected Change - 2000 to 2011          -0.68%


Households - 2000                                        7,672
 Change - 1990 to 2000                                    5.9%
 Annual Average Change - 1990 to 2000                    0.58%


Households - 2011                                        7,224
 Projected Change - 2000 to 2011                          -5.8%
 Annual Average Projected Change - 2000 to 2011          -0.55%




                  Table 2: Income Trends

Median Household Income - 1999                       $31,405
 Change - 1989 to 1999                                   61.2%
 Annual Average Change - 1989 to 1999                    4.89%

Median Household Income - 2011                       $45,913
 Projected Change - 1999 to 2011                         46.2%
 Annual Average Projected Change - 1999 to 2011          3.51%




              Table 3: Median Age Trends

    Median Age - 1990                             34.8
    Median Age - 2000                             39.9
    Median Age - 2011                             43.3



      Table 4: Renter Propensity and Vacancy

    Owner Propensity - 2000                       30.9%
    Owner Propensity - 2011                       29.8%
    Renter Propensity - 2000                      55.5%
    Renter Propensity - 2011                      52.7%
    Senior Renter Propensity - 2000               63.9%
    Vacant Housing Units - 2000                   13.7%
    Vacant Housing Units - 2011                   17.6%
    Seasonal Vacancy Rate - 2000                  1.0%


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  Table 5: Home Value and Year Structure Built

Median Home Value - 2000                              $77,709
Median Home Value - 2011                             $105,759
 Projected Change - 2000 to 2011                      36.1%
 Annual Average Projected Change - 2000 to 2011       2.84%


Median Year of Structure Built                        1947



                  Table 6: Housing Stock

    Single-Family - 2000                          33.5%
    Multi-Family - 2000                           65.1%
    Mobile Homes - 2000                           1.3%
    Other - 2000                                  0.1%



            Table 7: Median Contract Rent

Median Rent - 1990                                    $296
Median Rent - 2000                                    $511
 Change - 1990 to 2000                                72.6%
 Annual Average Change - 1990 to 2000                 5.61%




            Table 8: Unemployment Trends

    Unemployment Rate - 1990                      18.9%
    Unemployment Rate - 2000                      7.4%
    Unemployment Rate - 2011                      11.2%



    Table 9: Population by Selected Age Group

Senior Population (65 and older) - 2000               2,715
 Change - 1990 to 2000                                    -2.2%
 Annual Average Change - 1990 to 2000                 -0.22%


Senior Population (65 and older) - 2011               2,652
 Projected Change - 2000 to 2011                          -2.3%
 Annual Average Projected Change - 2000 to 2011       -0.21%


Population (age 21 to 44) - 2000                      5,590
 Change - 1990 to 2000                                    -9.5%
 Annual Average Change - 1990 to 2000                 -0.99%


Population (age 21 to 44) - 2011                      4,637
 Projected Change - 2000 to 2011                      -17.0%
 Annual Average Projected Change - 2000 to 2011       -1.68%

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                  Family Apartment Survey
Market:         RIVERFRONT - INDIAN VILLAGE                   Type: FAMILY
Project Type:                       Subsidized       LIHTC          Conventional

   Total Units                          180           491              1212
   Total Projects                        1             2                 5
   Average Build Date                  1979          1990              1950
   Average Number of Stories            N/A           3.5              10.0
   Project-based Subsidy               100%           0%                0%
   Total Occupany Rate                  99%          89%               99%

   Efficiencies
     Total Units                         0             0               N/A
     Average Bathrooms                                                   1
     Average Rental Rate                                               $506
     Average Unit Size                                                  390
     Occupancy Rate                                                    N/A
   One-Bedroom
     Total Units                        16           N/A                 80
     Average Bathrooms                   1            1.2                 1
     Average Rental Rate           30% of Income     $792               $747
     Average Unit Size                                925                843
     Occupancy Rate                   100.0%         N/A               98.8%
   Two-Bedroom
     Total Units                       148           N/A               N/A
     Average Bathrooms                  1.3           1.9               1.5
     Average Rental Rate           30% of Income     $963              $908
     Average Unit Size                               1042              1474
     Occupancy Rate                    99.3%         N/A               N/A
   Three-Bedroom
     Total Units                        16            N/A               N/A
     Average Bathrooms                  1.5            2                N/A
     Average Rental Rate           30% of Income     $1,159            $1,750
     Average Unit Size                                1222              2100
     Occupancy Rate                   100.0%          N/A               N/A
   Four or More Bedroom
     Total Units                         0             0                 0
     Average Bathrooms
     Average Rental Rate
     Average Unit Size
     Occupancy Rate

   At least 50 percent of the developments offer:
   Type of Heat                        GAS          GAS/ELE             N/A
   Heat Charges                                                          X
   Electric Charges
   Rehabilitated units
   On-Site Management                    X             X
   Garbage Disposals                     X             X                 X
   Dishwashers                                         X                 X
   Walk-in Closets                       X             X                 X
   Patios/Balconies                      X             X
   Exterior Storage/Basement                           X
   Central Air-conditioning              X             X
   Laundry Hook-ups
   In-unit Laundry                                     X
   Vaulted Ceilings                                    X
   Individual Entries                    X             X
   Clubhouse/Community Space             X             X
   Pool                                  X             X
   Carports                                            X
   Garages                                             X
   High-End Senior Amenities




                                             7
                     Senior Apartment Survey

Market:         RIVERFRONT - INDIAN VILLAGE                      Type: SENIOR
Project Type:                                    LIHTC      Section 236

   Total Units                                     555         280
   Total Projects                                   2            1
   Average Build Date                             1982         1976
   Average Number of Stories                       8.0         18.0
   Project-based Subsidy                          52%          36%
   Total Occupany Rate                            90%          93%

   Efficiencies
    Total Units                                     0           0
    Average Bathrooms
    Average Rental Rate
    Average Unit Size
    Occupancy Rate
   One-Bedroom
    Total Units                                    441         228
    Average Bathrooms                               1           1
    Average Rental Rate                           $610         $530
    Average Unit Size                             599          646
    Occupancy Rate                               88.9%         N/A
   Two-Bedroom
    Total Units                                    114          52
    Average Bathrooms                               1           1
    Average Rental Rate                           $705         $645
    Average Unit Size                             775          855
    Occupancy Rate                               95.6%         N/A
   Three-Bedroom
    Total Units                                     0           0
    Average Bathrooms
    Average Rental Rate
    Average Unit Size
    Occupancy Rate
   Four or More Bedroom
    Total Units                                     0           0
    Average Bathrooms
    Average Rental Rate
    Average Unit Size
    Occupancy Rate

   At least 50 percent of the developments offer:
   Type of Heat                                   GAS/H2O      ELE
   Heat Charges                                      X
   Electric Charges                                  X
   Rehabilitated units                               X          X
   On-Site Management                                X          X
   Garbage Disposals                                 X          X
   Dishwashers
   Walk-in Closets                                   X
   Patios/Balconies                                  X          X
   Exterior Storage/Basement
   Central Air-conditioning                                     X
   Laundry Hook-ups
   In-unit Laundry
   Vaulted Ceilings
   Individual Entries
   Clubhouse/Community Space                         X          X
   Pool
   Carports                                          X
   Garages
   High-End Senior Amenities




                                             8
Map: Household Change (2000 to 2010)




                 9
Map: Median Household Income (2000)




                10
Map: Renter Percentage (2000)




             11
Map: Family Apartments




         12
Map: Senior Apartments




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