Residential Housing Target Market Analysis
Dickinson County Michigan 2016
Through a collaborative effort among public and private stakeholders, LandUse|USA has been engaged to conduct this Residential Target Market Analysis (TMA) for the Upper Peninsula Prosperity Regions 1a, 1b, and 1c. The West Region 1a includes six counties; the Central Region 1b includes Dickinson County with five others; and East Region 1c has three counties (for a total of fifteen counties).
Together with regional contributions, this study has also been funded by a matching grant under the state’s Place-based Planning Program. The program is funded by the Michigan State Housing Development Authority (MSHDA), and has also has the support of the Community Development division and the Michigan Economic Development Corporation (MEDC). Regional Community Assistance Team (CATeam) specialists are available to help places become redevelopment ready.
This study has involved rigorous data analysis and modeling, and is based on in-migration into Dickinson County and each of its three cities. It is also based on internal migration within those places, movership rates by tenure and lifestyle cluster, and housing preferences among target market households. This Executive Summary highlights the results and is followed by a more complete explanation of the market potential under conservative (minimum) and aggressive (maximum) scenarios.
Maximum Market Potential – Based on the Target Market Analysis results for an aggressive scenario, there is a maximum annual market potential for up to 466 attached units throughout Dickinson County, plus 626 detached houses (for a total of 1,092 units). Among the 466 attached units, the majority of the market potential will be captured by the Cities of Iron Mountain (175 units annually), Kingsford (103 units), and Norway (92 units). Kingsford is located south and adjacent to Iron Mountain, and Norway is located about 8 miles farther east along Highway 2.
Minimum Market Potential – Dickinson County has an annual market potential for at least 263 attached units (i.e., excluding detached houses), across a range of building sizes and formats. Of these 263 attached units, 34 will be occupied by households among the upscale target markets, and 209 will be occupied by moderate target market households. The balance of 20 units will be occupied by diverse lifestyle clusters that are more prevalent in the county – and that also have lower propensities to choose attached housing formats.
There will also be 96 migrating households in Dickinson County each year seeking attached units in locations other than the three cities. Compared to other counties in the Upper Peninsula region, a large share of the market potential for Dickinson County will be generated by households choosing
to live in the surrounding townships and unincorporated places like the Quinnesec Census Designated Place (CDP). Quinnesec is located midway between Iron Mountain and Norway, with an easy commute to both places.
Complete study available at: http://www.cuppad.org/wpcontent/uploads/2015/07/1b-UP-TMA-DICKINSON-07-30-16.pdf
Contact for additional information:
Lois Ellis, Executive Director
(906) 360-4653 or Lois.Ellis@DAEDA.org