01-22-08 1B Market Study - Laserfiche WebLink

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DEMOGRAPHIC ANALYSIS Household Income Household income data helps in determining the demand for different types of owned and rented housing based on the size ofthe market at specific incomes levels, and also provides insight into the amount of discretionary dollars that consumers may have to spend on goods and services. Table 4 and Table 5 show the estimated household income in the Arden Hills Market Area for 2007 and 2012. Household income data was compiled by Claritas Inc. and adjusted by Maxfield Research Inc., based on our household projections. ~ The median household income in Arden Hills in 2007 is estimated to be nearly $74,000. This is $10,000 higher than the Remainder of the Market Area median house- hold income of just over $64,000. Arden Hills' higher median income is largely the re- sult of a greater proportion of middle-aged families with two wage earners, and a lower percentage of retired older seniors and younger entry-level workers. By 2012 the Market Area's median income is projected to rise to $81,650 (an II % increase), while the Sec- ondary Market Area median income is projected to rise to approximately $70,000. ~ Households ages 45 to 54 in Arden Hills had the highest estimated median incomes in the Market Area in 2007 (over $100,000). Most ofthese households will seek ups- cale single-family homes and would not be a market for multifamily housing in Ar- den Hills. ~ Households under age 35 are typically in the rental market or entry-level for-sale market. This age group, along with seniors, is a primary market for multifamily housing in the TCAAP area. The median income in 2007 for those households ages 24 and under in the Total Market Area was estimated to be approximately $42,000. With this income, a household could afford a monthly rent of about $1,000 (including rent, 18 MAXFIELD RESEARCH INC.