Downtown Cincinnati Housing has Strong Economic Potential.

CINCINNATI--(BW HealthWire)--Jan. 4, 1999--As cities across the U.S. search for ways to develop viable and sustainable urban communities, Cincinnati has discovered one exciting and previously untapped resource.

A recently released residential market study reveals that downtown housing could have a $40 million annual economic impact.

"A large and diverse residential population living in the heart of downtown holds the key to a vibrant, 24-hour-a-day city," said David Ginsburg, senior vice president of Downtown Cincinnati Inc. (DCI).

The study was conducted by Project Market Decisions (PMD) Advisory Services for DCI, Cincinnati's downtown economic development and marketing partnership. The report validates the market opportunity for upscale housing and mixed-use neighborhoods to accelerate Cincinnati's urban redevelopment renaissance.

Some of PMD's findings include:

-- Downtown occupancy rates averaging 98% reflect a tight market,

pent-up demand and limited supply of residential product.

-- Target consumers are young professional and empty nester 

households with incomes ranging to $75,000 and beyond.

-- Demand for rental units should average approximately 240 units a

year from 1999 through 2003. The downtown market should also

absorb an annual average of 25 ownership (condo/town home) units.

-- The 400 rental units planned or under construction over the next

two years will not meet projected demand and a comprehensive plan

for residential development is critical to a viable downtown

revitalization.

PMD's study also addressed several challenges and constraints to downtown residential development including the cost of site acquisition and improvement, as well as the project approval process.

The study recommended strategies such as a public/private Redevelopment Authority; "land banking" parcels and properties in targeted neighborhoods, and zoning districts that stimulate residential as well as commercial land uses.

"Downtown residents support downtown merchants and established neighborhoods will stimulate restaurant, retail and entertainment businesses all year round. An exciting urban lifestyle will assist in recruiting a top quality downtown workforce -- the key to business retention and corporate relocation," says Kathy Schwab, DCI's residential development advisor who adds, "PMD identified the opportunities, the obstacles and a course of action to achieve DCI's housing goals."

"We are extremely enthusiastic about these findings," announced DCI Chief Operating Officer Rick Greiwe. "The research conducted by PMD was rigorous and thorough, delivering a critical tool to assist in our efforts to attract developers and secure financing for our projects. This study will become a cornerstone of DCI's strategic plan for Cincinnati's urban vision."

According to Jim McGraw, a prominent Cincinnati-based national economic development consultant, "PMD's system blends quantitative tools with qualitative primary research such as interviews and focus groups that strengthen their analysis of the statistical data. PMD's working partnership with DCI to share their research in a series of joint sessions enhanced the entire collaborative process. It is an excellent methodology."

PMD is a nationally recognized market research and planning firm delivering economic impact and project feasibility studies as well as demographic data products to the public sector, commercial real estate community and the senior living industry.