Feasibility Studies –
Investors, banks and developers are often seeking an unbiased opinion on a new sub-division or master planned community.
Feasibility studies analyze marketing environments on four fronts:
1) Economic climate,
2) Population characteristics and changes,
3) Housing activity, both new and resale, and
4) Customer profiles.
The client can expect to receive a report detailing the socioeconomic characteristics of a selected target market. The market may include an overview at the Metropolitan Statistical Area (MSA) level and data permitting, a narrowly defined sub-market.
The details will include changes in employment and the impact on housing demand. This coupled with population data addresses the issue of household formations and the changing demographic characteristics of the population.
Housing
activity is based upon new and resale transactions. New home sales activity may
be based 
either
on building permits issued or on recorded transactions. Resale data is often
obtained from the MLS system with the data down-loaded into a statistical
program for analysis.
Customer profiles are established through random interviews with recent purchasers within the defined target market.
Questions cover motivation to move to their new location, where they lived before, characteristics of the family, and how they made their final purchase decision.
Using statistical methods, long-term trends as well as emerging opportunities are identified, resulting in recommendations on opportunities for success in the market.