The City of Peoria is looking for a few good developers to redevelop our historic core.

Nov 8, 2013

Housing Demand Study for Peoria


Over the past few years, the City has worked with Tracy Cross, a nationally recognized housing analyst, to measure the strength of housing demand in downtown and the Warehouse District.  The last report was delivered in early 2011.  Working with the Tri-County Regional Planning Commission, the City engaged Tracy Cross to update that study.  The results are attached.

Tracy Cross continues to believe there is considerable pent up demand for housing, especially rental housing, in downtown Peoria. From their report (emphasis theirs):

“It is our contention that Peoria has yet to fully serve its downtown employment base with adequate housing alternatives.  In fact, the downtown area and its Warehouse District still have the potential to absorb 200+ new housing units annually for the next several years, primarily in the form of rental apartments. Not only has downtown Peoria’s rental market improved since our previous analysis, but no new apartment product has been introduced.  In addition, although the “for sale” sector of the market (overall) is sill performing poorly, downtown Peoria continues to be void of any new construction activity, with this sector also having modest potential over time.”

The chart below shows the improvement in market since 2011:

2011
2013
Change
Rental Price (per square foot)
Loft Conversion
$1.04
$1.12
$0.08
New Construction
$1.11
$1.22
$0.11
Sale Price (per square foot)
Condominiums
$130.24
$130.24
$0.00
Row Homes
$121.71
$121.71
$0.00
Annual Absorption
Loft Conversion
102
108
6
New Construction
66
84
18
Condominiums
12
12
0
Row Homes
6
6
0
Total
186
210
24

Please share this information with your colleagues and partners.  Let me know if you have any questions.




Christopher Setti
Assistant City Manager
City of Peoria
419 Fulton, Suite 207
Peoria, IL 61602