Chicago business development recommendations
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  • Abstract: The following presentation describes the 60616 zip code area, a previously blighted urban area of Chicago that has experienced a significant economic turnaround in the last decade. The neighborhoods of Bridgeport, Bronzeville, South Loop, Pilsen, and others have been identified as significant trending neighborhoods within this zip code. This report focuses on the community of Bridgeport. Information taken from the 2000 U.S. census has been compared with current relevant real estate information taken from popular online sources that analyze market trends throughout the U.S.
  • The 60616 zip code is in Chicago’s lower West Side and is a densely populated urban area . The Chicago Tribune identifies the neighborhoods of Bridgeport, Bronzeville, South Loop, and Pilsen among others as part of the 60616 zip code. Most of these are architecturally rich inner city neighborhoods and have already seen a substantially amount of gentrification. This paper focuses primarily on Bridgeport, which is poised for a significant turn-around in the midst of the rest of these neighborhoods. Most of these neighborhoods have already seen a significant amount of revitalization during the last decade as well but are poised for further development but none more so than Bridgeport. Historically, and still predominantly African-American, this neighborhood is becoming one of the more racial mixed neighborhoods. (chicagotribune.com/classified/realestate/communities). Although there has been a tremendous influx of new-comers to the neighborhood in the last ten decades, the recent economic downturn has slowed down development and the price per square foot has declined by 24.9%, (www.trulia.com). Despite this, and perhaps as a result of it, real estate sales have continued grow, increasing 103.7% over the last year, while the median sales price has decreased by 10%, or $29,000.00, (www.trulia.com). Accounting for all trends, real estate values and the number of listings in this 60616 neighborhood have remained relatively steady over the past five years, despite the fact that there has been a more significant downturn in the overall value of Chicago real estate, (zillow.com).
  • General characteristics of age and gender from the 2000 U.S. Census are not substantially different from the U.S, though it is notable that there are slightly less children under the age of five and adult populations of 18 and over and 65 and over are both slightly larger that the U.S. average, (factfinder.census.gov). This indicates that there is an absence of families with children below the age of 18 during the 2000 Census period, however, information retrieved from zillow.com indicates that this has significantly changed in the last decade. Currently, 31.1% of the households in Bridgeport have children, (zillow.com).
  • Data from the 2000 U.S. census indicates that population of African-Americans and Asians are significantly larger in these neighborhoods than in the U.S. population in general, while Whites are substantially lower and the Hispanic or Latino population is somewhat notably lower as well. The traditional population from the 2000 Census has been augmented by “Non-Native Newbies”, “Foreign Born Urbanites”, and “Multi-Lingual Urbanites”, generally educated foreign born nationals who work in a variety of occupations and speak multiple languages, (zillow.com).
  • Of particular note are the discrepancies between owner-occupied housing and renter-occupied housing in the 2000 census. The 60616 zip code indicates an almost complete reversal of the national averages with 73.3% of the population in rental units while on average 66.2% of Americans are home-owners at this time. While there are still a significant amount of “Urban-Bootstrappers”, single parent families, generally female, who are mostly renters in the area surrounding Bridgeport, (zillow.com), today the number of owner-occupied housing units is 42.8%. While this is still substantially below the national average, it is relatively the same as the Chicago average.
  • According to the 2000 U.S. Census there is still substantial poverty in this zip code with 24.9% of families and 28.1% of individuals below the poverty level, compared to the U.S. averages of 9.2% and 12.4% respectively. As the number of workers in the U.S. labor force are similar, 63.9% in the U.S. vs. 60.3% in 60616, we can deduce that at this point in time people in these neighborhoods were relatively underemployed. Today, the average household income of the population of Bridgeport is $37,011.00 very similar to the Chicago average of $38,625.00, still somewhat below but approaching the national average of $44,512.00.
  • As the neighborhood of Bridgeport demonstrates a significant influx of newer upwardly mobile independent households, an advertising campaign directed towards first time home-owners is suitable. This neighborhood has witnessed significant population changes over the past decade and is showing evidence of economic stability. The upward trend of all the neighborhoods in the 60616 zip code has persisted despite the recent severe economic downtrend; properties in the these neighborhoods are relatively maintaining their value. As the neighborhoods are still comprised predominantly of minorities the campaign should be inclusive, to avoid disengaging these potential consumers. The campaign should focus on the vibrancy of these neighborhoods and also focus on the influx of young professionals and should not avoid being specifically family-focused.
  • Social and housing characteristics are examined in the following study to determine what the most suitable alternative for a flagship store for a newly developed five store strip mall in Chicago’s 60616 zip code, a densely populated transitional urban area. The specific neighborhood of Bridgeport is examined, a historically blighted predominantly minority neighborhood. 2000 U.S. Census data is compared with available current information available from real estate web sites to compare demographic changes in home-ownership over a ten year period. Additionally increases in education levels, percentages of married couples, and number of families with children are incidentally reviewed. The resulting suggestion of a home accessory/fashion store as the mall’s flagship is a result of an examination of the gentrification and redevelopment of the entire area and placed in conjunction with the proximity of available big box home improvement stores and the lack of proximity of home accessory/fashion stores. Additionally, it is presented that this type of store would appeal to both long-term residents and new residents to the neighborhood and also to both renters and homeowners.
  • The social characteristics and housing characteristics of the 60616 neighborhoods, focusing on the new strip mall to be located in Bridgeport, suggest that local business needs for a new strip mall center around the home improvement industry. There are a number of big box hardware stores already integrated well with the 60616 zip code, including eleven Ace Hardware Stores, three Home Deport Stores, and two Lowe’s stores all within a five mile radius. The suggestion for a flag ship store for this mall would be a Bed Bath and Beyond. While there are currently four Bed Bath and Beyond stores in the 60616, all of these stores are located east of Interstate 94 and are therefore geographically isolated from the residents of the Bridgeport community. Few communities “find themselves at more of a crossroads between past and future than Bridgeport” (Steele, 2008). While there are still a large amount of decade old brick bungalows and ranches that benefit from the nearby hardware stores, Bridgeport has also grown vertically, incorporating a number of high rise developments into the community, (Steele). Residents in both these types of dwellings would almost surely take advantage of a reasonably priced home accessory/fashion store. Additionally, as Bed Bath and Beyond is notably a reasonably priced store that heavily canvases local neighborhoods with promotional coupons, both long-term residents and newer residents of the community could take advantage of this store in a convenient location. As the foot print of a Bed Bath and Beyond store is mid-sized, it would be well suited to the smaller, (5 store), strip mall environment.
  • The 2000 U.S. census information on the social characteristics of the 60616 area indicate that the 60616 zip code had a significantly larger number of foreign born residents and residents who speak English as a second language, this trend persists today, with the “Non-Native Newbies”, “Foreign Born Urbanites”, and the “Multi-Lingual Urganites”, outlined as the local population by Zillow. Married males and females have increased to 49.6%, (zillow.com), which represents a significant increase for married females who in 2000 number only 38.2% and a more modest increase for married males who in 2000 number only 47.3%. Additionally as the average household income in Bridgeport is now $37,011.00, which is very close to the average income for Chicago, which is now $38,625.00, we can expect that the number of high school graduates will have increased from the 2000 levels illustrated above.
  • Of particular note are the discrepancies between owner-occupied housing and renter-occupied housing in the 2000 census. The 60616 zip code indicates an almost complete reversal of the national averages with 73.3% of the population in rental units while on average 66.2% of Americans are home-owners. Although there are still a significant amount of “Urban-Bootstrappers”, single parent families, generally female, who are mostly renters in the area surrounding Bridgeport, (zillow.com), today the number of owner-occupied housing units is 42.8%. While this is still substantially below the national average, it is relatively the same as the Chicago average. All of the aforementioned demographics would be able to take advantage of a proximally located Bed, Bath, and Beyond as both renters and owners would be able to take advantage of reasonably priced home accessory store.
  • A total of 2342 housing units, (only 26.7%), in 60616 are owner occupied as opposed to the national averages where 66.2% of properties are owner-occupied. The median housing value in 2000 was $171,700.00, (U.S. Census). Today there has been a substantial rise in the number of owner occupied housing, rising to 42.8%, (zillow.com). Additionally the median housing value as listed by Trulia was $260,000.00 for the fourth quarter of 2009, while Zillow lists the average home value as $281,100.00 for December 2009.
  • In the 2000 U.S. Census we can see that home-owners in 60616 have a minimal amount of debt. 34.8% of homeowners had no mortgage at all, while those remaining homeowners who had mortgages, 81.9% had no second mortgage of home equity loan. When considering the great increase of equity in these properties in the last decade, with average home values rising approximately $100,000.00, long-term residents have considerable untapped equity in their property, while new home owners willing to invest in a previously underdeveloped neighborhood are often willing to make substantial improvements on their property. Additionally, those home-owners who have purchased in newly developed condominium towers, as well as any new renters, would benefit from having proximal access to a home accessory store.
  • The social and housing characteristics indicate a home accessories store, would be successful as the flagship in the newly developed five store strip mall in Bridgeport. Suggestions for additional stores that should be sought as companions would be a small to mid-sized bookstore, discount clothing store, office supply store, and a dry-cleaner. All of the preceding stores would serve the growing affluence indicated by the demographics of this 60616 neighborhood. Additionally, as the nearest Bed, Bath, and Beyond stores are geographically less accessible, residents would find it convenient to have this store in their neighborhood. A home accessory/fashion store would also complement the large array of big box home improvement centers already in close proximity.
  • Chicago, 60616 Real Estate Overview. (2010, February 28). Trulia.com. Retrieved from http://www.trulia.com/real_estate/60616-Chicago/Chicago home values and home prices. (2010, February 1). Zillow.com. Retrieved from http://www.zillow.com/local-info/IL-Chicago-home-value/r_17426/#metric=mt%3D34%26dt%3D1%26tp%3D5%26rt%3D7%26r%3D17426%2C84618Mann, L. (2009, March 6). Pilsen: Where change is underfoot: Redevelopment brings renewed life to old ethnic neighborhood. Chicago Tribune, Chicago Real Estate Community Profile. Retrieved from http://www.chicagotribune.com/classified/realestate/Chicago_IL/chi-pilsen-profile_chomes_0306mar06,0,3632029.storySteele, J. (2008, October 31). Bridgeport bridges past with present: An old neighborhood grows up as sound of construction competes with serenity of tree-lined streets. Chicago Tribune, Chicago Real Estate Community Profile. Retrieved from http://www.chicagotribune.com/classified/realestate/communities/chi-bridgeport-profile_chomes_10oct31,0,6447858.storyWilliams-Harris, D. (2008, June 27). Bronzeville ready for its renaissance: neighborhood faces challenges, opportunities amid revitalization efforts. Chicago Tribune, Chicago Real Estate Community Profile. Retrieved from http://www.chicagotribune.com/classified/realestate/communities/chi-bronzeville_chomes_0627_frijun27,0,4925580.storyWilliams-Harris, D. (2008, May 30). South Loop blends hip, historic: Gains momentum as a vibrant and livable destination. Chicago Tribune, Chicago Real Estate Community Profile. Retrieved from http://www.chicagotribune.com/classified/realestate/communities/chi-fri_southloop_nh_0530may30,0,1524709.storyDepartment of Commerce, U.S. Census Bureau (nd). 33618 Census bureau fact sheet [Data file]. Available from American Fact Finder web site, http: //www. factfinder.cesus.gov

Chicago business development recommendations Chicago business development recommendations Presentation Transcript

  • Presented by David H. Thibodeau 2/28/2010
  • Agenda General Characteristics (Age & Gender) General Characteristics (Race) Housing Characteristics Economic Characteristics
  • General Characteristics (Age & Gender)90.00%80.00%70.00%60.00%50.00% U.S.40.00% 6061630.00%20.00%10.00% 0.00% Male Female Under 5 years 18 years and over 65 years and over
  • General Characteristics (Race)80.00%70.00%60.00%50.00%40.00% U.S.30.00% 6061620.00%10.00% 0.00% White Black or American Asian Native Some other Two or more Hispanic or African Indian and Hawaiian race races Latino (of American Alaska Native and Other any race) Pacific Islander
  • Housing Characteristics100.00%90.00%80.00%70.00%60.00%50.00% U.S.40.00% 6061630.00%20.00% 10.00% 0.00% Occupied housing units Owner-occupied housing Renter-occupied housing Vacant housing units units units
  • Economic Characteristics70.00%60.00%50.00%40.00% U.S.30.00% 6061620.00%10.00% 0.00% In labor force (≥ 16 years) Families below poverty level Individuals below poverty level
  • 60616 trending as a stable investment environment
  • •Social Characteristics•Housing Characteristics•Owner-occupied housing values•Owner-occupied housing debt•Conclusion
  • Social Characteristics90.00%80.00%70.00%60.00%50.00% U.S.40.00% 6061630.00%20.00%10.00% 0.00% High school graduate or higher Bachelors degree or higher population(population 5over) andborn Speak a languageseparated (population home (population 5 years an Civilian veterans (civilian Disability status 18 years and years Male, Now married, except separatedexcept other15 years and over) years and over) Foreign over) married, (population than English at 15 Female, Now
  • Housing Characteristics100.00%90.00%80.00%70.00%60.00%50.00% U.S.40.00% 6061630.00%20.00% 10.00% 0.00% Occupied housing units Owner-occupied housing Renter-occupied housing Vacant housing units units units
  • Owner-occupied housing units (value) $400,000 to $499,999 (2.7%) $300,000 to $399,999 (9.1%) $200,000 to $299,999 (23.6%) Total = 2342$100,000 through $199,999 (49.5%) $0. through $99,999 (14.1%) 0 200 400 600 800 1000 1200 1400
  • Owner-occupied housing units (debt) Without a mortgage (34.8%)No 2nd mortgage or equity loan (81.9%) Both 2nd mortgage & equity loan (0%) Home equity loan only (64.1%) Mortgage Status 2nd mortgage only (35.9%) 2nd mortgage or equity loan (18.1%) Mortgage or similar debt (65.2%) 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800