In 2014, 10 target market analyses were developed by LandUseUSA of Lansing and funded by Michigan State Housing Development Authority (MSHDA) and Networks Northwest as part of the Regional Prosperity Initiative. There is one target market analysis (TMA) for each county in Northwest Michigan.
What is the difference between a traditional housing market study and a target market analysis?
Supply and demand based on the housing choices that existing residents have already made the local market. This approach is limited because it a) relies on the behavior of residents who might not be on the move; and b) fails to consider that demographic groups would make other choices if they had the option. It can also contribute to redundancy in the housing market, and blandness in neighborhoods and communities.
A study of populations that are migrating or moving, and that also have a clear preference for city living and urban housing formats (rather than rural living and suburban formats). A study of their lifestyle preferences and of the types of housing formats that they are choosing in other markets throughout the Upper Midwest.
What is a lifestyle cluster?
For a TMA, consumers are defined by demographics, buying preferences, and other factors into a cluster. LandUseUSA utilized the privately developed MOSAIC Lifestyle database. The MOSAIC Lifestyle database is a geodemographic segmentation system developed by Experian and AGS consisting of 71 Lifestyle Clusters. For Northwest Michigan, 12 of the 71 clusters were targeted for the purpose of each TMA. These 12 target clusters were identified as they are the lifestyle clusters primarily interested in higher density areas and tend to be interested more in attached residential units (i.e., apartment complexes, duplexes, townhomes, etc.).
Since the analysis is lengthy and differs from a traditional housing market study, we have developed a very high level summary of the analysis. The Exhibit S: Summary of Target Market Analysis for Grand Traverse County below was prepared by the Grand Traverse County Planning & Development Department based on data provided in the TMA. Its purpose is to provide a very simple snapshot of the extensive TMA.