7.5.9 Economic Context

A. The market study must include a thorough description of the current and forecast economic characteristics and conditions of the PMA, county, "micropolitan", or metropolitan area (whichever are applicable). The description is necessary to provide background and justification for the subsequent demographic analysis and estimates of demand for additional rental housing. Current economic conditions and employment characteristics must be discussed, including:

1. Identification of growth sectors in the economy and emerging trends, including a detailed discussion of the sectors in the economy that have a major impact on the local housing market, such as military facilities, colleges and universities, federal and state government, major employers, or tourism.

2. A study of recent trends in employment, including unemployment statistics and new job creation or loss, with a detailed discussion of historical nonfarm and resident employment levels and changes.

3. Any anticipated changes in employment as a result of expected closings, openings, expansions, or cutbacks by leading employers, with a particular emphasis on how this would affect the rental market during the forecast period, including any seasonal employment markets.

4. Information on the types of jobs being created and lost, including data on pay scales and how these wage levels relate to the affordability of the proposed rental units.

5. A list of major employers in the PMA, the type of businesses, and the number employed.

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Chapter 7 Valuation & Market Analysis 7.5 Content and Format of the Market Study

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6. In relevant markets (such as resort areas), comment on the availability of affordable housing for employees of businesses and industries that draw from the PMA.

7. A forecast of employment for the specified forecast period and how this forecast supports demand for additional new rental housing.