June 2008

W W W . S O C I A L C O M P A C T . O R G

The Information Intermediary forCommunity Development

A tale of two neighborhoods …

Neighborhood A

Market SizePopulation: 328,001Households: 126,321

Market Buying PowerAgg. Neighborhood Income: $4.7 B

Average Household Income: $37,283Income per Acre: $785,000

Market Stability/RiskMedian Home Value: $220,982

Neighborhood B

Market SizePopulation: 388,246Households: 152,383

Market Buying PowerAgg. Neighborhood Income:

$8.4 B Average Household Income:

$55,227Income per Acre: $1.7 Million

Market Stability/RiskMedian Home Value: $600,000

Retail Spending: $364,540/acreSource: U.S. Census Bureau, 2000 and Social Compact Harlem

DRILLDOWN, 2008

In over 300 undervalued neighborhoods across the country, Social Compact has found:Larger Markets

1,000,000 More residents 350,000 More householdsGreater Buying Power

$32 billion more aggregate household income (+29%) $12 billion by informal economy income

Less Risk, More Stability Falling crime rates Booming property market High owner occupancy by building

Capturing Underserved Market Potential

Capturing Urban Market Potential

Completed DrillDownsBaltimore, MDCincinnati, OHChicago, ILCleveland, OHDetroit, MIHarlem, NYHouston, TXJacksonville, FLLos Angeles, CAMiami, FLOakland, CASanta Ana, CAWashington, DC

Current DrillDownsDenver, CO Fort Worth, TXJacksonville, FL Kansas City, MOLouisville, KYMiami/North Miami, FLOakland, CA Ontario, CAPhiladelphia, PASan Francisco, CATampa/St. Petersburg, FL

Future DrillDownsAtlanta, GACharlotte, NCChicago, ILCleveland, OHFresno, CAMemphis, TNMilwaukee, WIMinneapolis, MNNewark, NJ Pittsburgh, PARaleigh, NCRichmond, VASan Antonio, TXSt. Louis, MOToledo, OHLondon, United KingdomManila, PhilippinesGuatemala CityRecife, Brazil

Quantifying Strength in America’s Communities in 200 Neighborhoods and Beyond …

The lack of information makes investment risk averse

Every community is a market Investment is localized and defined by

place

Development Design Principles

Need to develop metrics that capture the private sector need for a return on investment with the public sector need for a public good

Indicator Construction Effort

Building Tools

For InformedDecision-making

Distribution of grocery providers overlaid with grocery store sales demand.

2007 Houston DrillDown Findings

2007 Houston DrillDown FindingsGrocery Customer Attraction

2007 Detroit DrillDown Findings3D Model of Grocery Demand

Cincinnati, OH

Capturing Urban Market Potential

New Tools: Risk Mitigation Profiles

Capturing Urban Market Potential

New Tools: Foreclosure Impact Analysis

Census Challenge Process:Since 2000, nearly 200 challenges netted over 1 MILLION in positive population adjustments to Census estimatesChallenging jurisdictions averaged a 9.2% undercount

Why this is important:1 MILLION in missed population equates to $2.2 BILLION in missed federal and state funding revenue in these marketsCensus data drive private sector investment decision-making

Capturing Urban Market Potential

New Tools: Improving Census Estimates

Education centers

Business associations

Healthy lifestyle

Yoga studios

Parks

…

Health clubs

Independent artists

Theaters

Architects

Art galleries and museums

Training schools

…

Colleges

Knowledge creation

Religious organizations …

Civil and social organizations

Community-based organizations

Arts and culture

…

URBAN FABRIC

Education Centers

Capturing Urban Market Potential

New Tools: Urban Fabric Asset-Mapping

Different individual layers could be examined to understand the different textures of the neighborhoods to identify different layers individually as well as understanding neighborhoods at the combined level of the arts and health elements to identify the “textures of urban fabric”

Capturing Urban Market Potential

Urban Fabric

Broadening Access to MethodologyLicensing methodology among a community of local data housesMaximizing replicable, updateable processes to build new tools on top of robust, granular-level, transaction-based market data not currently available

Expanding the ToolkitDemographic researchSurveysLand valuation toolRisk mitigation tool

Moving Message InternationallyPiloting 1st international DrillDown in London, UKExploring Feasibility Study to implement DrillDownframework in developing countries with the World Bank

Capturing Urban Market Potential

Expanding Scale

Community development tools

Social FabricRetail

W W W . S O C I A L C O M P A C T . O R G

John Talmage, President and CEOSocial Compact, Inc.

jtalmage@socialcompact.org738 7th Street, SE

Washington, DC 2003