1. NEW HOME MARKET OVERVIEW Presented to: McHenry County Council of Governments

2. RESIDENTIAL PLANNING PARTNERS Real estate market research, analysis, and strategic planning for public and private sector clients.  Market Assessment & Trend Analysis  Needs/Opportunity Analysis  Project Market & Feasibility Studies  Strategic Development Consulting 3023 N. Clark St., #896 Chicago, IL 60657 312.906.7537 info@resplanning.com www.resplanning.com

3. MARKET OVERVIEW – MIDWEST REGION Source: U.S. Census Bureau Median Sales Price of New Single Family Homes

4. MARKET OVERVIEW – MIDWEST REGION Source: U.S. Census Bureau New Home Sales (000’s) – Midwest Region

5. MARKET OVERVIEW – MIDWEST REGION Source: U.S. Census Bureau Annual Housing Starts (000’s) – Midwest Region

6. MARKET OVERVIEW – METRO CHICAGO Source: U.S. Census Bureau & Residential Planning Partners, LLC. Single Family Permit Issuances – First Six Months 2012 & 2013

7. MARKET OVERVIEW – MCHENRY COUNTY Source: U.S. Census Bureau & Residential Planning Partners, LLC. Single Family Building Permit Trends – McHenry County Average: 1,935 Building Permits Issued (Bar) Percent of Metro Region (Line) (1) (1) seasonally adjusted, annualized rate.

8. MARKET OVERVIEW – MCHENRY COUNTY McHenry County New Home Market Snapshot (1) Source: Residential Planning Partners, LLC. (1) Includes only active production-oriented new home developments.

9. MARKET OVERVIEW – MCHENRY COUNTY Most Active McHenry County New Home Developments (1) Source: Residential Planning Partners, LLC. (1) As measured by current construction volumes, surveyed 9/25/13.

10. THE ROAD AHEAD The Road Ahead: Trends to Watch - McHenry County New Home Market 1.Continued robust production volumes in southern and central McHenry County, particularly along the IL-47 corridor. 2.Investment by larger builders in dormant developments. 3.Strengthening demand fundamentals overall, including accelerating job growth and a return to more normal levels of household formation. 4.New land acquisition, particularly by top builders, and increasing movement into McHenry County. 5.Increasing demand for housing forms geared toward Millennials and Seniors. 6.Increasing longer term development potentials as land depletion and price escalation continues in “closer in” locations of Cook and DuPage counties.

11. THE ROAD AHEAD Geographic Delineation: Active New Home Developments by Top Builders (1) – Metro Chicago (1) Locations are approximate. Circles are not meant to signify a specific geographic radius. Source: Residential Planning Partners, LLC.

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