Housing Market Study: Clear Lake, Iowa

Home In Your Community Consultants Housing Market Study: Clear Lake, Iowa City of Clear Lake, Iowa Clear Lake, IA INTRODUCTION The City of Clear Lake, Iowa is soliciting proposals from qualified consulting firms to prepare a comprehensive Housing Market Study that will provide actionable market intelligence for developers, builders, investors, lenders, property owners, economic development organizations, and local decision-makers. Clear Lake occupies a unique position within the North Iowa region. As one of Iowa’s premier recreational and tourism destinations, the community is influenced by a diverse housing market that includes year-round residents, seasonal residents, second-home owners, retirees, workforce households, and visitors. The city's location on Clear Lake creates housing market dynamics that differ substantially from many Iowa communities, with seasonal population fluctuations, recreational housing demand, lake-oriented development opportunities, and short-term and vacation rental properties. In addition to its recreational and quality-of-life amenities, Clear Lake serves as an important residential community within the Mason City Micropolitan Area. Located immediately adjacent to Mason City, the largest city in North Iowa and the region's primary employment, healthcare, retail, education, and service center, Clear Lake benefits from strong economic linkages and regional workforce commuting patterns. Housing demand within Clear Lake is influenced not only by local employment and demographic trends, but also by regional economic activity, workforce attraction efforts, and employment growth occurring throughout Cerro Gordo County and North Iowa. The city seeks a market-focused study that evaluates current housing conditions, housing inventory, housing pricing, housing demand, market opportunities, and future development potential. The study should identify housing products that can be successfully developed and absorbed by the market and provide a clear understanding of current and future opportunities for residential investment. The completed study should serve as a practical resource for the development community by identifying market-supported housing products, anticipated demand by housing type, pricing and rental expectations, development opportunities, and long-term housing trends over a 5-, and 10-year planning horizon. Special consideration should be given to the influence of seasonal and recreational housing demand, regional employment growth, workforce attraction initiatives, and transformational economic development opportunities that may affect future housing demand in Clear Lake and the surrounding region. Purpose of the Study The purpose of this Housing Market Study is to: • Evaluate the current housing market within Clear Lake. • Assess the influence of seasonal and recreational housing demand. • Analyze housing supply, demand, pricing, and occupancy trends. • Identify market-supported housing opportunities. • Evaluate development and redevelopment opportunities. • Estimate future demand for housing by product type. • Provide guidance for developers, builders, investors, and lenders. • Support informed public and private investment decisions. • Position Clear Lake to accommodate future growth while preserving the community's unique character and quality of life. 2. SCOPE OF WORK 1. Community and Economic Profile Prepare an economic and demographic profile of Clear Lake including: Population Trends • Historical population growth • Seasonal population influences • Household growth trends • Household composition • Migration patterns Demographic Analysis • Age distribution • Household size trends • Income levels • Educational attainment • Workforce characteristics Economic Conditions • Employment growth • Major employers • Wage levels • Commuting patterns • Regional labor market dynamics The consultant should also assess the potential impact of emerging economic development opportunities in North Iowa that could significantly influence future housing demand. 2. Existing Housing Inventory Analysis Analyze: Ownership Housing • Number of owner-occupied units • Age of housing stock • Home values • Recent sales activity • New construction trends Rental Housing • Apartment inventory • Manufactured home inventory • Recreational Vehicle parking inventory • Vacancy rates • Occupancy levels • Rent levels • Property performance Housing Condition Evaluate: • Age and condition of housing stock • Functional obsolescence • Redevelopment opportunities • Reinvestment opportunities 3. Housing Market Evaluation The consultant shall evaluate current market performance for: Ownership Housing • Entry-level homes • Move-up housing • Executive housing • Townhomes • Condominiums Rental Housing • Market-rate apartments • Luxury apartments • Affordable housing • Workforce housing • Senior-oriented rental housing • Manufactured housing • Recreational Vehicle parking For each category, identify: • Current supply • Market demand • Competitive market area • Absorption potential • Recommended pricing 4. Residential Development Opportunity Analysis Identify market support for: Single-Family Development • Lot demand • Expected pricing • Annual absorption rates • Preferred locations Townhome Development • Product types • Unit sizes • Pricing recommendations • Market absorption Multifamily Development • Unit mix • Rent ranges • Project scale • Expected absorption Senior-Oriented Housing • Maintenance-free ownership • Active adult housing • Accessible housing options Recreational and Seasonal Housing • Recreational Vehicle Parking (seasonal and year-round) • Vacation Rentals • Manufactured Home Communities 5. Future Housing Demand Forecast Develop forecasts for: Five-Year Horizon Ten-Year Horizon Twenty-Year Horizon For each horizon, estimate: • Number of units supported • Housing type • Price ranges • Rent ranges • Anticipated absorption rates Include: • Baseline Growth Scenario • Moderate Growth Scenario • Transformational Growth Scenario The Transformational Growth Scenario should consider major economic development opportunities that may significantly increase employment and housing demand in the region. 6. Development Site and Opportunity Analysis Identify: • Development-ready sites • Infill opportunities • Redevelopment sites • Downtown residential opportunities • Surf District residential opportunities • Mixed-use opportunities For each opportunity area provide: • Potential housing product • Density range • Estimated unit count • Market feasibility observations 7. Developer Investment Guidance A key deliverable of the study shall be practical guidance for developers and investors including: Market-Supported Products • Single-family homes • Attached townhomes • Condominiums • Multifamily housing • Upper-story residential • Mixed-use housing • Manufactured Home housing • Recreational Vehicle housing Recommended Pricing Provide: • Target home sales prices • Recommended rent ranges • Product positioning Absorption Expectations Provide estimated: • Annual absorption • Build-out timelines • Market depth 3. DELIVERABLES The selected consultant shall provide: Existing Conditions Report Including: • Demographic profile • Economic profile • Housing inventory analysis Housing Market Study Including: • Market analysis • Competitive market assessment • Demand forecast • Development opportunities Executive Summary Focused on key findings and recommendations. Developer Market Guide A concise section that developers can use to evaluate potential housing investments within Clear Lake. Developer Presentation A presentation to the City Council with the key findings and recommendations. 4. CONSULTANT EXPERIENCE The city desires consultants with demonstrated experience in: • Housing market studies • Residential demand forecasting • Housing absorption analyses • Real estate market studies • Development feasibility studies • Rural and micropolitan communities • Upper Midwest housing markets 5. KEY QUESTIONS TO BE ANSWERED The final study should answer: • What housing products are currently undersupplied in Clear Lake? • What types of housing can be successfully developed today? • What sale prices and rents are supportable? • How many housing units can the market absorb annually? • Which housing types offer the strongest development opportunities? • What redevelopment and infill opportunities exist? • How will demographic and economic trends affect future housing demand? • What housing opportunities should developers prioritize over the next 5, 10, and 20 years? 6. PROPOSAL PREPARATION CHECKLIST • Cover letter and firm contact information • Project approach and understanding of Clear Lake’s market • Detailed scope, methodology, and data sources • Project schedule and key milestones • Consultant team qualifications and relevant experience • Examples of comparable housing market studies • References • Detailed fee proposal and reimbursable expenses • Identification of assumptions, exclusions, or optional services 7. PROPOSAL SCHEDULE The following is a list of key dates up to and including the date of the proposed award of contract. This schedule may change at the sole convenience of the city. RFP Issue Date Friday, October 23, 2026 Proposal Due Date Wednesday, November 4, 2026, 4:00 PM CDT Staff Review November 5-6, 2026 Consultant Interviews (if determined necessary) November 9 – 11, 2026 City Council Approval of Consultant Monday, November 16, 2026, 5:30 PM CDT Project Kick Off No later than Tuesday, November 24, 2026 Draft Report for Review No later than Wednesday, January 27, 2026 Report for Final Review No later than Wednesday, February 3, 2026 Final Report Due Date No later than Wednesday, February 10,2026 Presentation to City Council Tuesday, February 16, 2026, 5:30 PM CDT The proposal shall include a schedule to complete the required tasks and the preparation of the required deliverables. The final report should be completed and submitted to the city for final approval no later than February 10, 2026; however, the city will extend this deadline to a mutually agreed-to date if there are unavoidable delays. 8. PROPOSAL EVALUATION Proposals will be evaluated by a Review Committee comprised of the City Administrator, City Engineer, the VP for Housing and Community Development of the North Iowa Corridor Economic Development Corporation and up to two members of the community. During the evaluation process, the Review Committee reserves the right to request additional information or clarification or to allow corrections of errors or omissions. The Review Committee, at its discretion, may create a "short list" and request virtual interviews with consultants. At minimum, proposals will be evaluated based upon the relative capabilities and experience of the consulting firm in the following listed areas: • Thorough knowledge of and familiarity with housing market analysis and housing needs, particularly in rural communities similar to Clear Lake. • The specific approach to the work plan, including the methodology for conducting tasks and approach in preparing project deliverables. • The relevant skills, abilities, and experience of the Consultant staff members to conduct the proposed study. • The fee schedule for providing services for successful project completion. The Review Committee will evaluate the proposals and presentations to make a recommendation to the City Council. The City Council will make the final decision and will there-after authorize staff to enter into a contract with the selected firm. 9. SUBMITTAL REQUIREMENTS Proposals must be submitted to Shelley Oltmans at shelley@northiowacorridor.com by Wednesday, November 4, 2026 no later than 4:00 PM CDT. If you do not receive an email confirmation of receipt, please text or call 612-247-1607. Late proposals will be rejected. PDF of RFP can be requested from Shelley and found on the city website. Request Type Deadline Request Type RFP Deadline Wednesday, November 4, 2026 Contact Information Website https://www.cityofclearlake.com/ Contact Email shelley@northiowacorridor.com