Professional Documents
Culture Documents
Dear Colleagues
Social Compact conunues to change the eld of community development through its
Neighborhood Market DrillDown. Our reputauon in the industry comes from pursuing
our mission of strengthening neighborhoods by sumulaung private investment in
underserved communiues. Working collaborauvely with city leaders, we have seen a
measurable and posiuve shi in the way innercity communiues are viewed.
Our strength comes from our collaborauon with local government, private sector leaders
and community development organizauons. They are not only the best advocates for
their own neighborhoods and ciues, but they are also the key players in nding soluuons
and opportuniues for the communiues they live in. The City and County have been a
tremendous partners through this, our current eort in St. Louis.
Social Compacts DrillDown has been used by ciues and organizauons as a foundauon for
providing quality nancial services, encouraging property development, and auracung
retail establishments all vital building blocks in prosperous, healthy, and sustainable
neighborhoods and ciues.
On behalf of the Social Compact Board of Directors, I congratulate St. Louis on their
successes and look forward to our conunued partnership.
Sincerely,
Mary Lee Widener
Interim Chair, Social Compact
Board of Directors
Mary Lee Widener, Interim Chair.
Joseph Reppert, Chair,BoardofTrustees;
Vice Chair, CoreLogic, Inc.
JoAnn Kane, Treasurer;
INVEST Strategic Consultauon Services
Michael R. McGuire, Secretary;
Managing Director, MWA Advisors LLC
Clark Abrahams, Chief Financial Architect,
World Markeung, SAS
Karen Collins, Former President and Chairman;
CoreLogic
Bonnie Kantor, Senior Manager, Deloiue Services LP
Margaret Moertl, Senior Vice President,
Community Development Banking, PNC Bank
Dean Schultz, President and CEO,
Federal Home Loan Bank of San Francisco
FAQp. 34, Glossary & Sourcesp. 90.
St. Louis DrillDown
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Foreword
In conunuance of Social Compacts commitment to sumulaung investment in underserved and undervalued
urban communiues, I am proud to present the ndings of the St. Louis Neighborhood Market DrillDown. The
DrillDown analysis marks a nuanced approach to economic development iniuauves citywide.
These DrillDown ndings are undoubtedly strengthened by the local market insight and experuse of the City
and County. Furthermore, I am condent that the strong collaborauon of locally focused insutuuons and
community and business leaders in the city, will lead to signicant impact in St. Louis neighborhoods.
I anucipate that the St. Louis Neighborhood Market DrillDown ndings will serve as one way to unify the
diverse eorts of the citys leadership to implement sustainable informauonled development projects that will
reenergize and reinforce the neighborhoods.
Sincerely,
Alyssa Lee
President & CEO
FAQp. 34, Glossary & Sourcesp. 90.
St. Louis DrillDown
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Acknowledgments
Social Compact would like thank the St. Louis City and County and AmerenUE for providing the necessary data
and local insight, and CoreLogic, SAS Insutute Inc., and ESRI for their contribuuons of data, soware and
experuse.
The St. Louis Neighborhood Market DrillDown is a collaborauon cochaired by Regional Housing & Community
Development Alliance (RHCDA) and Housing and Community Soluuons, Inc., in partnership with Social Compact
of Washington, DC. Funding was provided by RHCDA, the PNC Foundauon, Commerce Bank, US Bank, an
anonymous St. Louis family foundauon and St. Louis County. Addiuonal support was provided by the City of St.
Louis and AmerenUE. The Federal Reserve Bank of St. Louis and Congressman Wm. Lacy Clay were the
conveners of the St. Louis Neighborhood Market DrillDown.
Special thanks are due to the City of Ferguson, North County Incorporated, and the Public Policy Research
Center at University of Missouri St. Louis for their early involvement in laying the foundauon for the St. Louis
Neighborhood Market DrillDown as well as their conunued support of the iniuauve.
The St. Louis Neighborhood Market DrillDown also would not have been possible without the parucipauon and
advocacy of stakeholders from a variety of sectors: governments, nonprots, foundauons, universiues,
neighborhood residents, and the private sector. Hundreds of local experts generously volunteered their ume,
parucipaung in meeungs, events and providing comments on the report and process.
Finally, many thanks to Social Compacts dedicated Board of Directors for their conunued leadership and
support.
FAQp. 34, Glossary & Sourcesp. 90.
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Innercity neighborhoods represent billions of dollars in untapped buying power and retail
leakage. The ethnic and cultural diversity of urban residents represent a myriad of
opportuniues for local entrepreneurs, niche markets and new markets for nancial service
providers, grocers, corporate retailers and other commercial investors. Despite this
opportunity, barriers to private investment in underserved neighborhoods persist. As a
result, urban residents lack access to basic goods and services at compeuuve prices, and
retailers and developers are unable to capitalize on the fundamental assets of innercity,
urban communiues.
Underserved urban neighborhoods are oen negauvely stereotyped and dened by
deciencies rather than strengths. The reason for this is manifold. First, communiues oen
use deciencybased depicuons to demonstrate need for federal subsidies and social service
programs. While these depicuons auest to social need, they do liule to highlight
neighborhood strengths and economic opportunity. Second, excessive media coverage of
undesirable characterisucs such as crime, poverty, and blight perpetuate negauve
percepuons of these innercity neighborhoods. Finally, lack of dependable businessoriented
data on underserved communiues expands the informauon gap on market trends, disabling
potenual investors from making informed decisions. Combined, these factors contribute to a
cycle of missed opportuniues in underserved urban markets.
EXECUTIVE SUMMARY
INTRODUCTION
STUDY AREA OVERVIEW
MARKET SIZE
Populauon & Households
Populauon Density
Residenual Postal Counts
Populauon Change
MARKET STRENGTH
Neighborhood Income Density
Aggregate Household Income
Neighborhood Informal Economy
Average & Median Income
New Homebuyer Income
MARKET STABILITY
Home Ownership
Business Trends
MARKET POTENTIAL
Resident Retail Expenditures
Retail Leakage
Apparel, Restaurant
Financial Services
Nontradiuonal Financial Service Providers
GROCERY GAP
FAQ
DRILLDOWN PROFILE
St. Louis Study Area Snapshot
City of St. Louis Snapshot
North County Study Area Snapshot
Subarea Snapshots
DrillDown Glossary & Sources
The DrillDown: Bridging the Informauon Gap
Contents
...p 7
...p 10
...p 12
...p 13
p 16
...p 21
...p 23
..p 28
...p 35
...p 36
...p 38
...p 40
...p 42
...p 98
FAQp. 34, Glossary & Sourcesp. 90.
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> The City of St. Louis and North County Study Area have a
combined income density 6.7 umes that of the 8 county metro
area.* The City alone has an income density over 11 umes that
of the metro area. This income density creates unique
opportuniues for retailers to capture more demand with a
smaller trade area, or even greater demand with the typical
trade area than they would require in the metropolitan area.
> The City of St. Louis is poised to capture $613 million dollars
spent on retail outside of its boundaries, while it already
captures a proporuon of restaurant revenue from the
surrounding areas.
> Overall, food access is limited for many residents in the Study
Area. 45% of residents are underserved, with access to less
than 3 square feet of fullservice grocery store space per capita.
Over 19% of residents live in areas that have limited access to
fullservice grocery and could support the upgrading of limited
service corner stores into fullservice stores or new fullservice
grocery stores.
> Nearly half of residents live closer to a checkcasher, pawnshop or
payday lender than to a bank. The North County Study Area has 75%
more of these nontradiuonal lenders per household than the City.
> One out of three residents do not show a credit record; credit records
are used to provide access to everything from a house, to a car, to a
job.
> In 9 subareas, the number of households grew between 2008 and
2010, according to esumates derived from United States Postal
Service (USPS) delivery points.
> 12 subareas saw an increase in the number of businesses between
2008 and 2010.
Execuuve Summary
DrillDown Highlights
*The St. Louis metro area is dened here as the 8 county planning region, including St. Charles County, City of St. Louis, St. Louis County, Franklin County, Jeerson County,
Madison County, St. Clair County and Monroe County.
FAQp. 34, Glossary & Sourcesp. 90.
St. Louis DrillDown
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MARKET SIZE
The Neighborhood Market DrillDown esumates the total populauon in the
St. Louis Study Area at 703,213, 5 percent (32,776 people) above the Census
2010 populauon esumate of 670,437, which is consistent with fact that a
large poruon of study area block groups are in hard to count census tracts.
This compares to the 2000 Census gure of 717,650.
Between 2000 and 2010 the decennial Census found a signicant populauon
decline across the City and the County, with a loss of 47,213 people within
the Study Area. This loss is auributed to a notable decrease in average
household size and an increase in vacancy rates.
Counter to this trend, the CBD, Central Grand and Euclid saw an increase in
populauon over the decade, according to Census gures.
Between 2008 and 2010, nine subareas saw an increase in United States
Postal Service residenual delivery counts, which suggests that the number of
households increased in these areas.
MARKET STRENGTH
The DrillDown reveals higher incomes than tradiuonal esumates indicate in
the St. Louis Study Area: esumates for both average household income
($57,051) and median household income ($42,062) exceed 2011 tradiuonal
market esumatesby 13 percent and 11 percent, respecuvely. According to
Census esumates, income was stable over the decade.
Aggregate household income, totaling an esumated $16.9 billion, exceeds
the 2011 tradiuonal market esumate by 20.5 percent ($2.9 billion). Study
Area aggregate income is bolstered by $713 million in informal economic
income, comprising 4.4 percent of the total study area economy.
South Grand, Kingshighway, Cherokee, South Broadway, Manchester and
Marun Luther King subareas have high income densiues compared to the
Study Area, but are overlooked by tradiuonal market indicators that use
average or median income.
Income density in the St. Louis Study Area, esumated at $131,851 is 6.7
umes the 8 country metro area average of $19,741.
Supporung the posiuve income dierence observed throughout the Study
Area, the average income of new home ownersthose who purchased
homes between 2006 and 2010consistently exceeds the average income
of area residents in 2000. For example, in 2010, the average income of new
home buyers was $60,460, 30 percent above the average income of Study
Area residents in 2000 (in real dollars).
MARKET POTENTIAL
Retail and Restaurant Services
Residents in the St. Louis Study Area spend $4 billion on retail purchases and
services annually. Retail revenues within the Study Area total $4.2 billion.
In the City of St. Louis, there is $615 million unmet retail demand, which is
nearly thirty percent of total retail expenditures. Suggesung that one out of
every three dollars is not captured by the current retail mix in the City. These
ndings suggest the City of St. Louis could support more retailers.
The Marun Luther King, South Grand, Normandy School District and
Bellefontaine/Riverview areas have signicant unmet retail demand, with
over $50 million in unmet demand.
Execuuve Summary
Market Size, Strength & Potenual
FAQp. 34, Glossary & Sourcesp. 90.
St. Louis DrillDown
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Study Area restaurants auract dollars from beyond the Study Area. Tourist
and visitor spending, esumated at $28.4 million annually, comprises roughly 4
percent of restaurants total annual earnings ($689 million).
Fourteen subareas have unmet restaurant demand. Jamestown, Marun
Luther King, Normandy School District and Bellefontain/Riverview, South
Grand and Jennings subareas have signicant leakage, where over 50 percent
of expenditures are not captured within the neighborhoods.
With respect to apparel demand, the DrillDown nds $123.4 million in Study
Area leakage. These dollars represent resident demand that is currently not
being met by exisung retailers in the Study Area, which could support
363,447 addiuonal square feet of apparel retail.
Grocery Access
Introducuon
RHCDA
611 Olive Street, Suite 1641
St. Louis, MO 63101
314.231.9400
eleanor@rhcda.com
Social Compact
218 D Street SE, 2nd Floor
Washington, DC, 20003
202.547.2581
info@socialcompact.org
Housing and Community Soluuons, Inc.
245 Union Blvd., Suite L
St. Louis, MO 63108
314.367.3147
erics@housingandcommunitysoluuons.org
ST LOUIS FEDERAL RESERVE: DATADRIVEN STRATEGIES
In October 2011, the Federal Reserve Bank of St. Louis convened nearly 200 par
ucipants to a symposium on neighborhood indicators and datadriven strategies.
Parucipants came together in working sessions to develop a vision, dene focus
areas, idenufy barriers, formulate soluuons and dene next steps in the areas of
nancial service access, food access, the business environment and philanthro
py.
Guest speakers included Alyssa Lee, Director of Social Compact; Tim Bray, Direc
tor of The Insutute for Urban Policy Research at the University of Texas at Dallas;
John Weidman, Deputy Execuuve Director of the Food Trust in Philadelphia; and
Trinita Logue, President of IFF in Chicago.
Addiuonal informauon and videos from the 2011 St. Louis Federal Reserve Drill
Down conference are available online: hup://www.stlouisfed.org.
COMMUNITY ENGAGEMENT: HARNESSING LOCAL INSIGHT & DEMOCRATIZING
DATA
In December 2011, Social Compact, RHCDA and Housing and Community Solu
uons, Inc. conducted 6 community meeungs across St Louis, with the dual pur
pose of collecung community input and sharing the DrillDown methodology with
community members. The meeungs focused on how Social Compact develops
its neighborhood proles, the methodology behind the neighborhood indicators
and the use of these indicators in community development work.
The North City, South City and North County community meeungs focused on
the ndings for each of the areas, with parucipauon from organizauons and indi
viduals living and/or working in each area. Two themauc meeungs were con
ducted, focusing on grocery and nancial service indicators and ndings.
FAQp. 34, Glossary & Sourcesp. 90.
St. Louis DrillDown
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The St. Louis Neighborhood Market DrillDown Study Area
includes the City of St. Louis and North St. Louis County. The 25
subareas are listed below, and more detailed maps are
provided in the neighborhood snapshots at the end of the
report. The North County Study Area was selected to include
the St. Louis County's Neighborhood Stabilizauon Program
target areas and North County incorporated areas.
NOTE: The St. Louis Neighborhood Market DrillDown study area
neighborhoods are dened by census block group boundaries and may
therefore vary slightly from other more commonly known deniuons.
St. Louis County
0 5 10
Miles
Legend
City of St. Louis
St. Louis County
DrillDown Study Area
MSA Block Groups
City of St Louis
Study Area Overview
FAQp. 34, Glossary & Sourcesp. 90.
St. Louis DrillDown
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Map 11
Market Potenual Indicators
Financial Services
Nontradional Financial Service Providers
(Pawnshops, Payday Lenders, Check Cashers)
Map depicts nontradiuonal nancial service insutuuons (pawnshops, payday lenders
and check cashing establishments) in the study area only. Points may be overlapping.
1 out of 3 households lack a credit record.
% of Households Lacking Credit Histories Ci ty of St Loui s 43.7%
North County Study Area 25.1%
1 Eucl i d 65.1% 14 Ferguson 31.6%
2 Central Grand 63.0% 15 Hampton 31.1%
3 Central Busi ness Di stri ct 61.6% 16 North Broadway 29.6%
4 Manchester 50.5% 17 Normandy School Di stri ct 28.7%
5 Cherokee 49.1% 18 Spani sh Lake CDP 28.7%
6 Fl ori ssant Corri dor 48.1% 19 Jamestown 25.7%
7 North Grand 45.8% 20 West Ferguson 24.8%
8 South Grand 45.7% 21 Jenni ngs 24.0%
9 Ki ngshi ghway 43.9% 22 Bel l efontai ne/Ri vervi ew 23.5%
10 Marti n Luther Ki ng 43.4% 23 North Uni versi ty Ci ty 22.7%
11 South Broadway 41.7% 24 Hal l s Ferry/Chambers 22.3%
12 Natural Bri dge 35.8% 25 Fl ori ssant 67 14.6%
13 Overl and/Ri tenour 32.1% . .
In some cases, the lack of a credit record ued to a residence may indicate a new resident,
rather than a lack of a credit history. Therefore, areas with an substanual inux of new
residents may show a larger percentage of households without an associated credit record.
Saint Louis Grocery Gap
FAQp. 34, Glossary & Sourcesp. 90.
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