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Appendix G: Development Feasibility Everett Housing Action Plan G-14 Exhibit 14. Current Improvement Values per Acre, UR4 Zone. Source: BERK, 2021.  Construction costs. Construction costs are based on available regional sources of data on average costs in the region and are included in Exhibit 15. Note that this can be subject to significant variation, depending on the quality of the design, special design features, and potential site limitations.  Market conditions. Given the instability in the housing market during the COVID-19 pandemic, general assumptions about mortgage and loan rates, purchase prices, rents, and vacancies are developed using data from early 2019. These are informed by the findings from the previous section, and where applicable, major parameters rely on a review of comparable projects within Everett to inform estimated values. Values used as model inputs are provided in Exhibit 15. From this analysis, the returns are highlighted for each prototype project. These results are provided in two ways, depending on tenure:  Owner-occupied properties are evaluated in terms of cash-on-equity (COE) return, which evaluates the percent return versus the initial equity invested. This is appropriate given the short- term nature of the investment, with sales after completion.  Rental properties are assessed versus their internal rate of return (IRR), which accounts for the longer hold period and impacts resulting from receipts of revenue over time.