Architecture, Ask a Designer, Multifamily Residential

Your Guide to Multifamily Feasibility Studies

If you’ve been thinking about developing a multifamily project, whether it’s new construction or a conversion, apartments or townhomes, you’ve probably heard someone mention the need for something called a “feasibility study.” But what exactly is a feasibility study, and why is it such a crucial first step?

Jill Burdeen

December 23, 2025

The world of real estate development can feel overwhelming, especially when you’re just starting to explore what’s possible. There’s zoning to navigate, construction costs to consider, and market demands to evaluate all before you even know if your project can become reality.

That’s where a feasibility study comes in. Think of it as your project’s foundation. It’s the basis upon which everything else is built. Let’s walk through what feasibility studies are, why they matter, and how they can set your project up for success from day one.

What is a multifamily feasibility study, really?

A feasibility study is your project’s reality check. It’s a comprehensive report that takes your desired development goals and tests them against three crucial realities.

1. What is physically possible on your site.
2. What local regulations will allow.
3. What the market actually wants.

We think of feasibility studies as knowledgeable friends who tell you, honestly and kindly, whether your dream project can happen and, if so, how to make it work best.

Five Questions Feasibility Studies Should Answer

A feasibility study answers the fundamental questions every developer needs to ask.

• What can I actually build here? Not just what you’re hoping for, but what the site and regulations will realistically allow.
• Where exactly can I build it? Understanding your true buildable area after all the constraints are factored in.
• What will it likely cost? Creating a foundation for realistic budgeting, once a contractor is involved.
• What challenges should I expect? Identifying potential roadblocks while they’re still manageable.
• Will people want to live in what I'm planning? Ensuring your project meets genuine market demand.

The goal isn’t to crush your dreams, it’s to help you build them on solid ground.

The three key areas every feasibility study should cover.

Not all feasibility studies provide the same value. There is some crucial information it should include to make it useful when considering the development potential of your site.

Physical Conditions: Understanding Site

Your site analysis goes far deeper than what you can see from the street or even from walking the property. A thorough physical assessment looks at your site’s topography, access and right-of-way conditions, adjacencies and onsite features, existing infrastructure, and environmental considerations.

Regulatory Conditions: The Rules of the Game

If physical conditions are about what your site can handle, regulatory conditions are about the rules and laws local jurisdictions enforce, and you must follow, to be allowed to build.

This includes zoning and building code regulations, as well as the local entitlement and construction permit processes. This is often the most complex and mysterious part of development, but it’s also where good preparation pays dividends.

Economic Realities: Making the Numbers Work

To accurately analyze a project’s financial viability, a contractor needs a clear understanding of the project context and scope. Providing detailed objectives and clear plans allows a contractor to perform their economic analysis to help determine if a project is financially viable.

The hidden benefits of a feasibility study that you might not expect.

Beyond the obvious benefit of understanding whether your project is viable, feasibility studies provide several often-overlooked advantages.

Credibility with Financial Partners

Banks and investors review countless development proposals. A well-prepared feasibility study immediately sets you apart as a serious, prepared developer. It demonstrates that you understand the complexities involved and have thought through the key risks and opportunities.

Smoother Approval Processes

Planning departments appreciate developers who come prepared. When you can demonstrate that you understand local regulations and have designed your project accordingly, you’re much more likely to have a smooth approval process with fewer costly revisions.

More Accurate Preliminary Pricing

A detailed feasibility study provides contractors with the information they need to give you accurate pricing. This leads to fewer surprises and more accurate project planning.

Better Design Decisions from the Start

Understanding your project’s constraints and opportunities from the beginning allows you to make smarter design decisions. You can optimize your unit mix, amenity package, and building design for both regulatory compliance and market appeal.

Proactive Problem-Solving

Perhaps most importantly, a feasibility study helps you identify and plan for potential issues before they become expensive emergencies. Every challenge you identify and address in the planning phase saves money and stress during construction.

When to commission a feasibility study.

Getting the timing right for your feasibility study can make a significant difference in both its value and your project’s success.

Before You Purchase

If you haven’t bought your development site yet, this is the perfect, and most ideal, time for a feasibility study. Understanding the site’s true development potential gives you crucial negotiating leverage and helps ensure you don’t overpay for land that can’t support your vision.

Before Major Design Investment

If you already own the property, commission your feasibility study before investing heavily in architectural design. Whether you want to develop the property yourself or plan on selling it, understanding the overall development capacity ensures informed decision making.

Before Bringing on Investors

Serious investors will expect to see a feasibility study anyway. Having one prepared shows professionalism and helps you answer their questions with confidence and specific data.

Before Permit Applications

A feasibility study can identify potential permitting challenges before you submit applications, potentially saving you from costly revisions and resubmissions.

What makes a feasibility study worth your investment?

We think feasibility studies are invaluable in the early stages of multifamily development. The investment in a feasibility study is modest compared to the potential costs of proceeding with incomplete information.

Comprehensive and Detail-Oriented Site Analysis

The best studies catch the details that can derail a project later. They identify that utility easement running through your planned courtyard, flag the heritage tree that you may not be able to be removed, and spot the overhead power lines that will limit your building height. They're like having an experienced architect walk your site with you and point out everything you need to consider.

Clear Risk Identification

A good feasibility study tells you what you need to know, not just what you want to hear. Quality studies don’t just highlight opportunities; they identify potential deal-breakers while they’re still manageable.

Maybe your site requires a zoning variance that’s historically difficult to obtain, or topographical conditions suggest shoring costs could be higher than anticipated. It’s better to understand these challenges early when you can plan for them or decide they’re not worth the risk.

Actionable Recommendations

The best feasibility studies don’t just identify problems, they suggest solutions. If standard surface parking won’t work on your site, what about structured parking or shared parking arrangements? If your preferred unit mix doesn’t match market demand, what alternatives might work better?

Feasibility studies are an important early step in your multifamily project. They help you to build something that will not only get approved and successfully constructed but also serves your community’s housing needs.

At Board & Vellum, we believe good projects start with good information. If you’re considering a multifamily development and want to understand what’s possible on your site, we’d love to help you explore the opportunities and challenges ahead.