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The U.S. Department of Housing and Urban Development defines housing as affordable only if it costs a household no more than 30 percent of its gross income. While the recent Census report demonstrates high rates of homeownership among Minnesotans and residents of the Twin Cities, the report also shows dramatic increases in the number of households that pay 30 percent or more of their income on housing. Thirty-three percent of owners with mortgages, 13 percent of owners without mortgages, and 47 percent of renters in the Twin Cities metro area spent 30 percent or more of household income on housing. “It is troubling that for many workers a full-time job does not bring enough income to afford a home or apartment. This is not good for families or the state’s economy,” said Chip Halbach, executive director of the Minnesota Housing Partnership.The current need for affordable housing is likely to grow as new residents move into the Minneapolis-St. Paul Metropolitan area. The Metropolitan Council has projected that one million new residents will live in the Twin Cities by 2020. In their recent study, the Council suggests that 50,661 new units of affordable housing will be required by 2020. The numbers do not take into account existing affordable housing needs, but rather the projected need for new residents. The report breaks down projected housing needs by municipality and goals have been set for communities in the seven-county region. These goals place the cities of Minneapolis and St. Paul at the top of the list with a need for 4,088 and 2,625 new affordable housing units respectively. Lakeville, Prior Lake, and Shakopee round out the top five in the need for new affordable housing units prior to 2020, with numbers projected to be 2,260, 2,138, and 2,105—or a total of 12.9 percent of all units needed in the metro area.The Metropolitan Council’s projections are reinforced by research that shows large amounts of job growth outside of the central business districts. According to a report by Luce, Orfield and Mazullo prepared for the Center of Urban and Regional Affairs (CURA), job growth between 1990 and 2000 was the fastest in outer ring areas such as Maple Grove (895 percent job growth), Woodbury (189 percent job growth) and Shakopee (83 percent job growth). Other suburban communities that are closer to the urban core also had large increases; Brooklyn Park, for example, had an 81 percent increase. These numbers are in stark contrast to the Minneapolis central business district that saw only a 10 percent increase or the St. Paul central business district that saw a 5 percent decrease in jobs during the decade. Job growth comes hand in hand with a need for new workers, and a need for new workers creates a need for new housing stock. The Twin Cities is definitely facing a challenge, but one that is not insurmountable. Twin Cities Habitat for Humanity recognizes the need to increase productivity in suburban regions and has been able to respond. By the end of 2007, 48 TCHFH homes will have either been sold or under construction in Woodbury alone. This year has seen the first Habitat build ever in Scott County as part of the City of Savage’s Hamilton Edge development. Additional large-scale opportunities have arisen in Brooklyn Park, Chaska, and Ramsey. Many suburban communities recognize that with their growth in population and employment new housing stock is needed for families that earn less than the area median income. In the years ahead, TCHFH expects to be working in these cities with increased frequency. These opportunities do not come without cost. In 1995, the vast majority of TCHFH’s lots were acquired for a dollar apiece from local cities and counties. Today the average lot costs $43,000. As 2020 approaches and the Twin Cities welcomes one million new residents, the well of buildable land that Habitat can afford to purchase is beginning to dry up. Twin Cities Habitat for Humanity is aggressively pursuing not only more land beyond the urban core but also more strategic alliances with market-rate builders such as Centex and other non-profit organizations. The cost of housing has increased along with the area’s population, but through careful planning and the hard work of countless volunteers and donors, Twin Cities Habitat for Humanity will continue to be at the front of the fight to make decent, affordable shelter for all people a matter of conscience. Contributed by Karl Batalden For more information: U. S. Census’ American Community Survey (mid-decade reports)http://factfinder.census.gov To view affordable housing goals for your community, view the Metropolitan Council’s report2011-2020 Allocation of Affordable Housing Need by City/Townshiphttp://www.metrocouncil.org/planning/Housing/HousingNeed.pdf Access to Growing Job Centers in the Twin Cities Metropolitan AreaCenter for Urban and Regional Affairshttp://www.cura.umn.edu/reporter/06-Spr/Luce_et_al.pdf The Next Decade of Housing in Minnesotahttp://www.mhfa.state.mn.us/about/BBC_final_report.pdf |
Minnesota tops the nation in homeownership rates at 76 percent, according to the U.S. Census’ recent mid-decade reports released in early October. However, for housing to remain strong and viable in the Twin Cities, it is necessary to examine some facts and figures about the lack of affordable housing opportunities in the region. 
