Post on 25-Dec-2015
Workforce Housing in Minnesota:Workforce Housing in Minnesota:Getting it DoneGetting it Done
Conrad E. Egan
President & CEO
National Housing Conference
HousingMinnesota HousingMinnesota
November 24, 2003
America’s Working Families
and the Housing Landscape
Artwork is owned by and being used with the permission of the Neighborhood Reinvestment Corporation. Neighborhood Reinvestment Corporation owns the copyright to such artwork.
New Century Housing
Center for Housing PolicyNovember 2002
In 2001, the most recent data available, 14.4 million American families –-or one in seven households–-had “critical housing needs.” That is, they paid more than half their household’s income for housing and/or lived in substandard housing conditions.
One in Seven American Families Have CriticalHousing Needs
20.5%(3.0 million)
28.8%(4.1 million)
33.5%(4.8 million)
17.2%(2.5 million)
Low- to Moderate-Income Working Families
Marginally Employed
Non-Elderly, Not Working
Elderly, Not Working
4.8 Million Low- to Moderate-Income Families with Critical Housing Needs Work the
Equivalent of a Full-Time Job.
Cost is the culpritMost Working Families, with Critical Housing
Needs, Pay at Least 50 Percent of Their Income for Housing
2001
Severe Cost Burden83.4%
Both2.0%
Severely Inadequate18.5%
Homeowners Account for More Than Half of
Working Families with Critical Housing Needs
47%
53%
1997 1999 2001
Homeowners 51.5% 49.6% 53.0%
Renters 48.5% 50.4% 47.0%
2001
URBAN SUBURBAN RURAL
1997 1999 2001
Central City 40.1% 43.1% 39.5%
Suburbs 42.3% 40.0% 42.5%
Non-Metropolitan 17.5% 16.9% 18.0%
Critical Housing Needs Are Not Only a “City” Problem
Compared to Native-Born Low- to Moderate-Income Families, Immigrant Families with Critical Housing Needs are More Likely…
26.9%
21.4%
7.4%6.3%
15.3%
28.8%
10.9%
6.0%
38.0%39.1%
<30% of Median 30%-50% ofMedian
50%-80% ofMedian
80%-Median Median - 120%
Immigrants
Native-Born
Are More Likely to Have Incomes Below 50% of the Local Median.
Are More Likely to Depend on More than One Wage Earner.
Immigrants
Native-Born
57.1%
65.8%
33.8%
27.5%
6.9%
5.1%
Have Similar Median Incomes But …
Are More Likely to Live in Expensive Areas.
Annual Income
Immigrants $22,000
Native-Born $22,000
Average Rent Median Rent
Immigrants $870 $809
Native-Born $771 $755
Compared to Native-Born Low- to Moderate-Income Families, Immigrant Families with Critical Housing Needs are More Likely…
Are Less Likely to become Homeowners.
Immigrants Native-Born
Are More Likely to be Minority Households. Are More Likely to be Households with Children.
49.3% Immigrants
25.4% Native-Born
13.2% Immigrants
18.0% Native-Born
12.1% Immigrants
25.6% Native-Born
25.5% Immigrants
31.1% Native-Born
Couple with Children
Single Female with Children
Single-Person Household
More Than One Person with no Children
Own45% Rent
55%
Rent45%
Own55%
3.5%
7.8%
18.8%
69.9%
24.3%
48.0%
8.8%
18.9%
Other
Hispanic
Black
White
Immigrant
Native-Born
Nearly Six in Ten Working Immigrant Families with Critical Housing Needs are Hispanic
Where 1.2 Million Immigrant Working Families with Critical Housing Needs Are From…
Canada/Europe 15.9 3.0
Latin America (except Mexico) 19.3 11.9
Mexico 15.6 28.2
Asia 17.2 9.0
Other 20.7 7.4
Percent in Group with Critical
Housing Needs
Percent in Group
Crowded
Rates of Critical Housing Needs and Crowding for Immigrant Working Families
$49,703
$41,080 $40,970
$30,670
$17,150 $17,900
What is Happening in the United States:Homeownership Market
Annual IncomeNeeded
ElementarySchool Teacher
Police Officer LicensedPractical
Nurse
RetailSalesperson
Janitor
2001 Median Priced Home
$156,000
Area Median Annual Income (2001)
$13.87
$8.24 $8.61
What is Happening the United States:Rental Market
2001 Fair Market Rent
2BR $721/month
Area Median Hourly Wage (2001)
Hourly Wage Needed to Afford
2 BR
Retail Salesperson Janitor
Minneapolis – St. Paul, MN-WIHomeownership Market
Annual IncomeNeeded
ElementarySchool Teacher
Police Officer LicensedPractical
Nurse
RetailSalesperson
Janitor
2001 Median Priced Home
$169,000
Area Median Annual Income (2001)
$53,844
$43,560
$48,760
$33,110
$18,360$20,280
$12.96
$16.58$15.92
$8.83$9.75
Minneapolis – St. Paul, MN-WI Rental Market
2001 Fair Market Rent
1BR $674/month2BR $862/month
Area Median Hourly Wage (2001)
Hourly Wage Needed to Afford
1 BR 2 BR
Retail Salesperson
JanitorLicensed Practical
Nurse
National Housing ConferenceSenior Executive Roundtable Series
New Orleans, LA – April 9, 2001
Seattle, WA – July 24, 2001
Portland, OR – July 26, 2001
St. Paul, MN – September 6, 2001
San Diego, CA – March 21, 2002
Philadelphia, PA – May 30, 2002
Providence, RI – July 29, 2002
Milwaukee, WI – October 30, 2002
Charlotte, NC – April 3, 2003
Columbus, OH – June 2, 2003
Portland, ME – August 6, 2003
Houston, TX – October 29, 2003
Local Barriers to Affordable Housing: Regulation, Resources and Resistance
The Regional Approach to Affordable Housing:Is the Time Ripe?
Private Sector Involvement in Affordable Housing: The Vital Partner
Federal Involvement in Affordable Housing: Rethinking the Federal Role
OUTLOOK FOR THE FUTURE
• Limited Federal Resources
• Increased State and Local Level Activities
• Growing Private Sector Involvement?
• Greater Public Awareness and Support