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

National Housing Conference1801 K Street, N.W.

Suite M-100Washington, DC 20006-1301

Tel: (202) 466-2121Web site: http://www.nhc.org