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How Well are Minnesotans Housed?Housing Trends and Policy in Minnesota

Sarah Berke, Director of Strategy & PartnershipsAtticus Jaramillo, Research Associate

Agenda• About MHP• Housing data trends• Where to find the data• Policy updates:

• Minnesota legislative session• Federal and regional policy issues

• Communicating about housing data

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MHP’s missionMinnesota Housing Partnership (MHP) convenes, guides, and supports a diversity of

partners working to improve conditions of home and community. Building on decades of experience, we strengthen development capacity and promote policies

that expand opportunity, especially for people at the lowest income levels.

Our history

• MHP is 25+ years old• Providing technical assistance for HUD federal programs since 1995

in Minnesota, plus USDA Rural Development technical assistance.• Since 2009 MHP has been providing technical assistance across the

country in several different HUD programs including NSP, HOME, CDBG, ICDBG, CDBG-DR, Rural Capacity Building, and HUD Sustainable Planning Grants.

mhponline.org

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Our Work

Capacity Building Strengthen the ability of organizations to build and preserve housing and community assets. From innovative community planning practices to knowledge of complex federal housing programs, our financial and technical expertise benefits state and local organizations.

ResearchProvide original research and education resources to generate public support of vital communities and affordable housing.

Policy WorkDrive efforts to secure the policies and funding needed at the regional, state, and federal levels to advance local housing and community development.

mhponline.org

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Overview of Housing Trends

mhponline.org

Cost Burden Homelessness

Workforce & Senior Needs

DisparitiesHomeownership

Rental Need

Increasing Housing Cost Burden

• Cost Burden = 30% or more of your annual income going towards housing

Percent Change in Proportion of Minnesota Residents Experiencing Housing Cost Burden (2000-2014)

42% All Residents

25% Renters

33% Owners

Housing Cost Burden in Minnesota from 2000-2014

16.6%

24%

36.9%46%

22.4%30%

0%

10%

20%

30%

40%

50%

60%

2000 2002 2004 2006 2008 2010 2012 2014

Owners Renters All Residents

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Cost Burden by Occupation

$50,562

$33,400 

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

ElementarySchool Teacher

LiscensedPractical Nurse

Police Officer Food Preparation Retail SalesPerson

Income Needed to Own Median Priced Home in 2014

Rental Need Across Minnesota

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Renter Cost Burden by Income

Under $20,000 $20,000 ‐ $34,999 $35,000 ‐ $49,999 $50,000 ‐ $74,999 $75,000 or More

Percent of Earnings Towards Housing by Income Group in 2014

Less than 20% 20% - 29% 30% or More

4%

12%

84%

7%

24%

68%

20%

47%

33%

49%

39%

12%

79%

18%

2%0%

10%

20%

30%

40%

50%

60%

70%

80%

90% 174,971

121,35388,759

89,524

80,107

 Less than $20,000: $20,000 to $34,999:

$35,000 to $49,999: $50,000 to $74,999:

$75,000 or more:

Median Rent & Renter IncomeChange in Rent & Renter Income, MN (2000-

2014)

Rent +6%

Income -16%

2.3%

1.7%

2.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2010 2011 2012 2013 2014 2015

Vacancy Rate Vacancy Rate, $1000 or Less

Quarterly Unemployment Rate

Twin Cities Rental Vacancy RateMarquette Advisors, 2010-2015

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Units Issued New Building Permits

28.3%24.3%

42.9%35.8% 37.1%

42.3%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2010 2011 2012 2013 2014 2015

New Building Permits Issued in the Twin CitiesAmerican Community Survey, 2010-2015

1 Unit Buildings

Units in 2+ UnitBuildings

Minnesotans Experiencing Homelessness on a Single Night

3,079

4,553

5,645

7,696 7,854 7,751

9,65410,214

9,312

1991 1994 1997 2000 2003 2006 2009 2012 2015

Wilder Statewide Homelessness Study Data

Between 2012 & 2015, the number of people experiencing homelessness decreased by 9 percent. However the number of homeless individuals living in Minnesota is still higher than it was prior to the recession

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Homelessness in Minnesota, Wilder

• Children – any person under 18 experiencing homelessness with a parent or guardian

• Unaccompanied Youth – any person under the age of 18 identified as homeless without a parent or guardian

Unaccompanied Youth & Children Experiencing Homelessness

Owner Cost Burden by Income

Under $20,000

9%14%

77%

28%22%

49%

40%

22%

39%45%

31%25%

69%

24%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

$20,000 ‐ $34,999 $35,000 ‐ $49,999 $50,000 ‐ $74,999 $75,000 or More

Percent of Earnings Towards Housing by Income Group 109,339

160,817

182,816

306,269

759,127

 Less than $20,000: $20,000 to $34,999:

$35,000 to $49,999: $50,000 to $74,999:

$75,000 or more:

Less than 20% 20% - 29% 30% or More

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Homeownership

72% 72% 72% 72%

75%

77%

72%

65%

67%

69%

71%

73%

75%

77%

79%

1960 1970 1980 1990 2000 2003 2014

Minnesota Homeownership Rate Since 1960U.S. Census Bureau & American Community Survey 1960-2014

Mortgage Delinquencies & Foreclosures

7,258

1,615

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2010 2011 2012 2013 2014 2015

Number of Foreclosures Filed in Minnesota 2010-2015, Quarterly

Greater MN

St. Cloud

Rochester

Duluth

Twin Cities

Since 2008, the total number of foreclosures in Greater Minnesota dropped by 54.2% and the number of foreclosures in the Twin-Cities dropped by 76.6%

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Workforce Housing in Minnesota

$1,964

$818

$589

$416

$244

$707

$894

$0 $500 $1,000 $1,500 $2,000

Affordable to median income family

Affordable to median income renter household

Affordable to extremely low income household

Affordable to full-time minimum wage earner

Affordable to SSI recipient

One-bedroom Fair Market Rent

Two-bedroom Fair Market Rent

Rents Minnesota Households Can Afford, Compared to Fair Market Rents

Out of Reach 2015. Minnesota Housing Partnership and National Low Income Housing Coalition.

Number of Hours Per Week Minimum Wage Earners must work to Afford Median Priced 1 BR apartment

Workforce Housing & Transportation

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Aging Workforce Housing, Greater MNRenter Occupied - 2015Owner Occupied - 2015

Senior Housing Needs in MN

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1950 1960 1970 1980 1990 2000 2010 2014 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065

Population Age 65 Years and Older Minnesota, 1950-2045

Percent of Total PopulationTotal 65+ Population

47,567 47,785

52,316

53,905 54,44853,605

55,378

53,610

55,856

2006 2007 2008 2009 2010 2011 2012 2013 2014

Seniors Experiencing PovertyMinnesota, 2006-2014

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Senior Housing Needs in MN

Racial/Ethnic Disparities In Housing

77%

55%46% 43%

24%

White Asian AmericanIndian/Alaskan

Native

Hispanic/Latino Black

Homeownership Rate by Race/EthnicityMinnesota, 2014

There is only a 1 in 18 chance people who

identify as White are extremely low-income (ELI), but there is a 1 in 5 chance that people who

identify non-white or Hispanic/Latino are ELI

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Racial/Ethnic Disparities in Homelessness

39% 35%43% 36% 39% 42%

86%

42% 47%40%

43% 40% 38%

5%9% 11% 9%11% 11% 10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1997 2000 2003 2006 2009 2012 2012

Minnesotans Experiencing Homelessness by Race & Ethnicity, 1997-2012 vs. General MN Population, 2012

Not specified

Asian or Pacific Islander

Multi-racial or other

American Indian

African American & African Native

White or Caucasian

Note: Individuals in any racial or ethnic category may also be Hispanic or Latino.Data Sources: Wilder Research Homelessness Study 1997-2012; American Community Survey, (ACS) 2012.

Racial & Ethnic Disparities in Housing

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

1960 1970 1980 1990 2000 2010 2011 2012 2013 2014 2020 2025 2030 2035

Projected Population for People of ColorMinnesota State Demographic Center, 2014

Projected Growth

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Where to find research and policy toolshttp://mhponline.org/policy/tools

http://homesforallmn.org/

Tools you can usehttp://mhponline.org/policy/tools/communications/letters‐to‐the‐editor

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Tools you can usehttp://mhponline.org/publications/county‐profiles/2015http://mhponline.org/publications/legislative‐district‐profiles

Update from the 2016 Minnesota legislative session

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http://homesforallmn.org/supporters

Bonding in recent history

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2016 Bonding Bill

$600M ?$1,400M

? $1,800M

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Other housing issues at the legislature

• Workforce Homeownership

• Landlord Guarantee Fund• Tax Credit proposals

Federal policyhttp://mhponline.org/policy/federal

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Regional policy

Households Spending >50% Income on Housing

Communicating about affordable housing

Level 1-Values• Opportunity• Safety• Stewardship

for future generations

Level 2-Issue Areas• Housing • Environment• Economic

stabilization• Etc.

Level 3-Policies• Inclusionary

Zoning• Tax

Abatements• Housing Trust

Funds

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Communicating about affordable housing

Instead of:

• Affordable housing

• Housing projects

• Low‐income housing

Try:

• Affordable homes

• Homes affordable to all

• Affordable places to live

• Developments

Because:

We’re talking about real people who live in homes. The word “home” is associated with a set of values. It connotes safety and stability. It’s where you raise your family. 

Develop messages around aspirations & solutions

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Solutions exercise

1 - 2 sentences on the problem

1 sentence on why it matters (value statement)

4 sentences on the solution

Thank you!

Share your business card for occasional email updates from the MHP Connect list.

Sarah Berke, Director of Strategy & Partnershipssarah.berke@mhponline.org

Atticus Jaramillo, Research AssociateAtticus.Jaramillo@mhponline.org