How Well are Minnesotans Housed? Housing Trends and Policy in - PowerPoint PPT Presentation

How Well are Minnesotans Housed? Housing Trends and Policy in Minnesota Sarah Berke, Director of Strategy & Partnerships Atticus Jaramillo, Research Associate

Agenda • About MHP • Housing data trends • Where to fj nd the data • Policy updates: • Minnesota legislative session • Federal and regional policy issues • Communicating about housing data

MHP’s mission Minnesota 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 di ff erent HUD programs including NSP, HOME, CDBG, ICDBG, CDBG-DR, Rural Capacity Building, and HUD Sustainable Planning Grants. mhponline.org

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 fj nancial and technical expertise bene fj ts state and local organizations. Research Provide original research and education resources to generate public support of vital communities and a ff ordable housing. Policy Work Drive e ff orts to secure the policies and funding needed at the regional, state, and federal levels to advance local housing and community development. mhponline.org

Overview of Housing Trends Homelessness Cost Burden Rental Need Workforce & Senior Needs Homeownership Disparities mhponline.org

Increasing Housing Cost Burden • Cost Burden = 30% or more of your annual income going towards housing Housing Cost Burden in Minnesota from 2000-2014 Percent Change in Proportion of Minnesota Residents Experiencing Owners Renters All Residents Housing Cost Burden (2000-2014) 60% 25% Renters 50% 46% 36.9% 40% 33% Owners 30% 30% 22.4% 24% 20% 42% All Residents 16.6% 10% 0% 2000 2002 2004 2006 2008 2010 2012 2014

Cost Burden by Occupation Income Needed to Own Median Priced Home in 2014 $70,000 $60,000 $50,562 $50,000 $40,000 $33,400 $30,000 $20,000 $10,000 $0 Elementary Liscensed Police O ffi cer Food Preparation Retail Sales School Teacher Practical Nurse Person

Rental Need Across Minnesota

Renter Cost Burden by Income Percent of Earnings Towards Housing by Income Group in 2014 80,107 Less than 20% 20% - 29% 30% or More 174,971 90% 84% 89,524 79% 80% 68% 70% 88,759 121,353 60% Less than $20,000: 49% 47% 50% $20,000 to $34,999: 39% $35,000 to $49,999: 40% 33% $50,000 to $74,999: 30% 24% $75,000 or more: 20% 18% 20% 12% 12% 7% 10% 4% 2% 0% Under $20,000 $20,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 or More

Median Rent & Renter Income Change in Rent & Renter Income, MN Twin Cities Rental Vacancy Rate (2000-2014) Marquette Advisors, 2010-2015 9.0% 8.0% Rent +6% 7.0% 6.0% Income -16% 5.0% 4.0% 2.9% 3.0% 2.3% 2.0% 1.7% 1.0% 0.0% 2010 2011 2012 2013 2014 2015 Vacancy Rate Vacancy Rate, $1000 or Less Quarterly Unemployment Rate

Units Issued New Building Permits New Building Permits Issued in the Twin Cities American Community Survey, 2010-2015 14,000 12,000 1 Unit Buildings 10,000 42.3% 8,000 Units in 2+ Unit 42.9% 37.1% 35.8% Buildings 6,000 4,000 28.3% 24.3% 2,000 0 2010 2011 2012 2013 2014 2015

Minnesotans Experiencing Homelessness on a Single Night Wilder Statewide Homelessness Study Data 10,214 9,654 9,312 Between 2012 & 2015, the 7,854 7,751 number of people 7,696 experiencing homelessness decreased by 9 percent. 5,645 However the number of 4,553 homeless individuals living in Minnesota is still higher than it 3,079 was prior to the recession 1991 1994 1997 2000 2003 2006 2009 2012 2015

Homelessness in Minnesota, Wilder Unaccompanied Youth & Children Experiencing Homelessness • Children – any person under 18 experiencing homelessness with a parent or guardian • Unaccompanied Youth – any person under the age of 18 identi fj ed as homeless without a parent or guardian

Owner Cost Burden by Income Percent of Earnings Towards Housing by Income Group 109,339 160,817 Less than 20% 30% or More 20% - 29% 90% 77% 80% 182,816 759,127 69% 70% 60% 49% 306,269 50% 45% 40% 39% Less than $20,000: $20,000 to $34,999: 40% 31% 28% $35,000 to $49,999: $50,000 to $74,999: 30% 25% 24% 22% 22% $75,000 or more: 20% 14% 9% 7% 10% 0% Under $20,000 $20,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 or More

Homeownership Minnesota Homeownership Rate Since 1960 U.S. Census Bureau & American Community Survey 1960-2014 79% 77% 77% 75% 75% 73% 72% 72% 72% 72% 72% 71% 69% 67% 65% 1960 1970 1980 1990 2000 2003 2014

Mortgage Delinquencies & Foreclosures Since 2008, the total number of foreclosures in Number of Foreclosures Filed in Minnesota Greater Minnesota 2010-2015, Quarterly 8,000 dropped by 54.2% 7,258 Greater MN and the number of 7,000 St. Cloud foreclosures in the Rochester Twin-Cities dropped 6,000 Duluth by 76.6% Twin Cities 5,000 4,000 3,000 2,000 1,615 1,000 0 2010 2011 2012 2013 2014 2015

Workforce Housing in Minnesota Number of Hours Per Week Minimum Wage Earners Rents Minnesota Households Can A ff ord, must work to A ff ord Median Priced 1 BR apartment Compared to Fair Market Rents $894 Two-bedroom Fair Market Rent $707 One-bedroom Fair Market Rent $244 A ff ordable to SSI recipient $416 A ff ordable to full-time minimum wage earner $589 A ff ordable to extremely low income household $818 A ff ordable to median income renter household $1,964 A ff ordable to median income family $0 $500 $1,000 $1,500 $2,000 Out of Reach 2015. Minnesota Housing Partnership and National Low Income Housing Coalition.

Workforce Housing & Transportation

Aging Workforce Housing, Greater MN Owner Occupied - 2015 Renter Occupied - 2015

Senior Housing Needs in MN Population Age 65 Years and Older Seniors Experiencing Poverty Minnesota, 1950-2045 Minnesota, 2006-2014 1,400,000 25.00% 55,856 55,378 53,905 54,448 53,605 53,610 1,200,000 52,316 20.00% 1,000,000 47,567 47,785 15.00% 800,000 600,000 10.00% 2006 2007 2008 2009 2010 2011 2012 2013 2014 400,000 5.00% 200,000 0 0.00% 1950 1960 1970 1980 1990 2000 2010 2014 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065 Total 65+ Population Percent of Total Population

Senior Housing Needs in MN

Racial/Ethnic Disparities In Housing Homeownership Rate by Race/Ethnicity There is only a 1 in 18 Minnesota, 2014 chance people who identify as White are 77% extremely low-income (ELI), but there is a 1 in 5 55% chance that people who 46% 43% identify non-white or Hispanic/Latino are ELI 24% White Asian American Indian/ Hispanic/Latino Black Alaskan Native

Racial/Ethnic Disparities in Homelessness Minnesotans Experiencing Homelessness by Race & Ethnicity, 1997-2012 vs. General MN Population, 2012 100% 9% 5% 90% 11% Not speci fj ed 9% 11% 11% 10% 80% Asian or Paci fj c Islander 70% 42% 47% 40% 43% 40% 38% 60% Multi-racial or other 50% 86% American Indian 40% 30% African American & African Native 43% 36% 39% 42% 39% 35% 20% White or Caucasian 10% 0% 1997 2000 2003 2006 2009 2012 2012 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 Projected Population for People of Color Minnesota State Demographic Center, 2014 Projected Growth 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 1960 1970 1980 1990 2000 2010 2011 2012 2013 2014 2020 2025 2030 2035

Where to fj nd research and policy tools hMp://mhponline.org/policy/tools hMp://homesforallmn.org/

Tools you can use hMp://mhponline.org/policy/tools/communicaPons/leMers-to-the-editor

Tools you can use hMp://mhponline.org/publicaPons/legislaPve-district-profiles hMp://mhponline.org/publicaPons/county-profiles/2015

Communicating about a ff ordable housing Level 1- Level 2- Level 3- Values Issue Areas Policies • Opportunity • Housing • Inclusionary Zoning • Safety • Environment • Tax • Stewardship • Economic Abatements for future stabilization generations • Housing Trust • Etc. Funds

Communicating about a ff ordable housing Try: Because: Instead of: • Affordable We’re talking about • Affordable homes housing real people who live in homes. The word • Homes • Housing “home” is associated affordable to all projects with a set of values. It • Affordable • Low-income connotes safety and places to live housing stability. It’s where you • Developments raise your family.

Develop messages around aspirations & solutions SoluPon Problem SoluPon