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Page last modified: Monday, 04-Mar-2013 15:10:15 CST
Friday May 24, 2013 10:12:45 PM
|Dept. of Administration / Office of Geographic and Demographic Analysis|
Minnesota Milestones Links
Indicator 4 7 : Housing costs
Goal: All Minnesotans will have decent, safe and affordable housing. An adequate supply of affordable housing is vital to healthy families, communities and local economies. Concern about affordability is mounting in many communities, especially where affordable housing is being eliminated and where growing businesses have trouble attracting workers due to shortages of affordable housing.
Rationale: This indicator defines housing affordability in relation to household income.Renters paying more than 35 percent of their income for housing, percent
Data source: U.S. Bureau of the CensusHomeowners paying more than 35 percent of their income for housing, percent
Data source: U.S. Bureau of the CensusHouseholds paying more than 35 percent of their income for housing, percent
Data source: U.S. Bureau of the Census
About this indicator: In 2000, 11 percent of Minnesota homeowners and 27 percent of renters exceeded the 35 percent threshold. These rates are higher for homeowners, but lower for renters compared to 1990 figures of 10 percent and 32 percent respectively.
A threshold of 35 percent of monthly income is commonly used to assess affordability of housing costs, especially for lower-income households. Households that spend more than 35 percent are likely to be financially strained by housing costs. While low-income people may have no alternative but to spend more than 35 percent on housing, some affluent people spend more out of choice.
Affordable and good-quality housing is essential for a community to attract and retain businesses. Some rural communities with thriving economies suffered from housing shortages during the 1990s. The aging of the Baby Boom population is also bringing attention to the need for housing suitable to different life stages.
For comparison: In 2000, fewer Minnesota households spent 35 percent of their incomes on housing than did households nationally. For renters, the Minnesota rate was 2.4 percentage points better than the national average of 29.5 percent. For homeowners, it was 4.7 percentage points better than the national rate of 15.8 percent.
Things to think about: A higher than normal demand for housing during the last half of the 1990s increased the cost of housing. This rise in housing costs was offset by increases in income.
Technical notes: These figures exclude those living in condominiums, mobile homes and single unit dwellings on more than 10 acres of land.
Other related indicators:
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