43% of all renters in the metro area are cost-burdened. 22% are extremely cost-burdened, paying more than half of their income on housing. Extremely low income families are characterized as making less than $25,750 for a family of 4. 27% of this population are disabled and 30% are seniors. 78% of that population are cost-burdened with 63% paying more than half their income.
Minnesota is the 21st most expensive state to live in with the 2nd most expensive housing market. The minimum wage is $9.65 per hour. In Minnesota, a worker making minimum wage would have to work 61 hours a week to afford a modest 1 bedroom rental home at a Fair Market Rate. The hourly rate needed to afford a 2 bedroom rental in Minnesota is $18.60 or $3,225 per month. There are 1,749 low income apartment complexes in Minnesota which contain 99,966 affordable apartments. 63,449 of these apartments set rent based on your income. By clicking here, you can see the apartment communities and wait lists by county.
Still, there is deficit of nearly 65,000 affordable housing units for extremely low income families in the metro area. There is a deficit of 92,439 units across the state.
According the Minnesota newspaper, the Union Times, “Minnesota has lost thousands of units of “naturally occurring” affordable rental housing — older units with modest rents. As rents have risen and vacancies fallen, they’ve become plums for investors to pluck, update and put back on the market at much higher rents. Strong growth among renter households with higher incomes has prodded the trend, symbolized most notably in the Twin Cities by the upscaling of the 700-unit Crossroads at Penn complex in Richfield, where many low-income renters lost their homes.”
Last fall, Minnesota invested $126 million in affordable housing to address the statewide shortage by building or restoring 1,800 units across the state. At the time, Minnesota Housing Commissioner Mary Tingerthal said, “The cost of housing is going up faster than people's incomes. We're seeing a shortage of low-cost homes for sale for first-time homebuyers and we're losing affordable rental properties at a pretty rapid pace. They've (lawmakers) really understood on a very bipartisan basis that housing is the foundation for success and it really makes sense for the state to invest, alongside with private investors to make this housing possible.”
Here is where the candidates stand on housing:
Jeff Johnson (R): Candidate Johnson says, "Government has created a larger problem than anything else. The average cost (of housing construction) is considerably higher than anything across the borders because state government has created regulatory requirements that drive up the cost by a lot." According to the Pine and Lakes Echo Journal Johnson believes, “It is not the role of government to fund and build affordable housing, though there are a number of ways the state government in St. Paul can incentivize housing projects and the private sector, including businesses, to spur the creation of housing for workers. Aside from that—between over-regulating building ordinances or taxing initiatives to the point of unprofitability—it's often government that stymies housing. Rolling back regulations in this regard forms a crucial part of his platform.”
Erin Murphy (D): Candidate Murphy will propose and sign bonding bills annually and will commit to dedicating $100 million to affordable housing every year. She will work to protect naturally occurring affordable housing that we lose each year to conversions and disrepair. She will work with communities throughout the state to make sure their unique circumstances are addressed.
Tim Pawlenty (R): Candidate Pawlenty’s website says, “He has consistently championed policies that promote safe, affordable housing; balancing resource protection and the needs of Minnesota families.” He is endorsed by Housing First Minnesota, the state’s leading voice for homebuilding and remodeling. President, Tom Wiener, said, “Tim Pawlenty is an experienced and proven housing leader who knows that the American dream of homeownership is central to the lives of Minnesotans, the communities where they live, and to the fabric of Minnesota’s economy.” Last year, Housing First Minnesota engaged 11 gubernatorial candidates, including all highlighted here, in housing policy discussions. They reviewed written responses to policy questions, reviewed measures of demonstrated policy support, and completed extensive discussions. They unanimously selected Tim Pawlenty. Executive Director, David Siegel, said, “Minnesota is experiencing a housing affordability crisis that is negatively impacting first-time homebuyers most directly. We need bold, experienced leadership to improve the housing market, which is what Tim Pawlenty offers.”
Tim Walz (D): Candidate Walz hosted a Workforce Housing Summit in March of 2016 where about 100 people came together to seek solutions to workforce housing shortages in southeastern Minnesota. He recently tweeted, “Together we can build coalitions to address the lack of affordable housing. Every Minnesotan deserves a home. This is a human issue, we must see the dignity in each individual and recognize that housing isn’t a privilege, it’s a right.”
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