Housing Minnesota Workforce Housing in Minnesota Getting it

Housing. Minnesota Workforce Housing in Minnesota: Getting it Done Conrad E. Egan President & CEO National Housing Conference November 24, 2003

Center for Housing Policy November 2002 New Century Housing America’s Working Families and the Housing Landscape Artwork is owned by and being used with the permission of the Neighborhood Reinvestment Corporation owns the copyright to such artwork.

One in Seven American Families Have Critical Housing Needs 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.

4. 8 Million Low- to Moderate-Income Families with Critical Housing Needs Work the Equivalent of a Full-Time Job.

Cost is the culprit Most Working Families, with Critical Housing Needs, Pay at Least 50 Percent of Their Income for Housing

Homeowners Account for More Than Half of Working Families with Critical Housing Needs 1997 1999 2001 Homeowners 51. 5% 49. 6% 53. 0% Renters 48. 5% 50. 4% 47. 0% 47% 53% 2001

Critical Housing Needs Are Not Only a “City” Problem 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% URBAN SUBURBAN RURAL

Compared to Native-Born Low- to Moderate-Income Families, Immigrant Families with Critical Housing Needs are More Likely… Are More Likely to Have Incomes Below 50% of the Local Median. Have Similar Median Incomes But … Annual Income Immigrants $22, 000 Native-Born $22, 000 Are More Likely to Live in Expensive Areas. Average Rent Median Rent Immigrants $870 $809 Native-Born $771 $755 Are More Likely to Depend on More than One Wage Earner. Immigrants 57. 1% 33. 8% 6. 9% Native-Born 65. 8% 27. 5% 5. 1%

Compared to Native-Born Low- to Moderate-Income Families, Immigrant Families with Critical Housing Needs are More Likely… Are More Likely to be Minority Households. Are More Likely to be Households with Children. 49. 3% Immigrants 25. 4% Native-Born Couple with Children 13. 2% Immigrants 18. 0% Native-Born Single Female with Children Are Less Likely to become Homeowners. 12. 1% Immigrants 25. 6% Native-Born Single-Person Household 25. 5% Immigrants 31. 1% Native-Born Immigrants Native-Born More Than One Person with no Children

Nearly Six in Ten Working Immigrant Families with Critical Housing Needs are Hispanic Rates of Critical Housing Needs and Crowding for Immigrant Working Families Percent in Group with Critical Housing Needs Canada/Europe Percent in Group Crowded 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 Where 1. 2 Million Immigrant Working Families with Critical Housing Needs Are From…

What is Happening in the United States: Homeownership Market 2001 Median Priced Home $156, 000 Annual Income Needed Elementary School Teacher Police Officer Licensed Practical Nurse Retail Salesperson Area Median Annual Income (2001) Janitor

What is Happening the United States: Rental Market 2001 Fair Market Rent 2 BR $721/month Hourly Wage Needed to Afford 2 BR Retail Salesperson Area Median Hourly Wage (2001) Janitor

Minneapolis – St. Paul, MN-WI Homeownership Market 2001 Median Priced Home $169, 000 Annual Income Needed Elementary School Teacher Police Officer Licensed Practical Nurse Retail Salesperson Area Median Annual Income (2001) Janitor

Minneapolis – St. Paul, MN-WI Rental Market 2001 Fair Market Rent 1 BR $674/month 2 BR $862/month Hourly Wage Needed to Afford 1 BR 2 BR Licensed Practical Nurse Retail Salesperson Area Median Hourly Wage (2001) Janitor

National Housing Conference Senior 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 Conference 1801 K Street, N. W. Suite M-100 Washington, DC 20006 -1301 Tel: (202) 466 -2121 Web site: http: //www. nhc. org