Chart of the Day: Twin Cities Rental Households by Income

You might have missed Greta Kaul’s excellent article in Minnpost a while back, bringing some data into the conversation about the Twin Cities housing market. It is well worth your time and describes how the rental and home markets have changed over the last 5-10 years.

Here’s one of the charts that caught my eye:

People often think that renters are, by default, also people without who are in the lower income brackets. But that’s becoming less the case over the last few years. Describing the chart, Kaul writes:

Many of these new, higher-income renters might be homebuyers if it weren’t for a small stock of starter homes available, said Chip Halbach, the executive director of the Minnesota Housing Partnership, who has been working on housing affordability in the Twin Cities since the late-’70s.

There are a bunch of other great bits of data in the piece, showing the effects of the area housing shortage in different ways. Check it out!

3 thoughts on “Chart of the Day: Twin Cities Rental Households by Income

  1. Karen Nelson

    Seems like there are more “renters” by choice these days – doctors etc whom I know that rent very nice apartments, could easily afford a house or condo but seem to like convenience of apartment.

  2. Linda Feltes

    I agree with Karen. My renters, in their early 30s with one child, have no interest in owning or maintenance. Just a different philosophy of home-ownership. May go along with dating and marrying at a later age. There’s lots to do out there–why be tied down.

  3. Walker AngellWalker Angell

    Ownership is much less the norm in Europe for all income brackets. I think much of this is to Karen’s point that many prefer renting to ownership, particularly those under about 35. Europe does not have nearly the focus on ownership that we do in the US.

    Interestingly, this has only a very minor bit to do with the probability that they’ll eventually move because Europeans are much more likely to live in the same neighborhood or adjacent neighborhood. If they move it is often only a few blocks. While a higher paying job farther away and an increase in lifestyle may seem appealing, it often doesn’t overcome the benefits of a neighborhood you know and love (admittedly they’re neighborhoods are usually much more inviting than ours) along with family and friends nearby.

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