Here’s a chart from the recently released 72-page final report of the Governor’s Task Force on Housing, which is out today.
It shows the relationship between housing supply and housing affordability for both the owner-occupied and rental markets within the Minneapolis area.
Here you go:
It’s a relatively straightforward situation happening here, with a tight market leading to higher prices. The rest of the report focuses on the supply of affordable housing in general (both market NOAH housing and subsidized housing) as well as some of the inequalities in homeownership rates by racial groups in Minnesota.
The report offers six broad goals around housing:
- Create a broader and stronger public commitment to the urgent need for more homes that are more affordable to more Minnesotans.
- Keep the homes we already have, especially those that are most affordable.
- Build 300,000 new homes by 2030, across all types, prices, and locations.
- Assist twice as many families at risk of losing their homes because of rent increases, evictions, and heavy cost burdens.
- Build stronger links between where we live and the services we may need to live stable lives.
- Create stronger pathways to sustainable homeownership, with a focus on removing barriers for households of color.
Like the earlier Met Council housing update, the study suggest a two-pronged approach to creating affordable housing in the state, suggesting the need for both new market-rate construction and a big increase in the state’s commitment to building dedicated affordable housing. It also offers a host of ideas for providing more rights for renters facing eviction and other barriers to housing.
Check out coverage of the report in the Minneapolis Star Tribune, the Rochester Post-Bulletin, and the Saint Paul Pioneer Press, along with the official press release.
They really need to break these things down by region of Minneapolis, or the overall picture could be very misleading. I’d bet a dollar that housing price isn’t going up that much in Northeast, and that the drop in inventory is strongest in St. Anthony and East Bank. Big changes in one (or more) parts of the city can mask things elsewhere.
Also, 300,000 homes! Sounds like a lot. Its almost like the best way to solve the problem is to build more four-plexes.
lol. My house in Northeast (Windom Park) appreciated 39% in 3 years and 9 months. Housing demand is quote strong in Northeast.
Let’s build all 300,000 inside the Minneapolis and Saint Paul borders! And we can make outstate pay for it too!
Real life supply and demand curve. Doesn’t get a lot more basic than that.
Totally agree. Basic economics.
To drop rents on the lower end there must be new public housing built, there hasn’t been any built for 30-40 years. That is economics. Market rate/luxury apts don’t drop rents except at the higher end of the market. It does not ‘trickle down’. That is economics.
If you drop population in the cities that would drop rents and that’s what happened pretty much from 1950s-2010. That is economics.
Just building “affordable” private housing with subsidies doesn’t do the job, it is really ‘middle class’ affordable and the rents go up with private owners while millions in public financing, TIFF, variances, utilities, roads, land are given to developers. Usually “affordable” has a 15-20 year time limit, then it goes to market rate or even just a change in ownership moves it to market rate.
The market rate housing being built in St.Paul/Mpls is gentrifying the cities (probably 95%-99% of the new units) and can be seen by the increase in homelessness.
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