The home ownership rate is 71.4%, compared with 67.8% in 1990, among the highest in the US, according to the latest demographic data from the US Census. Double-income households, favorable mortgage interest rates, low unemployment and economic prosperity fuel the high ownership rate.
But it also relates to another trend uncovered by the recent census: The Twin Cities has an overall vacancyrate for the seven-county region is 2.5%, among the lowest in the country. The cities of Minneapolisand St. Paul both experienced a drop in actual number of housing units, but an increase in the number ofhouseholds because vacancy rates dropped significantly during the decade. That indicates a shortage ofavailable housing, according to the Metropolitan Council, a state agency that overseesmetropolitan-wide housing, transportation and planning agency.
"The census confirms what we've known for some time -- that the Twin Cities metro area faces a crisisin housing," says Ted Mondale, chairman of the Metropolitan Council. "There's not enough. It's expensive. And too often, it's not planned and developed in a way that achieves efficiencies, promotes affordability, is walkable and livable and provides good access to services and amenities."
Some housing officials blame a state property tax system that favors homeowners while hiking rates forlandlords. Others cite neighborhood resistance to multifamily housing projects. Help may be on the way from the Minnesota Legislature, which is considering major property tax reform; lawmakers ended the regular session without an agreement, and will likely vote on the issue at a special session sometime this summer once a compromise has been reached.
The Census also showed that married couple families dropped from 53.8% of all households in theTwin Cities region to just over half of households, 50.9 percent. Married couples with children now makeup only about 25% of households in the region, state and nationwide.
"The 'typical' household in the Twin Cities metro area isn't so typical anymore," adds Mondale. "Today'scensus release shows growing numbers of single heads of households, more single people and more seniors, which translates into the need not only for more housing, but more housing choices."
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