The study, called Next Decade of Housing in Minnesota, forecasts that current public and private efforts will fall short in meeting demand for affordable housing by 33,000 units in Minnesota by 2010. Of the shortfall, about 22,300 units will be needed in the seven-county metropolitan area, and the remaining 10,600 will be required in the rest of the state. That's despite a projected addition of 26,400 affordable housing units during the period.
The study was sponsored by the Minnesota Housing Finance Agency, Family Housing Fund and Greater Minnesota Housing Fund along with the Metropolitan Council and was conducted by BBC Research & Consulting, a Denver-based consultant.
According to the study results, nearly 300,000 low-income Minnesota households currently pay more than 30% of their income on housing and are "cost-burdened", a term used by the Department of Housing and Urban Development. In the seven-county metro area, 46% of low-income households, or 171,000, are in this "cost-burdened" category.
The study concludes that the data underscores the need for cost reduction strategies in housing construction, and continued efforts at rehabilitation and preservation of the existing housing stock that would be affordable to low-income Minnesotans. A variety of sectors of society, including businesses, philanthropic and nonprofit organizations, local governments, builders, developers and others, need to be involved in the solution, the report says.
The results also show a growing market for housing that is affordable to low-income people—those who earn less than 60% of the HUD median family income in the seven Twin Cities metropolitan area counties, and less than 80% of the HUD median family income of Greater Minnesota.
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