Agenda - Planning Commission - 12/01/2011 - Work Session

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IAA Metropolitan Council AA Regional Benchmarks Measuring Our Progress 2011 Update production of affordable rental housing, 864 units, has been almost 82 percent of the target of 1,056 units per year. From 1996-2010, the region fell short of its targeted goal of nearly 16,000 affordable rental units by almost 4,000 units, adding only 11,873 units. Housing costs are considered affordable if they consume no more than 30 percent of household income. For the 1996 to 2010 period, the Council defined annual affordability thresholds based on the housing budget of households earning 80 percent of the area median family income for owner -occupied housing and 50 percent of median for rental housing. Source: Metropolitan Council Research • Housing Affordability: Homes sold at prices affordable to median income family 2000 Baseline: 2030 Target: 2010 Actual: Annual indicator: 2010 Actual: 75.0 percent affordable in metro area (vs. 59.7 percent national average) 75.0 percent affordable in metro area 85.2 percent affordable in metro area Region's housing affordability should remain 15 points ahead of the national average Region's housing affordability 12.6 points ahead of the national average of 72.6 Changes in regional housing affordability generally have followed national trends, but the differences are getting closer according to the National Association of w 75 0 77.4• 73. Home Builders / Wells Fargo Housing " 71.0 Opportunity Index. The Index dropped in . I 64.0 60.4 61.8 the middle of this decade as housing y prices outpaced income growth. As the a housing boom ended and home prices E began to fall, the index increased to c .2 CD show a near historic high level of affordability in 2010 for the Minneapolis- 2 St. Paul MSA and a historic high for the a co U.S. (note that the NAHB did not calculate the index from the 2nd quarter of 2002 through the 3rd quarter of 2003). The percentage of affordable homes sold in the 13-county Minneapolis -St. Paul area continues to be higher than the national average, but the gap has shrunk steadily from 2006 (19.5 percent difference) to 2010 (12.6 percent difference). The 2010 levels have remained above the overall target that 75 percent of the homes be affordable to the median income, but the region failed to meet the goal of maintaining a 15-point spread between the metro and the U.S. index in both 2009 and 2010. Source: National Association of Home Builders. Housing Affordabilitylndex 85.5 85.2 2000 2001 2004 2005 2006 2007 2008 2009 2010 Mpls St Paul MSA U.S. Target 13