Agenda - Planning Commission - 09/01/2016

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DEMOGRAPHIC ANALYSIS Homeownership Rate Trends Table 6 shows the number of owner and renter households in the PMA and SMA from 1990 to 2000. These figures are from the Census Bureau. Key points derived from the table are: • In 1990, 84% of all households in the Market Area owned their housing. By 2000, that per- centage increased to 85%, as roughly 90% of the new households added during the 1990s were owners. Contributing to the increase in the homeownership rate during the 1990s were the aging of the baby boomers into peak homeownership years, increased development of single-family homes and for-sale townhomes in the Market Area, and low mortgage interest rates and easier financing qualifications that made homeownership more obtainable for younger households. • In 2000, the homeownership rate peaked in the 55 to 64 age cohort(92%) and then declined gradually the older the household. While a similar proportion of householders age 75+ and 25 to 34 rented their housing in 2000, the number of young adult renters (2,931) outnum- bered the older adult renters (1,141). • Table 6 shows that younger people have much higher propensity to rent. As their population increases (as shown in Table 2), the number of young renters is projected to increase this decade as well. A portion of these young renters will need affordable housing, as they also have lower incomes. • Despite having moderate incomes, most seniors often are not candidates for affordable rental housing since they are already homeowners (82% of 65-74 in PMA and 50% of 75+ seniors). Many of the 75+ senior renters are those in communities with services or in market rate buildings. A portion,however, do need assistance. Chart 3: Owner/Renter Households by Age of House holder 25,000 Ramsey Market Area -2000 .� 20,000 ■ Owners ❑ Renters y 15,000 0 x10,000 0 Z 5,000 0 15-24 25-34 35-44 45-54 55-64 65-74 75+ Age of Householder MAXFIELD RESEARCH INC. 14