Agenda - Council - 08/27/2019 - Laserfiche WebLink

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DEMOGRAPHIC ANALYSIS a 0 0 cw aJ a Projected Population Growth by Age Group: 2019 - 2024 75+ 65 to 74 55 to 64 45 to 54 35 to 44 25 to 34 20 to 24 Under20 ■ • Metro Area Anoka Co. • Ramsey -10.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 Percent Household Income by Age of Householder The estimated distribution of household incomes in Ramsey for 2019 and 2024 are shown in Ta- ble D-3. The data was estimated by Maxfield Research based on income trends provided by ESRI. The data helps ascertain the demand for different housing products based on the size of the market at specific cost levels. The Department of Housing and Urban Development defines affordable housing costs as 30% of a household's adjusted gross income. For example, a household in Ramsey with the median in- come of $92,484 per year would be able to afford a monthly housing cost of about $2,312. Maxfield Research uses a figure of 25% to 30% for younger households and 40% or more for seniors, since seniors generally have lower living expenses and can often sell their homes and use the proceeds toward rent payments. A generally accepted standard for affordable owner -occupied housing is that a typical house- hold can afford to pay 3.0 to 3.5 times their annual income on a single-family home. Thus, a $92,484 income would translate to an affordable single-family home of $277,452 to $323,694. The higher end of this range assumes that the person has adequate funds for down payment and closing costs, but does not include savings or equity in an existing home which would allow them to purchase a higher priced home. • Ramsey has an estimated median household income of $92,484 in 2019 and is expected to increase over the next five years to $102,941 in 2024 (11.3%). This equates to an increase of 2.3% annually. MAXFIELD RESEARCH AND CONSULTING 11