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Metropolitan Council <br />AA <br />Regional Benchmarks <br />Measuring Our Progress <br />2011 Update <br />production of affordable rental housing, 864 units, has been almost 82 percent of the target of <br />1,056 units per year. <br />From 1996-2010, the region fell short of its targeted goal of nearly 16,000 affordable rental units <br />by almost 4,000 units, adding only 11,873 units. <br />Housing costs are considered affordable if they consume no more than 30 percent of household <br />income. For the 1996 to 2010 period, the Council defined annual affordability thresholds based <br />on the housing budget of households earning 80 percent of the area median family income for <br />owner -occupied housing and 50 percent of median for rental housing. <br />Source: Metropolitan Council Research <br />• Housing Affordability: Homes sold at prices affordable to median income family <br />2000 Baseline: <br />2030 Target: <br />2010 Actual: <br />Annual indicator: <br />2010 Actual: <br />Changes in regional housing affordability <br />generally have followed national trends, <br />but the differences are getting closer <br />according to the National Association of <br />Home Builders / Wells Fargo Housing <br />Opportunity Index. The Index dropped in <br />the middle of this decade as housing <br />prices outpaced income growth. As the <br />housing boom ended and home prices <br />began to fall, the index increased to <br />show a near historic high level of <br />affordability in 2010 for the Minneapolis - <br />St. Paul MSA and a historic high for the <br />U.S. (note that the NAHB did not <br />calculate the index from the 2nd quarter Mpls St Paul MSA U.S. Target <br />of 2002 through the 3rd quarter of 2003). <br />The percentage of affordable homes sold in the 13-county Minneapolis -St. Paul area continues <br />to be higher than the national average, but the gap has shrunk steadily from 2006 (19.5 percent <br />difference) to 2010 (12.6 percent difference). The 2010 levels have remained above the overall <br />target that 75 percent of the homes be affordable to the median income, but the region failed to <br />meet the goal of maintaining a 15-point spread between the metro and the U.S. index in both <br />2009 and 2010. <br />75.0 percent affordable in metro area <br />(vs. 59.7 percent national average) <br />75.0 percent affordable in metro area <br />85.2 percent affordable in metro area <br />Region's housing affordability should remain 15 <br />points ahead of the national average <br />Region's housing affordability 12.6 points ahead of <br />the national average of 72.6 <br />Housing Affordability Index <br />85.5 85.2 <br />1 <br />1 <br />Source: National Association of Home Builders. <br />T <br />aE <br />o <br />.L <br />f6 • 0 <br />-o 0 <br />o •— <br />V! <br />V!CD LE <br />�6 <br />Ea <br />of <br />• o <br />o <br />O <br />oL• <br />0) 0 <br />a <br />co <br />2000 2001 2004 2005 2006 2007 2008 2009 2010 <br />13 <br />