Housing MinneapolisSt' Pauls Working Families

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Housing Minneapolis-St. Pauls Working
Families
The Center for
Community Capitalism

• Presented by
• Michael A. Stegman
• Center for Community Capitalism
• Prepared Under Grant from
• Center for Housing Policy

T H E F R A N K H A W K I N S K E N A N I
N S T I T U T E O F PR I V A T E E N T E R
P R I S E
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Housing Casualties of the Booming Economy

• For Hospitals, the Emergency is Housing, The
  Wall Street Journal 12/15/99.
• Workers Trapped at el Minimo, Los Angeles
  Times, 3/9/00.
• Homeless on 50,000 a Year in Luxuriant Silicon
  Valley, The New York Times, 2/20/00.
• Climbing House Prices Put Squeeze on Buyers
  Economy Jacking Up Demand for Dwellings, The
  Houston Chronicle, 10/3/99.
• Cities Revive, but Where Will the Working Poor
  Live? The Washington Post, 10/24/99.
• Resort Towns Face Ruckus Over Affordable
  Housing, The Wall Street Journal, 11/24/99.
• HUD Aid No Match for Soaring Rents, Fewer
  Apartments, The Washington Post, 10/12/99.

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A Policy Watershed, or Cyclical Market Imbalance?

• For most of the past 20 years, federal housing
  policy has been closely linked to issues of
  poverty and welfare dependency. While the
  non-working poor have by far the highest
  incidence of housing needs, millions of working
  families who are not poor are also experiencing
  growing housing stress.

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Defining Critical Housing Needs

• Critical Housing Needs Paying more than half of
  family income for housing and/or living in
  severely inadequate housing.

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Moderate Income Working Families, Minneapolis-St.
Paul SMA, 1998

• Working families with incomes of 10,700-120 of
  median have a median income of 36,000, and
  include
• 54 of all working families, regardless of
  income
• 99 of all working families with housing cost
  burden gt50
• 71 of all working families living in severely
  inadequate housing
• 62 of all crowded working families.

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Percent of Working Families with Critical Housing
Needs, by Tenure, U.S., 1995 and 1997
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Severe Housing Cost Burdens of Essential Workers,
U.S., 1993 and 1996
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Percent of All Households With Critical Housing
Needs,Selected Metropolitan Areas, U.S., 1998
Los Angeles are for 1997. Los Angeles CMSA
includes New York are for 1997. New York CMSA
includes Source 1998 American Housing Survey
metropolitan files and authors calculations
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Percent of All Working Families with Critical
Housing Needs,Selected Metropolitan Areas, U.S.
1998
Source 1998 American Housing Survey metropolitan
files and authors calculations
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Housing Problems of Working Families with
Severely or Moderately Inadequate
Housing,Selected Metropolitan Areas, U.S., 1998
1997 data Source 1998 American Housing Survey
metropolitan files and authors calculations
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Incidence of Crowding Among Working
Families,Selected Metropolitan Areas, U.S., 1998
1997 data Source 1998 American Housing Survey
metropolitan files and authors calculations
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Working Status of Households with Critical
Housing Needs, Minneapolis-St. Paul SMA, 1998
Marginally employed include families with
earnings from wages of 2,675 - 10,700, (e.g.
between on-quarter and one, full-time minimum
wage equivalent. Moderate income are families
whose total income is between 10,700 and 120
percent of area median income, and where earnings
account for at least half the familys total
income. Source 1998 American Housing Survey
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Working Status of Households with Critical
Housing Needs, U.S. and Minneapolis-St. Paul
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The Incomes of Working Families with Critical
Housing Needs, Minneapolis, St. Paul, SMA, 1998
Source 1998 American Housing Survey and authors
calculations
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The Incomes of Moderate-Income Working Families
With Critical Housing Needs, U.S. and
Minneapolis-St. Paul
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Incidence of Severe Housing Cost Burdens, by
Family Income Relative to the Minimum Wage,
Minneapolis-St. Paul SMA, 1998
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The Location and Tenure of Working Families with
Critical Housing Needs, Minneapolis-St. Paul, SMA
1998
Source 1997 American Housing Survey and Authors
calculations
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Percent of Working Families with Critical Housing
Needs Who are HomeownersU.S. and
Minneapolis-St. Paul

• United States 51
• Central Cities 39
• Metro Suburbs 52
• Non-metro 71

• Metro Area 73
• Minneapolis 56
• St. Paul 71
• Metro Suburbs 78

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Critical Housing Needs of Working Families by
Race/Ethnicity, Minneapolis-St. Paul SMA, 1998
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The Size of the Occupied Housing Stock, U.S.,
Selected Years(000s)
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New, Unsubsidized Apartments Completed, by Rent
and Regions, U.S., 1998
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Shallow Subsidy Tax Credit Units are Replacing
Project-Based, Deep Subsidy Units, Net Change in
Project-Based Inventory, U.S. Selected Years
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Potential Demand for Homeownership Among Working
Families with Critical Housing Needs,
Minneapolis-St. Paul SMA, 1998
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Policy Implications

• 1. Need more demand-side assistancebut not just
  for renters.
• Almost 80 percent of all working families in
  Minneapolis-St. Paul SMA with severe cost burdens
  are homeowners.

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Annual Cost of Housing Voucher Program that Would
Reduce Excessive Cost Burdens of Working Families
to Thirty Percent of Income, Minneapolis-St. Paul
SMA, 1998(000s)
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Policy Implications

• 2. The income limits of some federal housing
  programs should probably be raised to recognize
  the fact that critical housing problems are
  moving up the income ladder.

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Policy Implications

• 3. Policymakers, community-based organizations,
  and industry leaders should exploit whatever
  homeownership potential that seems to exist among
  working families with critical housing needs.

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Policy Implications

• 4. States and localities have to step up to
  the plate unlikely that the federal government
  will expand housing budget to address the serious
  needs of working families.

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Policy Implications

• 5. Efforts to control urban sprawl and limit
  growth could aggravate the housing problem of
  working families. Affordable housing must be an
  integral element of growth management
  strategies.

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Policy Implications

• 6. While not a housing program, the Earned
  Income Tax Credit for the working poor and State
  supplements, can help relieve housing stress of
  working families.

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