This article was printed in Minnesota Multi Housing Association’s newsletter.
We’ve heard the statistics about Minnesota’s affordable housing crisis so frequently that we run the risk of becoming immune to them[1]:
- More than a quarter of Minnesota families pay more than they can afford for housing – and that number is growing.
- 40 percent of households of color experience housing cost burden (defined as paying more than 30 percent of income for housing) compared to 23 percent of white households.
- Only one in seven of the top in-demand jobs in Minnesota pays enough to afford a median-value home. Only two pay enough to afford a two-bedroom apartment.
- 57 percent of all senior renters and more than 25 percent of senior homeowners pay more than 30 percent of their income for housing.
In late November 2019, Baker Tilly Municipal Advisors hosted their annual Symposium for members of the public sector, highlighting the topic of affordable housing through a keynote address by Alan Arthur, President and Chief Executive Officer of Aeon, a not-for-profit developer focused on affordable housing solutions and subsequent breakout sessions comprised of affordable housing practitioners. After hearing the statistics, the case studies and the talk of possible solutions, I left the Symposium with three important takeaways.
“We ain’t seen nothing yet”
Alan Arthur sounded the alarm bells in his keynote speech. An almost 50-year veteran of the affordable housing and real estate industry, Arthur shared his belief that over the next two decades we will see the worst housing crisis for lower income people since the Great Depression. Furthermore, he expressed the belief that homelessness will double during this time period. Arthur quipped, “Even if I’m wrong by half, homelessness will still increase by 25 percent.”
He noted the window to keep NOAH (Naturally Occurring Affordable Housing) properties affordable is closing. In places like Seattle and Portland, that window has already closed. The Twin Cities is losing 75-100 apartment units per week as these market-priced properties are acquired and renovated by private developers causing rents to increase to a level that is no longer affordable. The result? Resident evictions and displaced residents, which contribute to the homeless numbers Arthur has predicted.
