Workforce Housing in Minnesota: Getting it Done Conrad E. Egan President & CEO National Housing Conference HousingMinnesota November 24, 2003

America’s Working Families and the Housing Landscape Artwork is owned by and being used with the permission of the Neighborhood Reinvestment Corporation. Neighborhood Reinvestment Corporation owns the copyright to such artwork. New Century Housing Center for Housing Policy November 2002

In 2001, the most recent data available, 14.4 million American families –-or one in seven households–-had “critical housing needs.” That is, they paid more than half their household’s income for housing and/or lived in substandard housing conditions. One in Seven American Families Have Critical Housing Needs

4.8 Million Low- to Moderate-Income Families with Critical Housing Needs Work the Equivalent of a Full-Time Job.

Cost is the culprit Most Working Families, with Critical Housing Needs, Pay at Least 50 Percent of Their Income for Housing

Homeowners Account for More Than Half of Working Families with Critical Housing Needs 47% 53% Homeowners 51.5% 49.6% 53.0% Renters 48.5% 50.4% 47.0% 2001

URBANSUBURBANRURAL Central City 40.1% 43.1% 39.5% Suburbs 42.3% 40.0% 42.5% Non-Metropolitan 17.5% 16.9% 18.0% Critical Housing Needs Are Not Only a “City” Problem

Compared to Native-Born Low- to Moderate-Income Families, Immigrant Families with Critical Housing Needs are More Likely… Are More Likely to Have Incomes Below 50% of the Local Median. Are More Likely to Depend on More than One Wage Earner. Immigrants Native-Born 57.1% 65.8% 33.8% 27.5% 6.9% 5.1% Have Similar Median Incomes But … Are More Likely to Live in Expensive Areas. Annual Income Immigrants $22,000 Native-Born $22,000 Average Rent Median Rent Immigrants $870 $809 Native-Born $771 $755

Compared to Native-Born Low- to Moderate-Income Families, Immigrant Families with Critical Housing Needs are More Likely… Are Less Likely to become Homeowners. ImmigrantsNative-Born Are More Likely to be Minority Households. Are More Likely to be Households with Children. 49.3% Immigrants 25.4% Native-Born 13.2% Immigrants 18.0% Native-Born 12.1% Immigrants 25.6% Native-Born 25.5% Immigrants 31.1% Native-Born Couple with Children Single Female with Children Single-Person Household More Than One Person with no Children

Nearly Six in Ten Working Immigrant Families with Critical Housing Needs are Hispanic Where 1.2 Million Immigrant Working Families with Critical Housing Needs Are From… Canada/Europe Latin America (except Mexico) Mexico Asia Other Percent in Group with Critical Housing Needs Percent in Group Crowded Rates of Critical Housing Needs and Crowding for Immigrant Working Families

What is Happening in the United States: Homeownership Market Annual Income Needed Elementary School Teacher Police OfficerLicensed Practical Nurse Retail Salesperson Janitor 2001 Median Priced Home $156,000 Area Median Annual Income (2001)

What is Happening the United States: Rental Market 2001 Fair Market Rent 2BR $721/month Area Median Hourly Wage (2001) Hourly Wage Needed to Afford 2 BR Retail SalespersonJanitor

Minneapolis – St. Paul, MN-WI Homeownership Market Annual Income Needed Elementary School Teacher Police OfficerLicensed Practical Nurse Retail Salesperson Janitor 2001 Median Priced Home $169,000 Area Median Annual Income (2001)

Minneapolis – St. Paul, MN-WI Rental Market 2001 Fair Market Rent 1BR $674/month 2BR $862/month Area Median Hourly Wage (2001) Hourly Wage Needed to Afford 1 BR2 BR Retail Salesperson Janitor Licensed Practical Nurse

National Housing Conference Senior Executive Roundtable Series New Orleans, LA – April 9, 2001 Seattle, WA – July 24, 2001 Portland, OR – July 26, 2001 St. Paul, MN – September 6, 2001 San Diego, CA – March 21, 2002 Philadelphia, PA – May 30, 2002 Providence, RI – July 29, 2002 Milwaukee, WI – October 30, 2002 Charlotte, NC – April 3, 2003 Columbus, OH – June 2, 2003 Portland, ME – August 6, 2003 Houston, TX – October 29, 2003

Local Barriers to Affordable Housing: Regulation, Resources and Resistance The Regional Approach to Affordable Housing: Is the Time Ripe? Private Sector Involvement in Affordable Housing: The Vital Partner Federal Involvement in Affordable Housing: Rethinking the Federal Role

OUTLOOK FOR THE FUTURE Limited Federal Resources Increased State and Local Level Activities Growing Private Sector Involvement? Greater Public Awareness and Support

National Housing Conference 1801 K Street, N.W. Suite M-100 Washington, DC Tel: (202) Web site: