05.02 - Request for City Leverage to reduce cost of homes in Trailside Estates

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Below are some statistics that are relevant to the additional affordability needs in Trailside Estates: • Housing is typically considered affordable if it consumes 30% or less of a household's gross income. Generally, when households spend more than 30% of their income to meet housing costs,they do not have enough income to meet other basic needs or weather financial setbacks. • The supply of affordable housing in Crow Wing County is lagging behind demand. The unmet affordable housing need through the year 2010 is conservatively estimated at 4,436 low-income households. • Between 1990 and 2000, home prices in Crow Wing County rose 63%, while incomes rose only 26%. • A household in Crow Wing County needs to earn $45,095 annually to afford the median priced home at $142,300 • A family of four with two full-time wage earners needs a combined salary of$45,252 to afford the basic costs of living in Crow Wing County. Forty-two percent of jobs in Crow Wing County and surrounding counties pay less than the regional wage required to afford basic needs. *Information provided by Minnesota Housing Partnership • Fifty-six percent of households in Crow Wing County have annual incomes of less than $50,000. The table below shows the 30%affordability guideline of these income brackets: Income Range 30% of gross income $0 - $14,999 $0 - $375 $15,000 - $24,999 $375 - $625 $25,000 - $34,999 $625 - $875 $35,000 - $49,999 $875 - $1,250 *Information provided by Community Partners Research, Crow Wing County Housing Study 2006 Update These statistics should be referenced when looking at actual home purchase examples for Trailside Estates. The overall conclusion is that more local leverage is needed to lower the cost of the homes to make them affordable to workforce households in Pequot Lakes and the surrounding areas.