An uneven recovery is unfolding in Minnesota five years after the housing collapse, according to a joint Minnesota Housing Partnership - Minnesota 2020 study. While a modest recovery is under way for middle- and upper-income homeowners, there's been virtually no recovery for those with more limited means, especially renters.
This week MN2020 and MHP hosted three press conferences highlighting the report findings and the continuing fallout of the foreclosure crisis and Great Recession on housing in Minnesota communities.
Wednesday's press conference featured Minneapolis and St. Paul Public Schools Superintendents, Dr. Bernadeia Johnson and Valeria Silva, who urged lawmakers to support $100 million in bonding for affordable housing.
"Homelessness among students is no longer uncommon in Minnesota; too many families are staying in homeless situations. Families need affordable housing," said Dr. Johnson. "Housing matters for students because it impacts school attendance and a child's ability to focus on learning."
The report notes homelessness rose markedly between 2006 and 2012, and that communities throughout the state have been impacted.
Thursday's press conferences in Duluth and Bemidji highlighted tough rental markets for renters with low-wage jobs. In Duluth, speakers included: Tina Sklors, Sherman Associates affordable housing developer; Sarah Priest, Community Action Duluth and Chair of Duluth Affordable Housing Coalition; and Shannon Redbrook, a Duluth resident.
In Bemidji, speakers included: Nikki Clancy, Headwaters Regional Development Commission; Laura Straw, Director of the HRA of Bemidji; and Lacey Tverstol, a resident of Conifer Estates housing development.
For a glimpse at what speakers shared in St. Paul, click here
Key Report findings include:
- Renters and many homeowners are still struggling, with 12 percent of households paying more than 50% of their income on housing.
- Fewer homeowners and more renters due to the foreclosure crisis, coupled with limited rental housing construction during the recession, has resulted in a shortage of safe, affordable rental housing in many areas of the state.
- Homeowners in parts of North Minneapolis and St. Paul's Eastside lost 50 to 60 percent of their home values between 2005-2006 and 2013.
- In St. Paul from 2000 to the 2010-12 period Home ownership rates overall fell from 61% to 49%. For non-white households, ownership rates fell from 43% to 25%, increasing an existing disparity.
- The exurban counties of Isanti, Sherburne, Mille Lacs and Chisago had the highest foreclosure rates among Minnesota's 87 counties.
- Homelessness rose markedly between 2006 and 2012. In Northwest, MN homelessness more than doubled since 2006 to almost 700 people per night.