Housing costs in rural Minnesota are making news

Housing trends: Minnesota worst in Midwest for affordable rents

What many may find surprising from this article is the fact that the lack of affordable housing is a big issue in rural areas, not just the Twin Cities. In many rural areas in Minnesota, rental housing supply is inadequate, resulting in rents that are very high compared to people’s income. And the four counties that have the highest percentage of people unable to afford a modest two-bedroom apartment are in greater Minnesota.

“We found that Minnesota actually had the worst affordability of any state in the Midwest,” said Leigh Rosenberg, research and outreach manager for the Minnesota Housing Partnership. According to Rosenberg, 54 percent of renters in Minnesota do not earn enough to afford a two-bedroom unit at the “fair market rent” She explains that this is the result of high housing costs as well as the fact that Minnesota’s minimum wage is set at the federal level, while many other states have a higher minimum wage.

Agency seeks to create affordable housing in Baxter

This article also highlights the need for affordable housing in greater Minnesota.

The Central Minnesota Housing Partnership (CMHP) has applied to the Minnesota Housing Finance Agency for funding to create affordable townhomes in Baxter, MN. While the building has not yet been approved, this case reinforces that rural communities are wrestling with this issue and trying to find solutions.

The townhomes have the goal of being affordable to low-income households. The property has established income limit guidelines that must be met for families interested in living there. According to these guidelines, a family of four with an income less than $35,520 could qualify to live in the townhomes. The project also has four units designated for families or individuals that have been experiencing homelessness.

Not only will the project address the issue of homelessness and affordable housing, it also meets current interests in building for energy efficiency, as the project will incorporate green building standards.

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Shari Hemmingsen, Housing Matters! Intern, and Jill Kilibarda, Education and Civic Engagement Program Manager, Twin Cities Habitat for Humanity