Affordable Housing Preservation: Preserve existing housing using targeted, priority-based strategies.
Minneapolis has less affordable housing than it did 10 years ago, and production of affordable housing is not keeping pace with the loss. There is a great need for the creation of new legally binding affordable housing as well as for the preservation of existing legally binding and naturally affordable housing). This need outstrips the resources and tools that are currently available to produce and preserve affordable housing; meeting the need will require new and expanded tools and resources.Since 2000, Minneapolis has lost roughly 15,000 housing units that are considered affordable for those earning 50 percent of the area median income. This is despite the City producing or preserving 8,900 such housing units.
The loss of affordable units is compounded by decreasing wages and rising rents. The median income of renters is down 14 percent from 2000 while median rent has increased by 11 percent. This is further evidenced by the fact that 50 percent of all renters are cost-burdened and 74 percent of low-income renters are cost-burdened.
Another factor impacting housing in Minneapolis is that its residents continue to change, and along with that their housing needs and desires change.
The City will seek to accomplish the following action steps to preserve existing housing using targeted, priority-based strategies.
- Create and strengthen strategies to retain naturally occurring affordable housing.
- Create strategies to retain existing housing types that are not currently being constructed in the marketplace, such as single room occupancy, large family and multigenerational housing.