New report: Housing in Minnesota is increasingly unaffordable and out of reach
Too many households in Minnesota are paying more than they can afford for rent. A new report from the National Low Income Housing Coalition highlights the growing gap between the average renter’s income and how much the rent costs. This has advocates and legislators calling for bold solutions.
According to the 2021 “Out of Reach” report, Minnesota renters need to make $21.78 an hour to afford the rent on a modest 2-bedroom apartment. Yet the average renter’s wage is $16.56. This difference means hundreds of thousands of households across the state are what is considered “cost-burdened” because they are paying more than the recommended 30% of their income toward housing.
The gap is worse for people who make minimum wage. There is not a single county in Minnesota where a minimum wage worker can afford a basic 2-bedroom apartment. In fact, someone would have to work 86 hours a week – every single week – to afford the Fair Market Rent average of $1,133 a month if they make minimum wage.
“This report lays bare what we sadly already know: home is getting harder and harder to sustain for too many of us,” says Lee Blons, CEO / President of Beacon Interfaith Housing Collaborative. “Home is the foundation for bright futures, but right now people across Minnesota are leveraging their futures to keep a roof over their head. If the budget only stretches so far, something’s got to give, so families are making hard choices about their health, their savings, what they can afford for their kids. Our current system is literally pricing people out of house and home.”
Beacon is leading an effort to alleviate these pressures for renters who face the biggest gaps between their income and the cost of rent. “Bring It Home, MN” rent subsidy legislation would ensure low-income households don’t pay more than 30% of their income to keep a roof over their head. The legislation would immediately improve the financial position of 550,000 people across the state.
“In order to build a future in Minnesota where everyone thrives, everyone needs access to a home they can afford,” says Representative Michael Howard (50A – Richfield), lead sponsor of the bill in the Minnesota House. “Whether we are talking about racial inequities, our achievement gap or our state’s economic competitiveness, all roads lead back to home. That’s why we need to pass Bring It Home, Minnesota.”
The legislation had 40 co-sponsors in the House during the 2021 session and has been endorsed by more than 30 organizations across the state.
“Studies have demonstrated that having a stable home leads to improved outcomes for children at school,” according to Senator Kari Dziedzic (60 – Minneapolis), who is authoring the Senate bill. “Stability means fewer health risks and visits to the doctor or the emergency room, greater opportunity to remain employed, less of a chance of slipping into poverty – all things we as a community, we as a state value.”
The pandemic revealed how close so many families are living to the edge of not having a home. As part of relief packages, Minnesota received more than $600 million in federal emergency rental assistance, a significant step to prevent a wave of evictions and more families experiencing homelessness. But the fundamental problem remains: too many Minnesotans cannot afford their homes.
“The ‘Out of Reach’ report makes it clear: we have to step up to meet the pressing need for truly affordable housing if we’re going to build a stable future for Minnesota,” remarked Blons. “We know what can get us there. We know what it will take. It’s time we decided that yes, everyone in Minnesota really should have the security of a home they can afford.”
