Housing Cost Burden
Access to affordable housing is a key component of a thriving economy. It is difficult for employers to attract and retain a labor force when affordable housing is lacking. Low- and moderate-income working families must cut back on other basic needs or work more hours, or endure longer commutes when there is insufficient affordable housing.
The U.S. Department of Housing and Urban Development considers households as cost burdened if their housing costs exceed 30% of their income.
The portion of Minnesota households who are paying more than 30% of their income has decreased since 2011. Housing costs for homeowners decreased due to more affordable home prices and low interest rates which encouraged refinancing. Minnesota's high homeownership rate coupled with the more affordable homeownership costs accounts for much of the decline in cost burdened households. A tight rental market and rising rents is limiting reductions in cost burdened renter households.
This document (.xlsx) provides the indicator data in table format.