10-11-1999 Council Packet - Laserfiche WebLink

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) s 1, :s y. necessarily in the right places at the right prices with the right services available. Affordability Housing costs may be too high for a large number of Twin Cities seniors. An up-to- date estimate of the extent of the problem will not be available until the 2000 Census. The rule of thumb in the housing market is that the cost of housing should not exceed 30 percent '' a household’s gross income. By that standard, half of all Twin Cities senior households cannot afford more than about $620 per month for housing. Household size makes a huge difference in housing affordability. Using rough approximations of Twin Cities senior income, here are the monthly housing costs that they could afford: $990 for married couples ($39,640 median income) $490 for single senior men ($19,790 median income) $390 for single senior women ($15,540 median income) In contrast, the median market rate for a one-bedroom senior apartment in 1998 was $840 a month. In 1999, the maximum rent for a subsidized apartment is .$636 for a two-person household and $556 for a one-person household. Even for a mortgage- free house, the annual property taxes, insurance, and utility costs could easily exceed 30 percent for lower-income seniors. Without a regional effort to increase affordable housing, seniors with lower incomes may still have trouble affording a place to live. In the next 30 years, senior income may ri.se as much as 80 percent (adjusted for inflation). Today’s housing facilities may also become more affordable as the buildings age and newer facilities are added. On the other hand, federal rent subsidies and other government programs that promote housing affordability have an uncertain future. Market-rate housing, by definition, will be priced as high as the market will bear. Without a regional effort to increase affordable housing, seniors with lower incomes may still have trouble affording a place to live. Location Senior housing is distributed unevenly among the .seven counties. Hennepin and Ramsey counties have a disproportionately large share of .senior housing units, even compared to their share of the senior population. Anoka and Dakota counties have somewhat less senior housing than their populations would warrant. Within each county, senior housing is not neces.sarily located in the highest concentrations of senior population. In the future, the fastest senior population growth will happen in the five suburban counties: Anoka. Carver, Dakota. Scott, and Washington. Since seniors appear increasingly resolved to stay in their own community and neighborhood, senior housing demand will be strongly localized. Huilding toward the senior boom Wilder Center for Fast Stetro SAIL