St. Paul, MN (Embargoed until December 11, 2012) - In the third quarter of 2012, conditions improved for homeowners and the housing industry, while affordable rental housing became increasingly scarce for cash-strapped renters. The number of homeless families turning to Hennepin County for shelter reached a 12-year high.
According to the latest “2 x 4” Report by the Minnesota Housing Partnership (MHP), fewer foreclosures are in the pipeline, and Twin Cities home prices are starting to rise. Yet rental vacancy rates remain exceptionally low, in particular for more affordable apartments.
The 60-day mortgage delinquency rate fell to 4.6% in the third quarter of 2012 from a peak of 8% about three years ago. Pre-foreclosure notices and foreclosures are also trending downwards. Year to date, there have been about 30% fewer foreclosures in 2012 than in 2010. The anemic home-building industry is seeing new life, especially in construction of multi-unit housing, such as apartments.
Limited employment options, in combination with housing costs, helped push family homelessness in Hennepin County to a 12-year high. An average of 335 families sought shelter from county shelters each month this quarter.
For renters, especially for those with limited income, rental housing was difficult to come by. In the Twin Cities area, the vacancy rate for apartments renting for under $1,000 per month fell to 2.4% - an extremely low figure. Meanwhile, the job market is preventing 145,000 Minnesotans working part-time from finding the full-time work they’d prefer. Even more workers remain unemployed. Non-white workers and male workers are disproportionately limited to part-time work.
MHP’s “2 x 4” Report graphically depicts 2 sets of indicators for each of 4 key housing areas: the home ownership market, the rental market, homelessness, and the housing industry. Through quarterly updates, the report provides a concise overview of housing challenges facing Minnesota.
To obtain an embargoed copy of the report, please contact Leigh Rosenberg at 651-925-5543 or firstname.lastname@example.org.
After the embargo ends, see the full “2 x 4” Report including graphs, data sources, and analysis at: http://mhponline.org/publications/reports-and-research/2x4-report.