Minnesota has the most unaffordable rent in the Midwest

Categories: How We Live
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ishane
Most of our apartments completely suck, according to a new study.
Minnesotans who can't afford their rent outnumber those who can, according to a new study released today, landing us dead last in a ranking of affordable housing markets in the Midwest.

The National Low Income Housing Coalition released numbers today showing that Minnesotans need to be making, on average, $15.79 an hour in order to afford a decent two-bedroom apartment. Most of us are not.

The study considers paying up to 30 percent of one's income on rent to be "affordable," and the average fair market rent for a two-bedroom apartment is $821 a month. The number crunchers figured you need to make $15.79 an hour to make that work, but the mean wage in the state is only $11.61. That means about 55 percent of us are paying more than we can afford on rent.

In the metro area, the average rent skews higher for a two-bedroom--about $924 a month--and vacancy rates are at an all-time low of 3 percent. But the least affordable counties in the state are Winona and Aitkin Counties, and the problem is worst in the greater state.

"Rents tend to be cheaper, but there's a real shortage of good affordable rental housing," says Minnesota Housing Partnership researcher Leigh Rosenberg.

The newest numbers have plummeted our rank to dead last of the 12 Midwestern states. We beat out Illinois for this dubious distinction--they took last in 2010. Unsurprisingly, the Dakotas have some of the most affordable stock in the country. Of all 50 states, Minnesota ranks 28th.

You can play with specific numbers and average rent prices for all the counties in Minnesota here.


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15 comments
frlj
frlj

Well put it this way every landlord in Minnesota has to pay gas for heating (85% of them) and when I drive by a 4plax and see that on 8F temp three apartment have windows open for next 4h it hurts, also the government apprise same building way to hi so the landlords have come up with $5500 of property tax, then they have to pay each year $700 for rental license, then each Quarter $2300 for water and sewer, then there is thrash $120 each month plus furniture disposal, and on the end bank want they cut what is left for landlords is in equity, well equity will not pay the bills that’s why the rent is so hi in Minnesota mostly because of government they do not care if you can’t pay your bills if you are landlords they want they cut and that is it.

Flat Rent Jesmond
Flat Rent Jesmond

For apartment landlords, each vacancy represents a loss of income from rent-paying tenants for the time the apartment is vacant. Landlords' objectives are often to minimize the vacancy rate for their units.

miami beach apartments
miami beach apartments

As i was looking for more information regarding the rent related issues and their benefits, this blog seems to be really good.

tonyboyle
tonyboyle

I'll be renting with a room mate to cut down cost!

raymondsinn1
raymondsinn1

Minnesotans is very costly places. By increasing prices of the real estate so its apartment rent are increase which are not affordable by people and they are living it and sifted in home. I also one from them. This article explaining the real problem which is face by the people. So great I wish it is noticed by our government. Apartments for Rent Toronto

Drew
Drew

Please cite where the $11.61 - all of the information out there from Census 2010 or on Wiki states that incomes are about double that.

Antiquarian
Antiquarian

Taxes don't always influence higher rents unless you are a corporation that owns hundreds of units or conversely, one or two people who rent a home. Most multi-family dwellings can absorb a tax increase because its spread out among several tenants over several months that translate to maybe $30 increase per person each year. What is often driving rent increases is capitalism itself because dense areas become attractive for amenities and speculation for higher rents. 15-20 years ago, Uptown was a slum to live in and now we have million dollar condos.

Chuck
Chuck

That seems like a very flawed study. A more accurate measure would be to include one bedroom or studio apartments and compare these rents to the average income cited, or include other types of rental housing (renting rooms in a home, for example) or rent as a pecentage of income when a roommate shares the living space. The study doesn't seem to separate average income from average income of renters--two different things. People naturally rent where they can afford without the help of some meddling do-good agency producing studies to justify their taxpayer funded existence. If they can't afford the rent, they get a roomie or move. Simple.

vitajex
vitajex

Luckily, the home prices have cratered too.

So, now, all those people who can't afford the apartments they live in can move into a house they can't afford instead.

HURRAY for the free market!

Dsadasd
Dsadasd

Raymondsinn1, what the hell?  Go back to school learn how to speak properly please, and thanks.

CoCoNduluth
CoCoNduluth

Well if you move to Duluth,MN where no job wants to hire you let alone pay you more than $8.00 an hour to work a job even when you have a degree, Rent is still tripple what you can afford to live in the most dreadful, slum, places with holes in the walls and rooms the size of bathrooms for a lot of money! I would like to know who will look out for the Renters?

landlord
landlord

@Antiquarian I own and live in a 4-plex in MPLS.  My property taxes went from $1,200 to almost $6,000 in 6 years. 

uptwnr
uptwnr

Uptown a slum? It was never a slum. Working class is the term you're looking for.

Anon
Anon

Using Marcy Holmes as my example, a lot of the cheaper apartments are being bulldozed and turned into expensive lofts with correspondingly higher prices. Areas that tend to have apartments tend to have higher population densities which in turn push prices up. Not a fun place to be.

Someone's going to pin this on taxes, someone always does

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