Progress made in several categories, need for housing support due to economic impact of COVID-19 and additional affordable homes continues
St. Paul — The 2021 Minnesota’s Housing Scorecard released today by Prosperity’s Front Door marks progress on six key goals, but also highlights ongoing concerns about housing affordability, a tidal wave of potential evictions on the horizon, and an affordable housing supply that is not keeping up with demand.
The Scorecard also highlights the additional importance housing has taken on in the year since the release of the first “Minnesota’s Housing Scorecard” in February 2020. During the COVID-19 pandemic, housing took on a whole new meaning, as stable housing became critical for personal and community health and safety.
Minnesota’s Housing Scorecard examines data and actions being taken related to the six long-term goals established in late 2018 by the statewide Minnesota’s Task Force on Housing.
This year’s Scorecard is being released as Minnesota looks back at one year since Governor Walz took action to combat the impacts of the pandemic via executive order. One year ago, Governor Walz issued an Executive Order placing a moratorium on evictions.
“The converging crises of COVID-19, persistent racial injustice, and rising economic insecurity have exacerbated housing instability across Minnesota and widened disparities between households of Black, Indigenous, and people of color and white households,” said Judy Johnson, Project Director for Prosperity’s Front Door. “Minnesota’s network of housing organizations and advocates have been working harder then ever to keep people in their homes and sheltered during the pandemic. At the same time, we are focused on tackling ongoing housing needs that continue to exist in our state.”
Key data from the Scorecard includes:
• There are fewer affordably priced homes and apartments as rent increases and home prices have continued to outpace wage growth – approximately 214,000 affordability priced homes have been lost since 2013 through 2018
• The number of homeless people living unsheltered has increased 145% since 2014 through January of 2020– from 795 to 1,949
• The gap between the Black and white homeownership rate in 2019 was 52 percentage points (77% vs. 25%), among the widest such gaps in the country
On the positive side:
• Minnesota is on track to hit the Housing Task Force’s goal of building 300,000 new homes by 2030 – a projected 29,381 homes were permitted in 2020, although not meeting today’s affordable housing demand
• Eviction judgments have declined over the last decade
• The federal Coronavirus Aid, Relief, and Economic Security Act funding was quickly allocated through Minnesota Housing to support the needs of households facing housing instability.
“When I reflect on where we are today, one year into the pandemic, I am struck by what we urged people to do when the state first shut down: ‘Stay home. Stop the spread. Save lives,’” said Lieutenant Governor Peggy Flanagan. “The first urgent message we had for our fellow Minnesotans was to stay within our own four walls, so we could protect ourselves and keep one another safe. Whether we’re in the midst of a public health crisis or building back to better, the Governor and I are committed to making housing a priority. All Minnesotans should have a place to call home.”
Minnesota Housing Commissioner Jennifer Ho said, “A year ago when we announced the release of the first scorecard, we talked about losing housing affordability and economic competitiveness. Those remain concerns. They didn’t go away; we’ve just layered a pandemic and its economic fallout on top. We’ve also witnessed the public outcry about the damaging effects of systemic racism. We need to apply well deserved pressure to the housing system to better meet the needs of Black, Indigenous and people of color in Minnesota. Last year we were striving to raise the profile of housing. Housing is a top tier issue now in a way it never was before.”
The 39-page 2021 Minnesota’s Housing Scorecard includes “Stories of Impact” by housing stakeholders from across the state, as well as data on the number of homes with rents at $1,000/month or less or for sale at $250,000 or less, residential building permits issued in Minnesota, eviction judgment rates, and homeownership disparities.
The full 2021 Minnesota’s Housing Scorecard and Stories of Impact are available online at frontdoorcampaign.org.
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