Apartment Report Shows Rising Rents, Less Affordability
A new report on apartment affordability shows vacancy rates at their lowest levels in 10 years, while average rent costs have increased dramatically. What’s more, cities in the northwest suburbs are seeing some of the sharpest increases.
The report by the nonprofit Minnesota Housing Partnership shows from 2010 to 2018 the average rent in Hennepin County rose 20 percent to $1,303.
Some of the biggest increases came in the CCX News viewing area. Golden Valley jumped 33 percent to more than $1,555 per unit. Maple Grove saw a 26 percent spike to $1,570.
Even cities like Brooklyn Park, which has more affordable housing, saw a 21 percent rise to $1,107.
Besides low vacancy rates and an increase in total renters, the report points to another reason for the apartment affordability problem: new construction is largely limited to high-end multifamily apartments. The report raises concerns about a growing affordable housing crisis.
“Communities in Hennepin County are losing affordability at an accelerating rate. Affordable housing is greatly lagging behind the need,” said Anne Mavity, executive director of Minnesota Housing Partnership. “What we do today to create and preserve affordable homes will make the difference between a thriving and equitable community, or exacerbate existing housing instability and inequality.”
You can see the full apartment affordability report at: https://www.mhponline.org/publications/rental-market-watch/issue-5-hennepin-county