2. CCSR-HRSR 09-04-2012 SPEC JOINT

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DEMOGRAPHIC ANALYSIS Growth and Income Trends by Age of Householder Elk River 2012 to 2017 2,500 -r — $120,000 2012 $102,432 =2017 102,143 2,000 - —*-2012 Income - $100,000 — W5,969 - $80,000 0 ✓ 1,500 — $67,3 c ' °o c 3 49,329 — $60,000 m 1,000 —$60,444 .-i N o d rn — -- $40,000 0 _ $22,879 500 — 00 - $20,000 fg N 0 N $0 15-24 25-34 35-44 45-54 55-64 65-74 75+ Age of Householder Senior Households • The oldest householders were likely to have lower incomes in 2012. In Elk River, 8% of households ages 65 to 74 had incomes below $15,000, compared to 26% of households age 75 and over. Many of these low-income older senior households rely solely on Social Security benefits. Typically, younger seniors have higher incomes because they are still able to work or are married couples with two pensions or higher Social Security benefits. • Generally, senior households with incomes greater than $30,000 can afford market-rate senior housing. Based on a 40% allocation of income for housing, this translates to monthly rents of at least $1,000. About 200 senior households (75+) in Elk River (39% of senior households) had incomes above $30,000 in 2012. Seniors will often move from rural areas to cities such as Elk River that provide more medical and other services. • Seniors who are able and willing to pay 80% or more of their income on assisted living housing would need an annual income of $35,000 to afford monthly rents of$2,300, which is about the beginning monthly rent for assisted living in rural Minnesota. In Elk River, there were only an estimated 167 older senior (ages 75 and over) households with incomes greater than $35,000 in 2012. Seniors age 75 and over are the primary market for assisted living housing. MAXFIELD RESEARCH INC. 15