INFORMATION HRSR 03-24-2003 - Laserfiche WebLink

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City of Elk River Housing Plan Updated January 2003 • Housing Trends • A high demand for housing and low vacancy rates for the area have caused housing prices to rise substantially over the past ten years in Elk River and the surrounding area. • The City has a very tight rental housing market with a low vacancy rate of 1.7% according to the 2000 Census. A current rental analysis found an even lower rate of 0.5%. The average cost of a two-bedroom apartment is $670. A household would need to earn approximately $12.90 per hour to afford the average two-bedroom apartment. The 1999 average industrial wage in Elk River was $11.54 per hour, which could only afford a rent of$600 per month. According to the 2000 Census, the median rent in Elk River is $592. • The homeowner vacancy rate is also low at 1.4%. Housing values have increased substantially in Elk River. According to the 2000 Census, the median home value was $144,800. Sale prices in the area have been higher and in 2000 the median sales price was $160,000 with an average sales price of$.174,820. To afford the median sales price of$160,000, a household would need to earn over$50,000 annually. • Households age 25 to 34 are typically first time homebuyers looking to purchase entry- level homes. The median household income for this age segment is $49,319 which could • afford to purchase a home priced at approximately $156,000. • A comparison of the average wages paid by industries in Sherburne County found that most are not sufficient to afford the median cost of a home in Elk River and some sectors would not be able to afford the average cost of a two-bedroom apartment. The lowest wages are found in the Trade and Services sector. • The JOBS NOW Coalition found that the living costs in Region 7W (Benton, Sherburne, Stearns, and Wright County) are 14% lower than the metro area,but the average wages were 31% lower than the metro area. The study also found that the hourly wage required to meet basic needs was $13.84 for a two-parent household (1 earner) with two children. The average hourly wage for Region 7W listed in the report, which is based on 1999 wage data from the Minnesota Department of Economic Security is $12.65. • 3