7.3 HRSR 01-04-2016 - Laserfiche WebLink

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DEMOGRAPHIC ANALYSIS Household Income The estimated distribution of household incomes in Elk River for5 and 2020 is shown in the following graphs. The data in Tables D-3 and D-4 was estimated by ESRI, Inc.The data helps in ascertaining the demand for different housing products based on specific cost levels. The Department of Housing and Urban Development defines affordab families as 30% of a households adjusted gross income. Maxfield Research and Consulting LLC uses a figure of 25% to 30% for younger households and 40% or mo generally have lower living expenses and can often sell their ho toward rent payments. A generally accepted standard for affordable owner-occupied housing is that a typical household can afford to pay 3.0 to 3.5 times their annual income-family home. Thus, a $50,000 income would translate to an affordable single-family home of $150,000 to $175,000. The higher end of this range assumes that the person payment and closing costs, but does not have savings or equity i would allow them to purchase a higher priced home. The following are key points: The median household income in Elk River in 2015was estimated to be about $78,305. Elk River has a higher median income compared to the Twin Cities Metro Are Overall, incomes are expected to increase by about 10% between 2015 and 2020, or about 2.0% annually. This will result in the median income in Elk River increasing from $78,305 in 2015 to about $86,198 in 2020. Between 2015 and 2020, the number of households will increase in all but two age grou in Elk River. The largest numerical gain will be in the 65 to 74 age group, with a projected increase of 228 households. Non-Senior Households In 2015, roughly 4% of the non-senior households (15 to 64 years of age) in Elk River had incomes under $15,000 (248 households). All of these households would be eligible for subsidized rental housing. Another 4% of Elk Rivers non-senior households had incomes between $15,000 and $25,000 (271households). Many of these households would qualify for subsidized housing, but some could also afford affordable or older market-rate rentals. If housing costs absorb 30% of income, households withes of $15,000 to $25,000 could afford to pay $375 to $625 per month. Average mon- bedroom units in Elk River are about $862 (shown in Table R-1 in the Rental Housing Analysis section). 11 MAXFIELD RESEARCH & CONSULTING, LLC.