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DEMOGRAPHIC ANALYSIS Roommate households had the second highest rate of growth in Elk River during the 2000s. The number of roommates grew by a 55 %, or 160 households. This, however, was the lowest numerical increase of all groups. This reflects the trend in society of couples living together before marriage and delaying having children until later in life, as well as other non - family households "rooming up" and sharing housing costs during the Great Recession. Tenure by Income The following graph shows the number of renter households in Elk River by income cohort as of 2000 and 2013 (5 -year American Community Survey estimates). The data provided in Table D -6 is useful in that shows the housing options and preferences for households based on affordability. The Department of Housing and Urban Development determines affordable housing as not exceeding 30% of the household's income. It is important to note however, that the higher the income, the lower percentage a household typically allocates to housing. Many lower income households, as well as many young and senior households, spend more than 30% of their income, while middle -aged households in their prime earning years typically allocate 20% to 25% of their income. As income increases, so does the rate of homeownership. The 2013 estimates for Elk River indicates that 89% of those households earning $50,000 or more owned homes compared to 56% for households with incomes between $35,000 and $49,999, 54% with incomes of $25,000 to $34,999, and 50% of households with incomes of $24,999 or less owned their housing. Many of these lower- income homeowners are seniors who live on fixed incomes but have paid off of their mortgage. Although, many of the lower- income households rent their housing, the largest number of renters (397 households or roughly 22% of all renters) have incomes between $35,000 and $49,999 followed closely by those with incomes from $50,000 to $74,999 (374 households or 21% of all renters). Should these households allocate 25% of their income on housing, they could afford monthly rents of roughly $730 to $1,550 per month. The incomes near $35,000 could afford rents offered at most rental developments in Elk River while higher incomes could afford rents that are significantly higher than the rents at most market -rate apartment units in Elk River. Typically, renter households with incomes of $20,000 or less qualify for government - subsidized housing, where rents are often based on sliding scale (30% of income). Based on a 30% allocation of income, these households could afford monthly rents of no more than $500. As of 2013, there were 312 households in Elk River with incomes of $20,000 or less renting their housing. MAXFIELD RESEARCH & CONSULTING, LLC. 18