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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 average industrial wage in Elk River was $11.54, which could only afford a rent of $600 per month. • The homeowner vacancy rate is also low at 1.4%. Housing values have increased substantially in Elk River. In 2000, the median sales price was $160,000 with an averages 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 your 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 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 according to the Minnesota Department of Economic Security is $12.65. 4110