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2 | Page City of Little Canada Housing Study - 2025 Executive Summary The 2025 Little Canada Housing Study provides a comprehensive analysis of Little Canada’s housing market, demographic trends, land use, and affordability challenges. It serves as a foundation for future city planning efforts, zoning code evaluations, and discussions on housing policy and development. Key Findings 1. Diverse Population: Little Canada is a small but diverse community, with 40% of residents identifying as Hispanic or non-white. The city also has age diversity, with 30% of residents over 60 and 25% under 18, reflecting a range of housing needs. 2. Lower Incomes & Higher Poverty: The city has a lower median income and higher poverty rate than most reference communities and the Twin Cities Metro, trends that are likely to persist given lower educational attainment levels compared to neighboring cities. 3. Multifamily Housing Dominance: Nearly 50% of all housing units are in multifamily structures, a significantly higher share than in reference communities. However, multifamily housing is only permitted on less than 8% of buildable land, and much of it was built before 1974, which may present challenges related to housing quality and long- term viability. 4. Affordable Housing Supply & Cost Burden: Little Canada has the highest share of deeply affordable housing (30% AMI) among reference communities, and nearly 50% of the city’s housing stock is affordable at 60% AMI or less. Despite this, 40% of residents are cost-burdened, the highest rate among reference communities. 5. Large Single-Family Lots: Single-family parcels in Little Canada are larger than those in most reference communities, including more affluent suburbs. These lots often exceed the city's zoning requirements for minimum lot size and frontage. Modest zoning adjustments could allow for smaller-scale infill development and more efficient land use. 6. I-35E as a Geographic & Demographic Divide: The west side has lower incomes, higher vacancy rates, and higher cost-burden rates, while the east side has higher incomes, lower cost burdens, and more single-family housing. The area around Rice Street and Little Canada Road is particularly disadvantaged, with the city’s oldest population, lowest median income, highest vacancy rate, and highest cost-burdened rate. Next Steps The findings in this study will guide city planning efforts, zoning evaluations, and discussions on housing needs. The City Council and Planning Commission will use the study to assess how housing policy and land use regulations align with community priorities. Moving forward, this study will inform: