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...BUT MORE SUBURBS HAVE JOINED THE EFFORT
<br />By all measures, affordable rental development has become more broadly dispersed across the Twin Cities in the current decade.
<br />While only five cities added new rental units in 2010, between 12 and 15 cities were adding new projects each year from 2016
<br />through 2018. By the end of 2018, 48 suburban and exurban communities will have added new affordable rental projects during the
<br />decade, along with 21 central-city neighborhoods in Minneapolis and St. Paul.
<br />Successful, pioneering development of affordable rental housing in many suburban areas over the past nine years is helping pave the
<br />way for future projects in the years to come. Suburbs all
<br />across the Twin Cities – including communities with high
<br />affordable housing demand such as Edina, Rosemount,
<br />Dayton, Savage, Woodbury and Plymouth – have recently
<br />added new affordable rental units for the first time in decades
<br />(or ever), allowing them now to share in the great challenge of
<br />tackling the region-wide affordable housing shortage.
<br />With more cities providing new affordable rental housing, key
<br />public policy goals are advancing forward. As an example,
<br />roughly 2,600 new affordable rental units built since 2010
<br />are located within a quarter-mile of an LRT line (existing and
<br />planned), a bus rapid transit (BRT) line or the Northstar
<br />Commuter Rail Line. This means that 29% of new affordable
<br />units offer easy transit access for low- and moderate-income
<br />renters, a vital goal for public investments in both housing
<br />development and transit infrastructure.
<br />THE URBAN CORE LEADS THE WAY...
<br />With nine years of the decade tallied (through 2018),
<br />the pattern of affordable rental development in the Twin
<br />Cities is clear: the urban core communities provide the
<br />bulk of all units. Minneapolis and St. Paul together have
<br />accounted for more than 45% (4,048 units) of all new
<br />production this decade, while the close-in first-ring
<br />suburbs have added an additional 16% (1,395 units;
<br />chart at right). In producing 61% of all new units in the
<br />Twin Cities, the central cities and first-ring suburbs over-
<br />produce relative to their proportion of population (37%),
<br />households (38%) and jobs (46%; table below).
<br />Population, Households and Employment by Development Ring
<br />Twin Cities (7 Counties) l 2020 Forecast
<br />Affordable Rental Production at Local Levels
<br />Twin Cities (7 Counties) l 2010 – 2018
<br /> Population Households Employment
<br />Minneapolis + St. Paul 738,300 24% 308,500 24% 510,000 28%
<br />First-Ring Suburbs 422,210 13% 182,500 14% 325,530 18%
<br />NW, NE, SW, SE Suburbs 1,975,160 63% 768,330 61% 961,770 54%
<br />7-County Twin Cities 3,135,670 100% 1,259,330 100% 1,797,300 100%
<br />Source: Met Council
<br /> Total New Total New Number of Areas
<br /> Projects Units w/New Units
<br />Minneapolis 44 2,649 13 neighborhoods
<br />St. Paul 19 1,399 8 neighborhoods
<br />First-Ring Suburbs 19 1,395 17 cities*
<br />Southeast Suburbs 19 1,157 10 cities
<br />Northwest Suburbs 17 1,059 9 cities
<br />Southwest Suburbs 12 651 7 cities
<br />Northeast Suburbs 10 616 5 cities
<br />Total 140 8,926 69
<br />*Includes Ft. Snelling Territory | Source: Dougherty Mortgage Multifamily Database
<br />New Affordable Rental Units by Twin Cities Submarket
<br />2010 – 2018
<br />Central Cities 4,048
<br />Northeast Suburbs 616
<br />Southwest Suburbs 651
<br />Northwest Suburbs 1,059
<br />Southeast Suburbs 1,157
<br />First-Ring Suburbs 1,395
<br />MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES | 2
<br />PRODUCTION PATTERNS ACROSS THE TWIN CITIES
<br />THE CLEAR CONCLUSION: NEW UNITS SUCCEED IN MANY AREAS
<br />Affordable development in urban core areas leverages investments in public infrastructure, and often new projects fit well into the existing
<br />dense development pattern. But many mixed-use areas in the second- and third-ring suburbs also offer excellent characteristics for
<br />affordable housing, plus strong access to the 54% of metro area jobs that are found there. Sites in Bloomington, Minnetonka, Eden
<br />Prairie, Eagan, Burnsville, Maple Grove and other suburbs with high job counts would be ideal locations for new affordable housing.
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