Workforce Housing: The Key to Ongoing Regional Prosperity
This study examines the relationship between housing that is affordable to the typical worker in the Twin Cities (workforce housing) and the ongoing vitality of the Twin Cities region. By 2001, the lack of workforce housing had emerged as one of the most critical issues facing the region.
Family Housing Fund commissioned Maxfield Research and GVA Marquette Advisors to estimate the demand for workforce housing in the seven-county Twin Cities metro area as of 2001 and project the need for the following five years.
The study found that the lack of affordable workforce housing would leave the region unable to sufficiently accommodate new economic growth and the influx of workers from outside of the region. The study determined that an investment in workforce housing production would create a significant economic return; each dollar of subsidy investment would stimulate a net gain of $8.13 in economic benefit to the entire region over 15 years. The study estimated the region would lose a potential $265 million in combined consumer spending and business income per year if the shortage of workforce housing did not improve.
The region’s housing shortage has worsened since the release of this report. Read Family Housing Fund’s most recent analysis of the economic impact of our housing shortage.