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The cost of buying a house has soared in Cook County. For those of us who live here, that’s not news.
But what might be news is just how many people are struggling.
So, how affordable is housing for Cook County residents? Not very, according to a 2021 housing report issued by Minnesota Housing Partnership (MHP).
The study was an eye-opener and didn’t include recent inflation costs for food, gas, heat, etc.
Cook County Administrator James Joerke presented this information to the county board at the March 28 meeting. However, the report was information only, with no action taken by the board.
Did you know that “Cook County is the only county in Minnesota to see a decrease in rent and a decrease in renter income?
Twenty-three percent of all households (622) rent. In 2000 the median rent was $675. In 2019 the median rent was $651, a four percent decline. However, a renter’s income in 2000 was $33,300, falling to $32,315 in 2019, a three percent decline.
The average home was valued at $158,655 in 2000 and rose to $240,100 in 2019. However, while home values rose, 51 percent of homeowner income rose only four percent from $62,715 to $64,952.
New construction is not keeping up with the demand for housing. Twenty-eight percent of the county’s homes were built before 1970, and twenty percent of rental units were built before 1970. In addition, only two multi-family units were permitted in 2019, and only 68 single family homes were permitted in 2019.
In 2021 there were 195 extremely low-income households and only 115 affordable units available to extremely low-income people.
In 2021, 317 homeowners who paid more than 50 percent of their income on housing were severely cost-burdened. Eleven percent (60 households) were renters, with thirteen percent of homeowners (257) falling in that category. This high cost to put a roof over their heads put those folks at risk of “being unable to afford basic needs like food and medicine.”
The number of households paying more than 30 percent of their incomes totaled 552 for homeowners and 132 for renters.
This list included 52 renters and 188 homeowners who made less than $20,000 annually. Next, 75 renters and 125 owners made between $20,000-34,999. There were no renters in the following category, $35,000-49,999, but there were 100 homeowners. Finally, five renters and 139 owners made over $50,000. Included in the final figure were 27 seniors who rent and 202 seniors who own their homes.
Across all 87 counties, homeownership disparities are above 65 percent for people of color, with most over 90 percent. In addition, the cost burden is higher for black, indigenous, and people of color (BIPOC) renters (52 percent) than white renters (44 percent) in Greater Minnesota.
In Cook County, seven percent of homes are owned by BIPOC (153), and 93 percent are owned by white people (1,916).
Wages are not keeping up with the rise of housing. “The medium earnings for most of the top in-demand and high-growth jobs in the Northeast region do not cover housing costs at an affordable level. As a result, those working at the median wage—especially those earning the minimum wage—cannot afford a two-bedroom apartment or the mortgage for a median-price home.”
In 2021 the income needed to afford a median-value home in Cook county was $66,694, but the average median income for a family was $57,432. To rent a two-bedroom apartment, someone needed to earn $28,560—a minimum wage employee was required to work 48 hours to afford a one-bedroom apartment.
In 2018 across northern Minnesota, on a given night, there were 942 homeless people, a rise of 16 percent since 2000. In addition, there were 358 homeless children and 82 homeless seniors.
Editor’s note: Recent home sale prices are only increasing in Cook County. In November 2021, Cook County Assessor Bob Thompson came before the county board with an update on sales and costs of housing since the start of the COVID-19 pandemic.
“Significant sales in the real estate market have resulted in less inventory of homes and cabins across the county, no surprise there, but the sales volume was shocking.
“There has been “roughly an 84 percent increase in the number of sales over the 2020 study period,” noted Thompson.
“From October 1, 2019, to September 2020, there were 325 sales versus 597 sales over the same time in 2021. Thompson said this was likely the highest percentage increase in the entire state.
“The median increase of a cabin or home in Cook County doubled from $168,000 in 2020 to $334,877 in 2021, a 99.3 percent increase, while the average price of a cabin or home is up 43.5 percent ($273,619 in 2020 to $392,650 in 2021).”
In 2023 housing is only getting more expensive in the county. Now what?
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