Last week I was in a conversation with a local builder about what kind of housing will be needed going forward. Many factors influence the type of housing that needs to be added to a marketplace, including Household size, household types, income, and jobs.
I have begun digging into some general questions, starting out on our Regional area then moving them into the specific location we intend to add housing units in.
This is general enough information to share about our region. This data is available at the Metropolitan Council, which is pulled from the US Census and ACS reports.
The Twin Cities Household Size seems to have come back up to 2.5 in the latest 2010 Census. (notice how accurate the information is, 2009 has 2 sets of information from the ACS – which don’t match up but are in the ballpark of each other.)
Since this information was available I was curious to see the Homeownership Rate for the Twin Cities 7 County Metro Area. I wanted to see how the housing market bubble impacted our regional homeownership, it will also show us if more rental units are needed or owner occupied units needed.
The following is a pretty important factor to consider when adding product to the marketplace. The Household Type. There has been a lot of talk about the households changing dramatically, that there will no longer be need for the large homes because nobody is having kids anymore. Judging by these stats, there is some truth to that – but not as dramatic as those statements claim to be. We are seeing fewer children in the household makeups, but I would suspect when we get through this recession/recovery we will see that bounce right back up. I suspect many younger couples are waiting to gain employment before starting a family… (hence our “pent-up demand”).
A view showing percentage of 2000 Census vs the 2010 Census.
- The Twin Cities losing Population and the impact on the housing market. (craigkamman.wordpress.com)
- Twin Cities doesn’t have a housing inventory problem, we have a jobs problem. (craigkamman.wordpress.com)
- Minneapolis St Paul Building Permits and Housing Starts (craigkamman.wordpress.com)
- Twin Cities Population decline, by County (craigkamman.wordpress.com)