2. MetroCOG workforce housing study

The sector of the workforce chosen for this study is households earning between $19,500 and $52,000, that is, between 40% and 109% of the median household income of $47,077. This large sector (37%) of the workforce has the most difficult time finding an affordable home to buy or rent in the private, unsubsidized market Business expansion and job creation are limited by dependence in a large part on growth from in-migrationS as well as new households formed by young adults entering the workforce. Constraints on the development of new housing affordable to this sector can dampen the region's growth momentum. The current workforce is also finding it more difficult to find housing it can afford, whether it is buying a first home or renting an apartment suitable to the household size and income. Interviews with key persons indicate that the region's economic growth has drawn as much as it can from the workforce within the two-county Metropolitan Statistical Area and is now drawing commuters from outside the region. The 2000 Census for the MSA found that 22,363 of the total of95,173 workers living in the MSA commuted 20 minutes or more to work. The Metropolitan Council of Government's commute data for 2000 identified 4,594 commuters coming from adjacent counties or further. In the last two years, housinl! costs and prices have risen faster than wal!es. From 2004-2005, average sale prices of existing homes (single family, condo, twin~all types) rose 9.5% and the average cost of new single-family homes rose 12.3% ($143,169 to $160,849). Only the average cost of new twin homes rose modestly at 2.2%--from $93,463 to $95,518. [Note: Cost is construction cost, not actual sale price, which would be higher.] Recent Housing Price/Cost Trends !:I!~f2QO.s:fu1f[;;^~);t::~1%~Chalf 'eUmli Average Cost, New Single Family' $ 143,169.00 $ 160.849.00 12.3% Average Cost, New Twin Home' $ 93,463.00 $ 95,518,00 2.2% Average Sale, Price Existing' $ 134,162.00 $ 146,912,00 9.5% Median Household Income' $ 45,225,00 $ 47,044.00 4.0% Sources: 1. Home Builders Association of Fargo-Moorhead, 2. Fargo-Moorhead Association The Dante, Company, Inc. & ESRI, Inc. 5 TIle Greater Fargo-Moorhead Economic Development Corporation's most recent analysis is very positive (or the area. Although payroll employment growth will grow morc slowly than recent years, business expansion and job growth will be in the service industries: professional/business services, retail/wholesale trade, education/health and leisure/hospitality. These latter three industries are typically the lower wage jobs. GFMEDC's analysis also notes that although housing is very affordable, affordabiliry is on the decline, 4 Linda S, Donnelly, A.I.e.I'. ;\ ugUS! 2(1(16