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Amid housing construction boom, rentals out of reach for low-income families

Luxury apartment building
A new 26-story luxury apartment high-rise in downtown Minneapolis is one of several large housing developments that was part of a $1 billion construction boom in Minneapolis in 2013.
MPR Photo/Brandt Williams

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Minnesota apartment construction is up nearly 70 percent over a year ago, but rentals are still out of reach for many low-income families, according to a new report by Minnesota Housing Partnership.

Average rents in the Twin Cities crossed the $1,000 threshold for the first time this spring, but guidelines from the US Department of Housing and Urban Development show that a household would require an income of $40,000 to afford such a home.

For apartments below that price, the vacancy rate is falling, making it harder for low-income families to find a place to live.

The report also found a 5 percent increase in the number of homeless school children compared to last year, with 8,300 students identified as homeless across four metro area districts this school year.

Chip Halbach, executive director of Minnesota Housing Partnership, joins The Daily Circuit to review the findings.