Housing study helps local leaders address needs

Housing availability and affordability have been a need expressed by most cities in Carver County.

A recent housing study conducted by the Carver County Community Development Agency (CDA) with Maxfield Research and Consulting confirms the need and outlines in more detail the amount and types of housing that may be developed to meet the needs of current and future households in the county.

The last time the CDA conducted a county-wide study was 10 years ago. It also conducted specific city housing studies in 2017 to help cities develop their 2040 comprehensive plans. Much has changed since then, and the new data will provide fresh information for the CDA’s latest strategic plan, said Allison Streich, CDA deputy director.

Between 2010 and 2023, Carver County experienced an estimated 25 percent population growth (22,496 people), compared to 13 percent growth in the metropolitan area, according to the housing needs analysis. The county is projected to add nearly 20,000 people (17 percent growth) between now and 2030, again outpacing metro area populations and household growth.

Although the county is a net exporter of workers with more residents leaving the county for work versus non-residents coming here, the housing report indicates that with nearly 22,000 workers commuting to Carver County daily for employment, there appears to be a need to provide housing options for at least portion of those workers. More than 1,600 commute from over 50 miles.

Meanwhile the county is projected to add more than 10,000 jobs between now and 2040, and highway expansion projects – notably highways 212 and 5, will stimulate demand for new housing in the western half of the county, the report states.

The report indicates there is abundant need for both entry level affordable housing for young families and senior housing as the population ages.

In contrast, the housing analysis indicates the current median home value ranges from $360,000 - $470,000 in the eastern portion of the county, somewhat less, $241,000 - $294,000 in western county subdivisions. Meanwhile, with increased competition for homes and limited housing supply in recent years, the median resale price for detached single family homes increased 40 percent while resale prices for multifamily units jumped nearly 60 percent.

The median price for new construction homes in the county also has soared to over $577,000 for detached single family homes and more than $363,000 for multifamily units.

An estimated 17.6 percent of owner households are cost burdened, paying more than 30 percent of their income for housing, the report states.

In terms of rental housing, the median monthly contract rent was $1,164 during the reporting period, with rents varying widely by city. Victoria and Chanhassen have the highest rents, Cologne and Watertown the lowest.

At the state level the Local Affordability and Housing Act allocates some money to help counties and local governments develop and preserve affordable housing within their jurisdictions, Streich notes. The U.S. Department of Housing and Urban Development (HUD) also has announced funding to help public housing authorities provide assistance to families and individuals in need of affordable housing options.

The full 300-plus-page housing report, available on the CDA website goes on to provide other detailed information on county demographics, employment trends, housing characteristics and market analysis.

Streich has been sharing information from the report with various cities in the county as requested and is scheduled to have a conversation with Carver County commissioners at their July 9 board meeting. Armed with new housing data, the county and area cities will evaluate next steps in housing plans.