No Sign of Relief For Rochester Area Housing Crunch
Rochester, MN (KROC-AM News) - Looking for an affordable house in the Rochester area? Good luck.
A new report shows the housing squeeze continues in Olmsted County - especially affordable housing.
The Rochester City Council will be briefed Monday on a report from the county Housing and Redevelopment Authority.
It shows there were only 5 single-family houses priced at under $150,000 on the market on Sept. 1st. Three were in Rochester and two in Dover. There were 22 houses in the $150,000 - $200,000 range on the market in Rochester, 2 in Eyota and one in Byron and Stewartville. A total of 43 homes in the $200,000 - $250,000 range were on the market with 34 of those in Rochester.
The situation is worse in the new single-family housing market.
Only 63 new homes were on the market on Sept. 1st and none were listed at under $300,000. The majority were selling for more than $400,000. The report shows fewer single-family homes are being built. An average of 300 were built each year between 2014-2018. The yearly average was 800 between 2002-2006.
How about apartments?
The report says “significant development” continues with 5500 planned/developed since 2015. But only 15-percent are considered affordable. The vacancy rate for affordable units is running at less than 2-percent.
Market rate rents for new apartments are priced at $1100-$1400 per month for one-bedroom units and $1300-$1800 per month for two-bedroom apartments.