Region makes progress toward Framework goals
Despite the slowdown in the housing market, the Twin Cities metropolitan area is continuing to add enough housing to meet the region’s projected long-term needs, according to a new report by the Metropolitan Council.
New housing construction has had a dramatic downturn since 2005, but is still taking place at a pace to meet the region’s housing production benchmark.
Housing production tumbled to just under 12,000 units in 2007, down from recent peaks of more than 21,000 units annually in the years 2003 to 2005. However, for the first seven years of this decade, housing production averaged just over 17,000 units.
“There’s no question that housing production has slowed dramatically as a part of the national economic downturn,” said Peter Bell, Met Council chair. “Still, our average annual production in this decade is well within the target range of the 16,000 to 18,000 units a year needed to keep pace with our region’s projected growth between now and 2030.”
The housing statistics are included in the fourth annual update of the benchmarks used to measure the region’s progress toward achieving the goals of the Council’s 2030 Regional Development Framework. The 2030 Framework – adopted in 2004 and required by state law – is intended to help ensure the orderly, economical development of the region and the cost-effective delivery of regional services.
The 2030 Framework includes 22 benchmarks designed to measure the region’s progress toward achieving four overarching goals:
- Accommodating regional growth in a flexible, connected and efficient manner.
- Building transit ridership, slowing the growth in traffic congestion and improving mobility.
- Encouraging expanded choices in housing locations and types.
- Working to conserve, protect and enhance the region’s vital natural resources.
Bell said the latest update includes a number of encouraging signs, including the 14 percent growth in transit ridership since 2003.
Growth in transit ridership over the last three years has exceeded the regional benchmark. The long term goal is to increase transit ridership 50% between 2004 and 2020, and double it by 2030.
"Our long-term goal is to increase transit ridership 50 percent by 2020 and double it by 2030," he said. "To do that, we need to achieve annual increases averaging 3 percent. That’s a target we have exceeded since 2006." He attributed the ridership gains to rising gas prices as well as expanded transit options, most notably the new Hiawatha light-rail transit (LRT) line.
Bell said it also is encouraging to see that about 30 percent of the region’s growth has taken place in the central cities and developed suburbs over the last seven years, exceeding the Framework goal of 27 percent.
"This increased investment in the developed portion of our region not only helps maintain the vitality of these mature communities," Bell said. "It also allows us to take advantage of roads, sewers and other costly infrastructure that already are in place."
Bell said the benchmarks also indicate that the housing market is responding to the region’s changing demographics and housing needs, with the production of townhouse and multi-family units now exceeding that of single-family homes.
"The leading edge of the Baby Boomer generation is now moving into retirement," he noted. "A mix of housing types and prices enables more people to work, raise a family and retire in the same community," he said.