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sign on i -g 651-649-1710 Minnesota Housing Partnershjg��pon�l f M H P'$ i 2x4 11 REPORT— 2011 Quarter 2 (Released September 14,,, 2011) While some indicators, such as a reduction in mortgage delinquencies, bring welcome news, thi quarter many of the housing trends were worrisome. Foremost among them is a significant rise i homelessness among children and families, at least in the Twin Cities, where data is available. I For those who are employed, the news was not too bad. Average weekly earnings reached $811, compared to $774 a year ago. Yet the unemployed are not riding this same positive trend. The official Mate unemployment rate averaged 61.61%, down a hair from last quarter, but the rate inched upward each month, reaching 7.2% by July. In addition, US data Average Weekly Earnings, minnesotai suggest that the duration of unemployment can be $820, surprisingly long. In June 2011, unemployed workers 58010, reported being out of work for an average of 39.9 weeks $776 $7740" 5780, nationwide. Furthermore, official unemployment rates $760 exclude people who have not actively looked for work in $7601 the last four weeks, such as those who have given up $740, searching due to dim prospects. This deep long-term $720, 1 ............... .............. ............... I ............. T .............. r .............. ............... unemployment in the absence of increased government Q2 Q4 Q2 Q4 Q2 Q4 Q2 support places families at risk for homelessness. G8 08 109 09 10 10 11 Source: CurrentEmploymentStotistics (CES), MN DEED n The Twin Cities metro rental market continued to tighten in the second quarter, with the rental vacancy rate reaching a 10-year low. This trend reflects in part a slightly lower unemployment rate and higher earnings for workers. A steep increase in the number of foreclosed homeowners who are now renters since 2005, and limited construction of rental housing also contribute. As mentioned in the previous 2x4 Report, the number of multi-family units permitted from 2006, to 2010 in M1 innesota was the lowest in 50 years for any 5-year period. M1 eanwhile, rents marched upwards this quarter, while the low rental vacancy rate sets the stage for higher rents to come. Rising rent levels present a serious concern for low-income renters already severely burdened by the cost of rental housing. 0 This quarter, the rental vacancy rate in the Twin Cities metro fell to 2.4% - a 10-year low. A year and a half ago the vacancy rate was 73% 0 The average monthly rent rose to $921, compared to $902 a year ago. Low vacancy rates signal likely future rent increases. 0 14% of renters in non-luxury units were delinquent for rent this quarter. The mortgage delinquency rate and pre-foreclosure notice numbers heralded positive news again this quarter, indicating fewer homes entering the foreclosure pipeline process. Yet the actual number of foreclosures increased by a notable 9%. The entire increase in foreclosures, as measured by sheriffs' sales, is actually attributable to the 11-county Twin Cities metro area (up 13,%), while foreclosures in the remainder of the state were unchanged. The most dramatic metro increases were seen in Sherburne and Scott Counties, up 44% and 3,5% respectively. The increase in foreclosures seems counterintuitive, given that both pre-foreclosure notices and delinquencies have been trending downward. Staff from the Home Ownership Center • IVIN suspect that a deep backlog • foreclosures at the banks is causing the uptick. Foreclosure counselors are MI- P's "12 x 4" Narrative - 201111 Quarter 2 (April - June)