Housing analysis reveals pent-up demand
The City of Mora is pleased to announce the completion of a Comprehensive Housing Market Analysis, a significant step towards understanding and addressing the housing needs of the Mora area community. This analysis, conducted by Maxfield Research and Consulting, provides an in-depth examination of current housing market conditions and projects future housing needs up to the year 2035.
The Housing Market Analysis is a detailed study that evaluates the demographic and economic characteristics of Mora and the surrounding area. It reviews existing housing stock, assesses housing affordability, and analyzes market trends for both owned and rented housing. The study also includes specific recommendations for developing various types of housing, including for-sale, rental, and senior housing, to meet the projected demand.
Some of the key findings were:
- Mora’s rental market is very tight, with a total combined vacancy rate of 0.5% (two vacant units) among all market rate, affordable, and subsidized rental properties. The equilibrium vacancy rate for market rate rentals is considered 7%, which allows for normal turnover and adequate supply of alternatives for prospective renters.
- While there are needs across the housing continuum, feedback suggests that rental housing targeted to the area’s workforce and housing targeted to older adults (like townhomes and twin homes) are two of the most pressing needs in Mora.
- Recommendations to address some of the pent-up demand was to encourage modestly sized 32-36 unit apartment buildings and 10-12 unit rental townhome projects.
- Achieving any population and household growth in Mora will be highly dependent on the availability of suitable housing options in the community catering to a variety of household types, age groups, and income levels.
- The Mora area experienced a solid recovery of jobs post-COVID, and employment growth is anticipated over the next several years. Kanabec County is projected to add 284 jobs between 2024 and 2035 (6.6% growth). Labor availability will greatly impact the ability of Mora and the County to sustain employment levels and achieve the projected job growth. New housing will be needed to support economic development in the area.
City of Mora Community Development Director Kirsten Faurie said that in identifying opportunities for housing development, the analysis supports economic growth. New housing projects can attract new residents, boost local businesses, and create jobs, contributing to the overall economic vitality of Mora.
“One thing the analysis made clear was that new housing development is likely going to require public-private partnership in order to move forward,” said Faurie.
Those private-public partnerships mean collaboration between government entities and private sector companies to finance, build, and manage housing projects. Some ways the City of Mora and Kanabec County have collaborated to help finance housing in the past has been through tax abatement, which is a temporary reduction in property taxes for a project over a specific period of time.
The City of Mora is committed to using the insights from this Housing Market Analysis to guide future housing policies and projects. By addressing the Mora area’s housing needs, we can create a more vibrant, inclusive, and prosperous community.
The Comprehensive Housing Market Analysis project was funded in part by the Initiative Foundation. Learn more at www.ifound.org. Other support was provided by the Mora Economic Development Authority, Mora Housing and Redevelopment Authority, St. Clare Living Community of Mora, and the Kanabec County Economic Development Authority.
The a copy of the full analysis can be found here: https://www.ci.mora.mn.us/sites/g/files/vyhlif6086/f/uploads/mora_comphousing_1314-07.pdf