In recent years, the loss of Naturally Occurring Affordable Housing (NOAH) has been getting much attention.
NOAH rental units are affordable without government assistance or subsidies and are typically older properties that lack amenities. In some cases, these properties are losing their affordability after being sold and rehabilitated/improved. The purpose of this analysis is to estimate the size of the loss and understand the types of properties losing their affordability and the communities losing units.
- In the Twin Cities metro area, roughly 1,300 affordable rental units are annually losing their affordability after a property sale. Statewide, approximately 2,000 affordable rental units are annually lost.
In the Twin Cities metro area, suburban communities are losing larger properties, while Minneapolis and St. Paul are losing smaller properties. While suburban communities account for 60% of the lost properties, they account for 90% of the lost units in the Twin Cities metro area.
- Class C properties account for most of the lost properties (76%); however, Class B properties are typically larger, accounting for 24% of the lost properties and 44% of the lost units.
- Two bedroom units are more likely to lose their affordability than studio units.
- NOAH units in higher rent communities are more likely to lose their affordability.
Download the full report at Minnesota Housing. Scroll down for “Loss of Naturally Occurring Affordable Housing (NOAH).”