NDSU’s Center for Social Research has produced a housing assessment that may have statewide implications. The report was conducted in partnership with the North Dakota Housing Finance Agency.
The assessment, which forecasts the state’s housing and population projections through 2025, was released Oct. 5 at the 2022 Statewide Housing Forum sponsored by the North Dakota Housing Finance Agency.
The report provides an overview of current conditions and recent trends that affect housing dynamics in North Dakota. The study includes population and housing needs, forecasts and an examination of affordability, housing costs and recent market trends.
“The study is about providing community leaders, non-profits, state and local government officials and real estate developers the data and information they need to assess recent trends and current conditions to inform planning and decisions with the goal of ensuring safe and adequate housing in North Dakota,” said Nancy Hodur, Center for Social Research director.
After dramatic population growth since 2010, population projections suggest much more modest grow in the near future. The state’s population is expected to increase by about 10,000 by 2025, which means approximately 9,300 additional housing units will be needed.
“Such modest growth suggests the state’s inventory is relatively aligned with projected market conditions; however current market conditions suggest that is not the case. Average number of days on the market has declined across all income categories except the oldest and least expensive housing and the percentage of houses that are higher priced has increased. The percentage of homes at lower affordable prices has decreased since 2012,” Hodur said.
The state’s economy also expanded significantly since 2010. However, the increase in gross state product has not translated into an increase in household income across all income categories. While the number of low-income households declined and the number of higher-income household increased, there was little overall change in the number of middle-income households.
Home sale prices have increased substantially – by 51% from 2010 to 2020 and prices increased another 8% in 2021. The substantial increase in housing cost and inventory of affordable housing has led to a decline in home ownership rates across all income categories. Renters were also impacted by increasing prices. Median rents rose by 49% from 2010 to 2021.
“Findings suggest a greater need to focus on housing needs based on household characteristics and consumer preferences, especially for lower-income household and baby boomers,” Hodur said.
The assessment is available online. It consisted of a number of components, including a population and housing forecast, regional profiles and detailed statistical tables.
The Center for Social Research is an applied research institute that concentrates on interdisciplinary socio-economic research important to the state’s economy and communities.
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