2040 Comprehensive Plan: Envision Shakopee

Seniors and young professionals are at highest risk of cost burden

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Seniors and young people are key assets to the community that provide both stability and energy to Shakopee’s neighborhoods and economy. Housing affordability can impact these groups disproportionately as individual and household incomes are often lower or more uncertain than for mid-career professionals. As such, they are at particular risk of being unable to afford housing in Shakopee. As of 2016, approximately 35% of Shakopee householders between the ages of 25 and 34 earned below $68,000, meaning they cannot afford a typical home in Shakopee. This age group includes millennials, including young professionals and those starting new families and looking to build a future in Shakopee. Forty-four percent of those millennials that cannot afford a home are within $20,000 of the income threshold for home ownership affordability. As such, a marginal rise in incomes or fall in housing costs could allow almost 400 householders to afford to own a home in the city. Seniors, many of whom are on fixed incomes, are often unable to keep up with the rising costs of housing. In 2016, 80% of Shakopee’s residents over the age of 65 had a household income below $68,000, meaning they could not afford to purchase a typical home in Shakopee. Additionally, nearly 60% of seniors could not afford the average rent in the city as they have incomes below $50,000. Input from Shakopee residents indicates there is strong demand for more affordable, convenient, and accessible living options that allow seniors to stay in Shakopee. However, with limited affordable options for seniors, many will choose to stay in their long-time homes. This will limit the houses on the market in Shakopee and further drive up housing costs for residents, workers, and new families.

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83 ENVISION SHAKOPEE | SECTION III: COMMUNITY ENVIRONMENT