EDA Agenda - 10/08/2025 (Workshop)AGENDA
WORKSHOP - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, October 8, 2025 – 4:45 p.m.
Academy Room, Monticello Community Center
Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig,
Rick Barger, Clinton Berglof, Councilmember Tracy Hinz, Mayor Lloyd Hilgart
Staff: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Tyler
Bevier, Anne Mueller, Sarah Rathlisberger
1. Call to order
2. Roll Call
3. Direct Housing Aide and Housing Trust Fund Ordinance Review-Discussion
4. Adjournment
MonticelloMN.gov
OFFICE: 763-295-2711 FAX: 763-295-4404
505 Walnut Street Suite 1 Monticello, MN 55362
10/8/25 EDA WORKSHOP
1. After reviewing the Housing Report, what areas do you think the EDA should focus on for use of
the housing trust funds? Examples: Senior affordable housing, affordable general-occupancy
housing, single-family home-buyer assistance, single-family energy code rehabilitation (income
eligible), interest rate buydown, etc.
2. Guidance from the Minnesota Housing Finance Agency (the reporting agency for the funds)
indicates that the initial state housing aid dollars must be committed by December 2026 and
spent by December 2027. Given this deadline for initial spending, what programs from above do
you think could be implemented most effectively? Please Note: Pending legal review the spending timeline
may not be applicable given that the funds have been placed into a Housing Trust Fund.
3. The establishment of the Housing Trust Fund provides a fund location for the state housing
dollars and also provides a dedicated fund for future EDA housing activities. Taking a long-term
view of possible housing support and programs, is the EDA interested in allocating additional
funds annually to the housing trust fund? From what source? (See ordinance for possible eligible
sources.)
MonticelloMN.gov
OFFICE: 763-295-2711 FAX: 763-295-4404
505 Walnut Street Suite 1 Monticello, MN 55362
Considerations:
o Like the Downtown Façade Loan Improvement Program, it is likely that the program(s) established
for the use of the funds may evolve over time.
o Review of current Wright County or other local housing programs to look for leveraging opportunity
or gaps will be completed based on the direction of the EDA.
o The EDA has 2 housing TIF Districts (Mississippi Shores and St.Ben’s) that offered senior affordable
housing. Both have been or will be decertified. Does the EDA want to work with both providers on
continuation of affordable units? If so, what is the realistic impact based on the limited funding
available?
1. 1-19 Mississippi Shores – This district was decertified in 2023.
2. 1-24 St. Henry’s/St. Ben’s – This district has a required decertification date in 2026. While the
PAYGO obligation is satisfied, the district can remain open because Ecumen continues to provide
documentation of providing affordable units (“income qualify”). They have no requirement to do
so and get no monetary benefit as it simply allows housing TIF to pool in that district for the EDA
to use on other qualifying projects.
2023 Housing Needs
&
Market Demand
CITY OF
MONTICELLO
v
Prepared by:
This document was prepared by MSA Professional
Services, Inc. with assistance from City Staff.
Project No.: 13731006
City of Monticello - Economic Development Authority
Steve Johnson, President
Jon Morphew, Vice President
Hali Sittig, Treasurer
Rick Barger
Olive (Ollie) White
Tracy Hinz, Council Representative
Lloyd Hilgart, Council Representative
Acknowledgements
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This Housing Study presents an in-depth look at the
City of Monticello’s housing conditions, market,
and needs. Though national discourse portrays
housing affordability as a universal crisis, we know
that every community is unique, having distinct
needs dependent upon local economic and social
conditions. This study examines these conditions
in Monticello, and proposes how housing needs
can best be met - especially in the context of a
community with pressures for growth.
PurPose
content
O1 INTRODUCTION
»Community Basics
»Population
»Households
»Age
»Income
»Projections Study Process
»Affordable Housing
»Housing Affordability
»Workforce Housing
»Who Needs Housing?
47 OWNERSHIP MARKET
»Affordability
»Tenure
»Owner Housing Stress
»Consumption
»Spatial Affordability
»Affordability Trends
»Entry-Level Affordability
»Availability
»Mortgage Status
»Unit Types
»Size
25 RENTAL MARKET
»Affordability
»Tenure
»Rental Housing Stress
»Consumption
»Unit Types
»Affordability Trends
»Cost
»Vacancy
»Size
»Age
71 OTHER MARKET SECTORS
»Homelessness
»Aging Populations
»Disability
79 LOCAL IMPACTS
»Assessment
»Improvement Value Ratio
»Available Lots/Lot Value
»Zoning
»Development Fees
95 UNIT DEMAND & RECOMMENDATIONS
»Ownership Demand
»Ownership Recommendations
»Rental Demand
»Rental Recommendations
»Senior Household Demand
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1
Rental Market
About
Monticello
1
Housing Needs and DemandCity of Monticello
2
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Printed By: smorrison, File: \\msa-ps.com\fs\Project\13\13731\13731002\GIS\13731002_RegionalMap_202000802.mxd
Print Date: 8/3/2020
Data Sources:Minnesota GIS Data
Monticello, Wright County, MN
Regional Map
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Monticello
Surrounding Municipality
Monticello Housing Study
0 0.5 1 Miles
Monticello Regional Context
This study was originally commissioned by the City
of Monticello’s Economic Development Authority
in May 2020. The plan was updated in 2023 to
include changes in the housing market since the
onset of the COVID-19 pandemic. The City has
identified housing as a critical issue that needs
to be addressed in order to provide opportunity
for existing and future residents, and continue to
grow the City’s economic and residential base.
City leaders have clearly identified these needs
based on feedback from various stakeholders,
as well as sustained demand that has provided
consistent proposals for both greenfield and
infill development. The purpose of this study is to
expand and revisit the City’s 2020 housing study.
This will help the City better understand its housing
market and to craft targeted strategies to improve
housing options.
There are two main components to all municipal
housing markets. The first component of this
market is all of the housing located in the City of
Monticello; the second component is the housing
in surrounding communities, many of those
homes occupied by people who work or shop
in Monticello but who chose to live elsewhere.
The housing physically located in Monticello is
the easiest to measure and analyze, and is also
the market portion that the City has the most
control over. Housing outside of Monticello is
more difficult to quantify and qualify, but it is
nevertheless important to a holistic understanding
of the market. This report attempts to document
conditions and trends in the overall market,
including insight in two key areas:
• How much demand exists for what types of
housing in the City
• General strategies to support housing needs
and development in the community
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
3
About Monticello
Project oversight
The study was initiated by the City of Monticello
Economic Development Authority. A working
group of staff in Economic and Community
Development regularly provided insight, including
review of data and material that comprise this
final report. These staff members met with MSA’s
project team throughout the project to provide
direction to the planning process.
interviews
In 2020, The planning team met with and
interviewed a variety of residents with knowledge
and insight into the local housing market,
including those who know it best: users of the
market themselves. These interviews included
realtors, lenders, developers, landlords, employers,
and employees. Feedback collected through
interviews often naturally gravitated toward similar
topics and knowledge, indicating a strong shared
understanding of how the local housing market
inherently functions. Upon updating this study in
2023, the interviewees from 2020 were contacted
once again and feedback was gathered on
changes to the housing market in Monticello
over the past three years. This feedback is used
throughout the report.
new AnAlysis
A few additional areas of study were incorporated
into the 2023 report update. These include: a
summary of construction activity in the City since
2020; a comparison of Monticello’s development
fees and its regional peers; a closer look at condo
and townhome development demand; and
updating the unit demand calculations to reflect
the impact of constructed and planned units since
the last report’s publication. Many tables and
charts throughout the report were also updated
with the most up to date data available.
dAtA notes
All American Community Survey (ACS) data
in this report utilizes 5-Year Estimates from the
most recent US Census Bureau data release,
which is the 2017-2021 data vintage. The U.S.
Department of Housing & Urban Development
(HUD) releases custom tabulations of ACS data
annually, known as the HUD Comprehensive
Housing Affordability Strategy (CHAS) dataset, that
better portrays housing statistics and need. The
CHAS dataset is also used throughout this report
where appropriate, though due to the custom
tabulations releases are slower than typical for
normal US Census data products. CHAS data
vintage utilized in this report is 2015-2019. CHAS
data is used to provide additional insight in certain
study components where newer data sources do
not provide necessary level of detail.
study Process
This study uses a variety of methods and data to better understand the housing market. Objective,
measurable data were collected from the City, the Multiple Listing Service (real estate listings and sales),
real estate aggregators, Wright County, the State of Minnesota, the U.S. Census Bureau, and the U.S.
Department of Housing and Urban Development. The City is at times compared to its regional peer
communities, to a wider context (county, metro) in a variety of ways, and also compared to itself in the
form of time-series data that reveal trends. This study also incorporates a series of interviews with people
familiar with the housing market. A community survey of area residents was conducted in 2020, and those
results are carried forward in this update.
Housing Needs and DemandCity of Monticello
4
monticello is a community in Wright County,
MN, located along the Mississippi River directly
adjacent to Big Lake and Sherburne County. The
larger Monticello region, though not part of the
Metropolitan Council, is considered by HUD to
be within the larger 13-county Twin Cities Metro
Region. Monticello is about 27 miles from St. Cloud,
26 miles from Maple Grove, and 50 miles from St.
Paul.
With the largest population of all adjoining
municipalities, Monticello is known for its natural
landscapes, including access to parks and trails
systems along the Mississippi River.
The City is notably located directly on Interstate 94,
providing direct access to the Twin Cities Metro,
but especially convenient access to the northwest
suburbs of Minneapolis, many of which are within
a 30-minute drive of Monticello’s downtown.
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Printed By: smorrison, File: \\msa-ps.com\fs\Project\13\13731\13731002\GIS\13731
002_RegionalMap_202000802.mxd
Print Date: 8/3/2020
Data Sources:
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Monticello, Wright County, MNRegional Map
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0 0.5 1 Miles
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
5
About Monticello
PoPulAtion growth has been steady across the
region throughout the past decade. Monticello
saw a net increase of 2,005 residents from 2010 to
2021 per American Community Survey estimates.
This represents a total percentage growth of 16.4%,
the third highest growth percentage among peer
communities. The closest community in growth
percentage is the City of St. Michael, which grew
at a similar rate (18%) as Monticello in the same
timeframe.
Increasing rates of household and housing unit
growth throughout the region predict steady
population growth at a healthy rate. Historical rates
of growth are not necessarily predictors of future
growth. Changing preferences, regional economic
conditions, and other factors contribute to past and
future housing choices for residents of the Metro.
Unit demand has been increasing, and continued
growth will follow - which is anticipated at 2%
annually in the Monticello 2040 Comprehensive Plan.
PoPulAtion
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Popula�on Trends
Mon�cello Buffalo Becker Big Lake St. Michael
PoPulAtion trends
Municipality
2010 - 2021Population Growth
AnnualPercentChange
Big Lake 1,955 1.69%
St. Michael 2,764 1.51%
Monticello 2,005 1.39%
Becker 518 1.03%
Buffalo 1,350 0.80%
PoPulAtion
growth rAtes
Source: American Community Survey 5-Year Estimates 2010-2021
Source: American Community Survey 5-Year Estimates 2010-2021
Housing Needs and DemandCity of Monticello
6
this section features a concise narrative of housing development activity (proposal, approvals,
constructed units) from January 2020 to June 2023. During this period, 1,137 units were planned or
constructed across rental, ownership, and senior housing markets in Monticello which was a construction
level not seen in many years. These projects are in various stages of development with many of these
units anticipated to be completed in the time after this report. Projects are broken down by market type
below.
owner mArket units planned or
constructed in this time period numbered
288 with most projects producing
single-family detached homes. Owner
units represent 25.3% of planned or
constructed development since 2020.
New ownership developments are spread
along the outskirts of City occurring on
greenfield sites.
Notable projects include the two
Townhome/Twinhome developments
that will increase the supply of affordable
ownership units in comparison to
traditional single-family detached
unit. These developments and future
townhome and condo units within
Monticello are explored in a later section.
rentAl mArket units planned or
constructed in this time period reached
historic highs with 595 new units, matching
national trends in unprecedented rental
unit construction. Rental unit production
has outpaced owner market units since
2020 representing 52.3% of planned or
constructed units. All new rental units are
in multi-family apartment developments.
The Savanna Vista project, part of the
Pointes at Cedar planned community,
will contribute 200 new apartments to
the City in part of a development that
will provide a connected, amenity rich
experience to residents and community
members.
Project
Name Type Year
Total
Units
Permitted/
Built Units
Approved/
Unbuilt
Units
Haven Ridge
1st Addition
SF
Detached
Homes
2021 27 27 0
Carlisle
Village 6th
Addition
SF Attached
Townhomes 2022 73 73 0
Featherstone
5th Addition
SF
Detached
Homes
2021-
2022 26 26 0
Edmonson
Ridge
SF
Detached
Homes
2021-
2023 54 24 30
Featherstone
6th Addition
SF
Detached
Homes
2022-
2023 21 21 0
Haven Ridge
2nd Addition
SF
Detached
Homes
2023-
2024 59 0 59
Stoney Brook
Village
SF Attached
Twinhomes 2024 28 0 28
TOTAL 288 171 117
Project
Name Type Year
Total
Units
Permitted/
Built Units
Approved/
Unbuilt
Units
Rivertown
Residential
Suites
MF Apts 2020 47 47 0
Deephaven
Apartments MF Apts 2022 165 165 0
Block 52 First
Addition MF Apts 2024 87 0 87
Savanna
Vista MF Apts 2024 200 0 200
Twin Pines MF Apts TBD 96 0 96
TOTAL 595 212 383
Source: City of Monticello
Source: City of Monticello
Source: City of Monticello
Haven Ridge 1st Addition
new mArket Activity
7
About Monticello
Unit mix within these developments fall heavily
in efficiency, 1-bedroom, and 2-bedroom units.
Although unit size within apartment projects is
subject to change, it would appear roughly only
5% of new units being created will offer 3-bedroom
space. This is at odds with some residents’
preference towards larger unit size that our
stakeholders have identified. Future developments
should consider reallocating additional 3-bedroom
apartments for families to their overall unit mix.
senior housing remains an important
challenge the City will need to address
as the Baby Boomer generation
continues to age. A mix of active
living homes and apartments, assisted
living, and memory care facilities
will be necessary to provide a range
of options to seniors. From January
2020 to June 2023, 3 new senior living
developments have been constructed
or planned totaling 254 units and
representing 22.3% of total planned
or constructed units during this time.
All of these projects are headed by
Headwaters Developments. Two of the
projects will provide 40% of their units at
prices affordable to elderly households
at 50% or below the Area Median
Income (AMI) at the county level.
In 2020, Willows Landing opened its door
and welcomed residents in a mix of 92
independent living, assisted living, and
memory care units within its facility.
Project Name Type Year Total Units Permitted/
Built Units
Approved/
Unbuilt
Units
Willows
Landing
IL Apt, AL,
Memory
Care
2020 92 92 0
Headwaters
West Senior
Apartments
(55+)
MF Apts
(40%
Affordable)
2024
102
(41
Aff)
0 102
Headwaters
Twinhome
Senior Living
(55+)
SF
Twinhomes
(40%
Affordable)
2024
60
(24
Aff)
12 48
TOTAL 254 104 150
Source: City of Monticello
Source: City of Monticello
Source: Jaybird Senior Living
The Pointes at Cedar
Willows Landing
Housing Needs and DemandCity of Monticello
8
household growth within the City grew at an
annual rate of nearly 1.5% since 2010, mirroring
consistent increases in population growth.
Counter to the longer term national trend of
shrinking average household size, causing the
number of households to grow faster than
population, Monticello has seen relative stability
in household growth and size since 2010. This
is a noteworthy trend as we consider how
housing demand is changing in Monticello
since this often manifests in demand for family-
sized housing units in both rental and ownership
markets driven by slightly larger family sizes
since 2010. Owner-occupied household size has
remained steady at 2.8 persons per household
in Monticello between 2010 to 2021. Renter
household size fluctuated over the same time;
it was 2.0 in 2010, increased to a high of 2.5 in
2016, and fell back to 2.2 by 202l. This, along
with work from home preferences, likely points
to consistent demand for family-sized housing
in both the ownership market and the renter
market. Across all tenures, the household size is
2.62 people per household according to ACS
estimates.
households
Municipality
2010 - 2021Household Growth
AnnualPercentChange
Becker 368 2.13%
St. Michael 1,110 1.82%
Big Lake 625 1.63%
Monticello 797 1.47%
Buffalo 705 1.09%
household growth rAtes
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Households
Mon�cello Buffalo Becker Big Lake St. Michael
household trends
Source: American Community Survey 5-Year Estimates 2010-2021
Source: American Community Survey 5-Year Estimates 2010-2021
9
About Monticello
Age trends can help predict current and future
needs of the community. As populations continue
to age, or add members to their households,
needs change as well. Since 2010, the City has seen the largest percentage increase amongst persons approaching and exceeding retirement age. Age cohorts above 50 are driving much
of the population change, with approximately
6% annual growth in the 50-64 and 65-79 age
categories. These persons and households have
likely aged into this category over the decade,
which is consistent with general trends of aging in
the County, State, and Nation as baby-boomers
reach retirement. The age cohort under 10 years
old fell between 2016 and 2020 while rebounding
slightly between 2020 and 2021. However the size
of this age cohort in 2021 was still less than what
it was in 2010. The young-adult to middle-age
cohorts remained relatively stable in comparison
over the past decade.
Age cohorts
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
0 - 9 Years 10 - 19 Years 20 - 34 Years 35 - 49 Years 50 - 64 Years 65 - 79 Years 80 and Over
Age trends
Age Cohort 2010 2021
Annual Percent Change
0 - 9 Years 2,128 2,009 -0.52%
10 - 19 Years 2,079 2,219 0.59%
20 - 34 Years 2,813 2,949 0.43%
35 - 49 Years 2,911 3,058 0.45%
50 - 64 Years 1,235 2,592 6.97%
65 - 79 Years 624 1,046 4.81%
80 and Over 355 362 0.19%
monticello Age cohort PoPulAtion chAnge
Source: American Community Survey 5-Year Estimates 2010-2021
Source: American Community Survey 5-Year Estimates 2010-2021
Housing Needs and DemandCity of Monticello
10
Projecting Monticello’s population growth into
the future is somewhat uncertain - and due to
its location and amenities is partially dependent
upon the availability and development of housing
units. For a community of this size, large multi-unit
developments or new subdivision development
could be absorbed into the market on an annual
basis, though would impact long-term projections.
As new development occurs, and new amenities
are added, demand will likely continue to increase
with overall desirability of location and access.
The community’s current comprehensive plan
projects a 2% growth rate annually, with the plan
offering development availability and appropriate
densities with potential to draw regional
households into the local housing market. Ranges
displayed show the impact of growth scenarios
at 2% annually, consistent with Monticello 2040
growth projections.
PoPulAtion Projections
0
5,000
10,000
15,000
20,000
Mon�cello Mon�cello 2040
PoPulAtion Projections
Monticello Population Projections 2020 2025 2030 2035 2040
Monticello 2040 13,700 15,255 16,637 18,145 19,738
monticello PoPulAtion growth scenArio
Source: Monticello 2040 Plan
Source: American Community Survey 5-Year Estimates 2010-2021 and Monticello 2040 Plan
11
About Monticello
household Projections
Monticello Household Projections 2020 2025 2030 2035 2040
Monticello 2040 5,083 5,476 6,106 6,808 7,650
monticello householdgrowth scenArio
Projecting Monticello’s future households is
tied to both future population projections as
well as anticipated persons per household
as demographics change and age. Across
the nation, reductions in household sizes are
expected to continue through at least 2040,
though Monticello has been relatively stable in its
household size over the past 10 years.
This recent trend is potentially due to the local
combination of young adults staying at home
longer, as well as in-migration of young-family
households with a preference for smaller-town
living within the Metro for various reasons.
Projection scenarios for the Monticello 2040
Comprehensive Plan anticipate the trend of
reduced household size into the future, with larger
household than population gains - again largely
dependent upon the appetite for development
and continued expansion of both housing
opportunity as well as local amenities.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Mon�cello Mon�cello 2040
household Projections
Source: Monticello 2040 Plan
Source: American Community Survey 5-Year Estimates 2010-2021 and Monticello 2040 Plan
Housing Needs and DemandCity of Monticello
12
Age cohort Projections
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Chart Title
0-9Years 10 - 19 Years 20 - 34 Years 35 - 49 Years 50 - 64 Years 65 - 79 Years 80 and Over
Age cohort Projection
As PoPulAtions Age, their housing needs begin to
change. While a family of four might be best suited
to a three- or four-bedroom home, once children
move out of the home they have the effect of
overconsuming in the market - using more housing
than they need. As householders continue to age
they may prefer to downsize, making upkeep and
care more accommodating to their preferred
lifestyle. Similarly, younger households (both single-
person and two-person) have needs for smaller
units prior to family creation, often seeking smaller
homes and apartments before needing larger
homes once they begin to have children.
Looking at projected population growth rates to 2050, the fastest growing populations are those age 65 and over - by a significant margin. There is a distinct need for housing tailored to this age group,
whether age-specific housing or policies that assist
aging in place in their own homes. The remaining
growth in the market is projected largely to be
driven by family-forming households and children
aged 0-9.
Age Cohort 2020 Estimate*
Projected Percent Increase Possible 2050
0 - 9 Years 2,292 12.2%2,573
10 - 19 Years 1,876 -3.7%1,806
20 - 34 Years 2,757 11.2%3,066
35 - 49 Years 2,598 17.5%3,053
50 - 64 Years 2,274 -26.5%1,672
65 - 79 Years 1,094 55.7%1,703
80 and Over 601 252.6%2,120
Age cohort rAtes
*Tied to projections in Wright County, not directly to 2018 estimates.
Source: Minnesota State Demographics Center
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
13
About Monticello
Data not updated in 2023 Housing Study
income trends
income And eArnings are central to housing
affordability. The more income that a
household earns, more housing falls within their
affordability threshold (in this report capped
at 30% of total income toward housing
cost). While incomes are mobile (households
can move place to place), housing units
are stationary. In practice, this means that
households will often commute, choosing
to live wherever they find the acceptable
balance among convenience, quality, and
affordability.
Among regional peer communities, Monticello has the lowest median and mean incomes - meaning that households who live in the City earn less on average than those who live in other communities, regardless of their place
of employment. Unlike the County, larger
percentages of Monticello’s population fall
into lower-income categories, and less of
the City’s population falls into high-income
categories. Part of this is likely due to retail
jobs and younger householders, largely living
in apartments in the community, as well as
generally lower housing costs in the region.
household income (2021)
city vAriAnce Fromcounty income distriBution
Lower % than County Higher % than County
Source: American Community Survey 5-Year Estimates 2018
Source: American Community Survey 5-Year Estimates 2021
-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%
Less than $10,000
$10,000 to $14,999
$15,000 to $24,999
$25,000 to $34,999
$35,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $149,999
$150,000 to $199,999
$200,000 or More
Difference
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Median Household Income Mean Household Income
Chart Title
Mon�cello Buffalo Becker Big Lake St. Michael Wright County
Housing Needs and DemandCity of Monticello
14
income is dependent on many factors, including
resident educational attainment and the overall
health of the economy.
Among City residents, educational attainment is generally lesser than across the entire County.
For residents 25 and over, the City has a larger
share of residents than Wright County whose
educational attainment is capped below a
Bachelors Degree or equivalent. This is consistent
with generally lower incomes, and reflective of
generally lower costs of the housing market.
Even considering educational attainment and
increased job volatility, unemployment for the
County remained at healthy rates pre-COVID. For
those in the labor force and seeking employment,
there is seemingly enough opportunity for residents
to secure employment, whether in the City or in
other accessible communities.
emPloyment indicAtors
-10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0%
Less than High School Diploma
Graduated High School
Some College or Associate's
Bachelor's or Higher
Variancecity vAriAnce Fromcounty educAtionAl AttAinment
Lower % than County Higher % than County
city oF monticello emPloyment indicAtors
7.1%
Unemployment
Rate
post-COVID*
90%
Graduated High
School
39%
Some College or
Associate’s Degree
19%
Bachelor’s Degree
or Higher
10%
No High School
Diploma
3.8%
Unemployment
Rate
pre-COVID*
Source: American Community Survey 5-Year Estimates 2018
Source: American Community Survey 5-Year Estimates 2018
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
15
About Monticello
locAl emPloyment
income is dependent upon accessible
employment opportunities, and Monticello offers
a variety of employers in different sectors - most
with a range of positions offering varying levels of
compensation and experience. Monticello also
benefits from access to Interstate 94 and proximity
to both the Twin Cities Metro and St. Cloud, which
provide more than 200,000 job opportunities
for residents within a reasonable commute. This
also means that the City is within a reasonable
commute for thousands of residents, and has large
potential to continue to capture shares of regional
growth from both local economic development
initiatives as well as for commuting households.
Major local employers (table on right) represent
nearly 3,800 positions available in the community.
Employment in the City acts as a regional draw,
resulting in daytime population growth from
outlying communities that evenly offsets daytime
population loss (balanced commuting patterns).
These in-commuters largely reside in other, more
rural portions of the County and metro - there is
not significant in-commuting from suburbs within
the 7-county area.
mAjor emPloyers, 2020
Employer Employees
Xcel Energy 680
Monticello Schools 678
CentraCare 535
Cargill 425
UMC 210
Walmart 209
WSI 135
Target 109
Bondhus 103
Home Depot 102
Dahlheimer Beverage 96
Suburban Manufacturing 91
Genereux-Westland 67
Twin Cities Die Cast 62
Camping World 59
Cub Foods 58
Aroplax 52
Production Stamping 50
Karlsburger Foods 49
Source: City of Monticello Community Development Department (2018)
Data not updated in 2023 Housing Study
Housing Needs and DemandCity of Monticello
16
occuPAtionAl AFFordABility
Major Monticello Occupation Classes Entry-Level Wage
Mid-Career Wage
Entry Level Rent Limit
Mid-Career Rent Limit
Entry Level Ownership Limit
Mid-Career Ownership Limit
Number of Workers
Office & Administrative
Support - All $26,340 $41,005 $659 $1,025 $88,502 $137,777 1,007
Sales & Related
Occupations - All $22,140 $31,810 $554 $795 $74,390 $106,882 765
Production
Occupations - All $26,370 $38,825 $659 $971 $88,603 $130,452 659
Transportation &
Material Moving - All $23,445 $36,210 $586 $905 $78,775 $121,666 649
Management
Occupations - All $55,760 $102,995 $1,394 $2,575 $187,354 $346,063 618
Food Prep & Serving
- All $21,420 $25,210 $536 $630 $71,971 $84,706 526
Healthcare
Practitioners & Related
- All
$42,105 $74,885 $1,053 $1,872 $141,473 $251,614 381
Business and Financial
Operations - All $41,795 $66,300 $1,045 $1,658 $140,431 $222,768 238
Educational Instruction
& Library - All $27,740 $52,495 $694 $1,312 $93,206 $176,383 233
wAge rAnges of employee incomes (both
between different occupations and within career
paths) have a direct impact on the amount of
money they can afford to spend on housing in the
City of Monticello. Using the American Community
Survey of the US Census Bureau to identify
common occupations in the City and associated
hybrid-wage data from the US Bureau of Labor
Statistics, general income ranges for positions can
be translated into housing “affordability limits” for
both rental and ownership markets.
Affordability limits represent the amount that could
be paid monthly for all housing costs - including
taxes, utilities, insurance, etc. - without paying more
than 30% of total income toward housing.
For many of Monticello’s most common occupation groups, affordability limits indicate modest monthly housing costs are most appropriate to ensure enough residual income for other necessary expenses. Though the numbers below represent
single-person households, tightening housing
markets and increased cost of ownership still
impact and limit many households that may wish
to purchase within Monticello’s ownership market.
Source: 2019 Bureau of Labor Statistics. BLS offers data for Minneapolis and St. Cloud Metro areas - the numbers above represent an average of both Metro regions (though wages are comparable between
the two). Entry-Level Wage is considered to be the 10th Percentile of reported Wages. Mid-Career is considered to be the Median (50th Percentile) of reported wages. Number of workers Age 16 and Older
per 2014-2018 ACS Estimates. Number of workers is reflective of 2018 ACS 5-Year Estimates.
Data not updated in 2023 Housing Study
17
About Monticello
emPloyment locAtion for residents who live in
the City of Monticello varies, with a large share (48%) commuting into metro counties daily for work. Notably, a significant share of residents
who commute into the metro are traveling well
into it during their daily commute, bypassing
other employment centers that exist in both first-
and second-ring suburbs. The most common
place of employment for residents besides
the City of Monticello itself is Minneapolis, with
over 450 commuters daily by the most recently
available data.
Other common destinations include Plymouth,
Maple Grove, Rogers, St. Paul, and Eden Prairie. This is consistent with the 2020 community survey responses, in which 48% of all respondents indicated that their primary place of employment was either “Twin Cities”, or directly named a first- or second-ring suburb of the Twin Cities in a comment. As issues with housing access
and affordability continue in the larger region
and transit access is increased, coupled with
individual preference some households have for
smaller communities, this share is likely to remain
a strong portion of the housing market within the
City.
Though preliminary, impacts of COVID were
mentioned in the community survey and are
worth considering in future growth. Several
respondents indicated working from home in
addition to other COVID-influenced factors in
their housing and commuting, and as work-
from-home accommodations become more
prevalent, this could begin to impact the local
market as households with a preference for
smaller-town living no longer find it necessary to
remain in the City for their employment. It is likely
this will have less of an impact on Monticello than
surrounding communities (as key transportation
corridors already eased access to the Twin
Cities), though there is still potential for impact
and this dynamic should be tracked in the
coming years.
commuting trends
monticello resident toP PlAces oF work, 2020
Place of Work Resident Employees
Monticello 1,303
Minneapolis 457
St. Cloud 305
Plymouth 279
Buffalo(City)269
Maple Grove 267
Rogers 221
St. Paul 207
Albertville 182
Elk River 176
Eden Prairie 147
St. Michael 144
Brooklyn Park 138
Bloomington 117
Minnetonka 108
Coon Rapids 107
Ostego 107
Golden Valley 94
Big Lake 83
Chanhassen 77
St. Louis Park 77
Anoka 66
Edina 64
Source: US Census OnTheMap 2020
Data most recent vintage.
Housing Needs and DemandCity of Monticello
18
commuting trends
commuting will continue to remain a factor for
future housing decisions and growth. As scenarios
in the comprehensive plan update focus on
development potential, availability of units based
on future land use decisions and development
potential will directly impact the commuter-
share that Monticello captures out of the Twin
Cities market. While 52% of current residents
work in places outside of the 7-county metro,
an increasingly large share commute into metro
counties on a daily basis.
For example, 48% of Monticello residents work
within the 7-county metro, while regional
communities display shares of 48% for Buffalo, 53%
for Big Lake, and 38% for Becker. Key differences
include community size, access to amenities,
and ease of transportation - which may position
Monticello to continue to see housing market
demand pressures from potential out-commuters.
county oF emPloyment
34%
49%
8%
9%
Hennepin Wright Other Metro County Other Non-Metro
county oF emPloyment For monticello residents
Source: US Census OnTheMap 2020
Data most recent vintage.
Source: US Census OnTheMap 2020
Data most recent vintage.
33%
33%
15%
19%
6%
1%2%
33%
5%
1%
6%5%
1%
33%
0%
10%
20%
30%
40%
19
About Monticello
A BAlAnced housing mArket requires new unit
production to keep pace with new households
moving into the market. This is discussed in more
thorough detail within the following chapters, but
at a most basic level, housing unit production must
match increases in demand (in-migration and
new household formation) in order to continue
to provide a balanced housing market for all
residents and would-be-residents of the City.
This includes unit production at a variety of price
points that serve the income needs for households
currently working in the City, as well as higher-
priced housing for choice commuters and users
that have a greater degree of mobility, or choices,
within the housing market. Though housing unit production has been at record levels in recent years within the County, households were added at a greater rate, indicating a shrinking vacancy rate and suggesting more competition for housing units. This is a common dynamic in housing markets
since the Great Recession.
regionAl growth
0
200
400
600
800
1000
1200
1400
2013 2014 2015 2016 2017 2018 2019 2020 2021
Households Added Housing Units Added
wright county growth
2013 2014 2015 2016 2017 2018 2019 2020 2021
Households Added 167 81 201 622 681 678 996 855 1,193
Housing Units
Added 126 287 259 319 756 529 581 772 1,264
Annual Gap -31 +206 +58 -303 +75 -149 -415 -83 +71
wright countyProduction & growth
Households Added Housing Units Added
Source: American Community Survey 5-Year Estimates 2013-2021
Source: American Community Survey 5-Year Estimates 2013-2021
Housing Needs and DemandCity of Monticello
20
regionAl growth
tightening housing markets within the County
can be seen more readily when the annual
addition of both housing units and households
are viewed cumulatively. While a healthy supply
gap remained through 2015, data indicates an
increase in housing demand from household
growth in the County, which occurred at a rate
higher than that of housing unit construction. With
the gap growing tremendously in the last 3 years.
Tighter housing markets impact the market in
various ways - most notably through decreasing
the amount of vacancy in both ownership and
rental markets. Decreasing vacancy shifts market
balance toward sellers and landlords in both
sectors, and often result in increased competition
for units, increased prices, and can lead to
decreased stability for individual households
whose incomes may be capped at levels that
cannot sustain increasing housing costs.
2013 2014 2015 2016 2017 2018 2019 2020 2021
Households Added 167 248 449 1,071 1,752 2,430 3,426 4,281 5,474
Housing Units
Added 136 423 682 1,001 1,757 2,286 2,867 3,639 4,903
Cumulative Gap -31 +175 +266 -70 +5 -144 -559 -642 -571
wright county cumulAtive Production & growth
0
1,000
2,000
3,000
4,000
5,000
6,000
2013 2014 2015 2016 2017 2018 2019 2020 2021
Households Added Housing Units Added
wright county growth
Source: American Community Survey 5-Year Estimates 2021
Source: American Community Survey 5-Year Estimates 2013-2021
21
About Monticello
emPloyee housing is found both inside and outside the City. Per the U.S. Census, 4,000-5,000 workers live
outside Monticello and commute in for work, slightly a greater amount commute out of the City for work,
and 1,000-2,000 persons both live and work in Monticello.
inFlow/outFlow oF PrimAry joBs, 2020 toP emPloyee PlAces oF residence, 2020
Municipality Commuting Employees
Monticello 1,303
Big Lake 443
Buffalo (City)241
St. Cloud 208
St. Michael 165
Becker 162
Ostego 158
Elk River 132
Clearwater 74
Albertville 69
Maple Grove 67
Ten municipalities other than the City of Monticello in the table on
right represent 1,719 employees whose primary job is in Monticello -
26% of all employees that commute into the City daily for work.
Everyone wants a safe, stable home
they can afford in a community of their
choice, but this is not the reality for many
Minnesotans. Housing costs are
outpacing income growth, and more
people are struggling to find and
maintain housing.
Nearly half a million lower-income
households [in Minnesota] are spending
more than 30% of their income on
housing.
- Minnesota Housing Finance Agency 2019 Program Assessment Report
Source: US Census OnTheMap 2020
Source: US Census OnTheMap 2020
Housing Needs and DemandCity of Monticello
22
Local Affordable
Housing
Definitions
AFFordABle housing is housing that serves the
residents currently living in a community or wanting
to move to a community, especially residents with
no income up through residents making 80% of the
area median income (less than 100% AMI).
However, these numbers are calculated by
HUD using family incomes for the Minneapolis-
St. Paul Metro. If calculated locally using a
similar methodology, the income categories for
households already living in Monticello would be
much lower, as indicated in the table below.
In Monticello, the area median income (as
defined by the U.S. Department of Housing
and Urban Development and applied by the
Minnesota Housing Finance Agency) is $86,444 for
a family of 4. This means that the 80% income limit
is $69,155 for a family of 4.
Funding for newly constructed affordable housing
often comes through subsidy that offsets costs of
construction and/or operation, primarily through
federal tax credits awarded by the Minnesota
Housing Finance Agency. This allows rents to
be set at an amount that is considered to be
manageable for lower-income households, while
also ensuring they have residual income to afford
childcare, transportation, healthcare, and all other
amenities necessary for personal and family health
and stability. Many housing subsidy programs set
income limits to qualify households, typically a
percentage of the area median income, adjusted
by household size. Other forms of affordable
housing can include:
»Naturally Occurring Affordable Housing
»Housing Operated by Non-Profits
»Vouchers and Other Federal Programs
»Housing supported through TIF
Median Family Income 1 2 3 4 5 6 7 8
Monticello
$86,444
(100%
AMI)
Extremely
Low
Income
(30% AMI)
$18,153 $20,747 $23,340 $25,933 $28,008 $30,083 $32,157 $34,232
Very Low
Income
(50% AMI)
$30,255 $34,578 $38,900 $43,222 $46,680 $50,138 $53,595 $57,053
Low
Income
(80% AMI)
$48,409 $55,324 $62,240 $69,155 $74,688 $80,220 $85,752 $91,285
locAl household income cAtegories
Persons in Household
Source: American Community Survey 5-Year Estimate for 2021 Family Income Adjusted per HUD FY Income Limits
22
23
About Monticello
Local
Housing
Affordability
housing AFFordABility describes the relationship
between housing cost and household income.
Affordability is measured at the household level,
in terms of the percentage of gross income that
goes toward housing costs. The widely accepted
standard for “affordable” is 30% of total household
income going to housing. For renters, housing
costs include contract rent, utilities, and renters
insurance. Homeowner costs include principal,
interest, taxes, insurance, and utilities.
This measure is relative, meaning that higher
income households have the choice of many
homes within their budget, while lower income
households generally have fewer options that
would be affordable within the housing market.
residuAl income describes the remaining income
a household can pay toward other expenses or
save after housing and other costs of living are
accounted for. As most other costs are fixed, most
households pay the same for them regardless of
how much they earn (e.g. food, childcare, etc.).
For example, a Monticello household of 2 adults
and 1 child earning $82,500 could comfortably
pay $2,063 in housing costs a month and still
have nearly $1,400 left over. The same household
earning $52,500 annually (which equates to one
full time job at $25/hour) could afford $1,313
in monthly housing cost, but after other fixed
expenses would not have enough money to pay
30% or less, likely sacrificing expenses elsewhere to
pay for housing.
exAmPle monthly costs:
2 Adults
1 Child
Annual
Income
= $52,500
2 Adults
1 Child
Annual
Income
= $82,500
30%
housing
limit =
$1,313
Costs
Monthly
Income $4,375
Transportation ($1,421)
Food ($683)
Childcare ($701)
Medical ($647)
Income left
for Housing &
Other Expenses
$923
30%
housing
limit =
$2,063
Costs
Monthly
Income $6,861
Transportation ($1,421)
Food ($683)
Childcare ($701)
Medical ($647)
Income left
for Housing &
Other Expenses
$3,409
Housing Needs and DemandCity of Monticello
24
Local vs. Regional
Workforce Housing
workForce housing is housing that is affordable
to the workforce in a community regardless of
income. Because incomes within the workforce
vary (pg. 14), a range of housing options is
needed to fit different needs. Workforce housing
means ensuring a supply of affordable housing
for employee households that earn minimum
wage - and ensuring appropriately priced housing
for moderate to high income earners in both the
rental and ownership markets.
Income categories below are calculated based
on HUD methodology, and can be used to
determine appropriate monthly housing costs for
different households in Monticello.
housing vAriety is a necessary component in
a healthy housing market, as households have
a variety of preferences and needs that impact
where and how they can live. A healthy local
economy requires a variety of housing to serve
area employees including various structure types,
sizes, locations, and price points.
workForce AFFordABility is different among
essential members of the workforce. Management
employees, service workers, municipal workers
(police, fire, etc.) all have housing need, while all
generally desire cost-appropriate housing that
allows enough residual income to support other
necessary expenses.
Monthly Housing Cost Limit Household Income 1 2 3 4 5 6 7 8
Monticello
$2,161
(100%
AMI)
Extremely
Low
Income
(30% AMI)
$454 $519 $583 $648 $700 $752 $804 $856
Very Low
Income
(50% AMI)
$756 $864 $972 $1,081 $1,167 $1,253 $1,340 $1,426
Low
Income
(80% AMI)
$1,210 $1,383 $1,556 $1,729 $1,867 $2,006 $2,144 $2,282
housing AFFordABility limits
Persons in Household
Source: American Community Survey 5-Year Estimate for 2021 Family Income Adjusted per HUD FY Income Limits
24
25
About Monticello
AFFordABility within the metro varies, as incomes are different for residents of different areas. For
example, the following are “affordable” housing costs at three different levels: the City of Monticello,
Wright County, and the 13-County Metro.
Monthly Housing Cost Limit Household Income 1 2 3 4 5 6 7 8
Monticello
$2,161
(100%
AMI)
Extremely
Low
Income
(30% AMI)
$454 $519 $583 $648 $700 $752 $804 $856
Very Low
Income
(50% AMI)
$756 $864 $972 $1,081 $1,167 $1,253 $1,340 $1,426
Low
Income
(80% AMI)
$1,210 $1,383 $1,556 $1,729 $1,867 $2,006 $2,144 $2,282
monticello AFFordABility limits
Monthly Housing Cost Limit Household Income 1 2 3 4 5 6 7 8
Wright
County
$2,709
(100%
AMI)
Extremely
Low
Income
(30% AMI)
$569 $650 $732 $813 $878 $943 $1,008 $1,073
Very Low
Income
(50% AMI)
$948 $1,084 $1,219 $1,355 $1,463 $1,571 $1,680 $1,788
Low
Income
(80% AMI)
$1,517 $1,734 $1,951 $2,168 $2,341 $2,514 $2,688 $2,861
wright county AFFordABility limits
Monthly Housing Cost Limit Household Income 1 2 3 4 5 6 7 8
Twin Cities
Metro
$3,123
(100%
AMI)
Extremely
Low
Income
(30% AMI)
$656 $749 $843 $937 $1,012 $1,087 $1,162 $1,237
Very Low
Income
(50% AMI)
$1,093 $1,249 $1,405 $1,561 $1,686 $1,811 $1,936 $2,061
Low
Income
(80% AMI)
$1,749 $1,998 $2,248 $2,498 $2,698 $2,898 $3,098 $3,297
13-county AFFordABility limits
Persons in Household
Persons in Household
Persons in Household
Source: American Community Survey 5-Year Estimate for 2021 Family Income Adjusted per HUD FY Income Limits
Source: American Community Survey 5-Year Estimate for 2021 Family Income Adjusted per HUD FY Income Limits
Source: HUD FY 2021 Income Limits
Housing Needs and DemandCity of Monticello
2626
27
Rental Market
RentAl MARket
Demand & Supply
27
Housing Needs and DemandCity of Monticello
28
monticello’s rental market consists of a variety of
housing types. Single-unit homes, rented attached
unit housing, and 5+ unit multi-family residential
structures are the most prevalent type of rental
units found in the City.
Importantly, there is also generally good distribution of rental units throughout the community. Interview and focus group
conversations did not identify any particular areas
that are lacking in access for renters, which is
confirmed through assessment data (mapped
above), which shows consistency with the local
understanding of the community.
As would be expected within the City, there are
higher concentrations of rental units throughout
the downtown, core City, and off of key
transportation corridors such as Interstate 94.
However, neighborhood and subdivision access
to rental housing options is adequate to provide
choices in tenure for households, providing
opportunity to own or rent in areas of their
preference throughout Monticello.
rentAl mArket
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ST
W B R OADWAYST
CSAH 43
90TH ST NE
7TH ST
CSAH 14
SCHOOL BLVD
85TH ST NE
E BROADWAY ST
CR-50
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A
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Print Date: 8/6/2020
Data Sources:Minnesota GIS DataWright County GIS & Assessor Data
Monticello, Wright County, MN
Residential
Proper ties
Renter Occupied
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundar y
Surrounding Municipality
Monticello
Rental Proper ty
Mixed Tenure Property
Right of Way
Monticello Housing Study
0 0.25 0.5 Miles
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
28
29
Rental Market
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CSAH 43
90TH ST NE
7THST
CSAH 14
SCHOOLBLVD
85TH ST NE
E BROADWAY ST
CR-50
P
A
R
K BLV
D
CHELSEARD
WRIVERST
CSAH39
200THST
HARDING AVE NE
BRIARWOODAVE
NE
CAMERONST
./10
./10
Printed By: smorrison, File: \\msa-ps.com\fs\Project\13\13731\13731002\GIS\13731002_ResProperties_Rentals_202000806.mxd
Print Date: 8/6/2020
Data Sources:Minnesota GIS DataWright County GIS & Assessor Data
Monticello, Wright County, MN
Residential
Properties
Renter Occupied
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundary
Surrounding Municipality
Monticello
Rental Property
Mixed Tenure Property
Right of Way
Monticello Housing Study
00.250.5Miles
AFFordABility limits in the rentAl
mArket
income oF residents is central to housing affordability. Though the housing market extends outside of
Monticello, and the City has a large commuter-share working in the Metro, incomes shown below illustrate
the median for current residents living in the community.
Using the City’s incomes to determine affordability limits as opposed to those used by the Minnesota
Housing Finance Agency and U.S. Department of Housing & Urban Development gives income ranges
and categories found below, which reflect the lower average income than in other geographies.
RentLimit 1 2 3 4 5 6
Monticello
$2,161
(100%
AMI)
Extremely
Low
Income
(30% AMI)
$454 $519 $583 $648 $700 $752
Very Low
Income
(50% AMI)
$756 $864 $972 $1,081 $1,167 $1,253
Low
Income
(80% AMI)
$1,210 $1,383 $1,556 $1,729 $1,867 $2,006
monticello rentAl “AFFordABility” limits
Median Family Income 1 2 3 4 5 6
Monticello
$86,444
(100%
AMI)
Extremely
Low
Income
(30% AMI)
$18,153 $20,747 $23,340 $25,933 $28,008 $30,083
Very Low
Income
(50% AMI)
$30,255 $34,578 $38,900 $43,222 $46,680 $50,138
Low
Income
(80% AMI)
$48,409 $55,324 $62,240 $69,155 $74,688 $80,220
monticello income cAtegories
AFFordABle rentAl limits are calculated based on the incomes above and illustrate the general
amount a household already living in the City could afford in the housing market without becoming
housing cost burdened. These vary based on percentages of the Area Median Income (AMI) as well as
family size. The median income household for the City (100% AMI) could afford about $2,161 monthly in
total housing costs (not solely contract rent), while maintaining “affordable” housing.
Persons in Household
Persons in Household
Source: American Community Survey 5-Year Estimate for 2021 Family Income Adjusted per HUD FY Income Limits
Source: American Community Survey 5-Year Estimate for 2021 Family Income Adjusted per HUD FY Income Limits
29
Housing Needs and DemandCity of Monticello
30
[Following the Great Recession],
household growth has finally
returned to a more normal pace.
Housing production, however,
has not. The shortfall in new
homes is keeping the pressure on
house prices and rents, eroding
affordability—particularly for
modest-income households
in high-cost markets. While
demographic trends should
support a vibrant housing market
over the coming decade, realizing
this potential depends heavily on
whether the market can provide
a broader and more affordable
range of housing options for
tomorrow’s households.
- Joint Center for Housing Studies of Harvard University; State of the Nation’s Housing 2019
30
31
Rental Market
tenure in the housing market refers to the structure
of occupancy - ownership or rental. Within the City, ownership is by far the most common tenure type - more households own their primary place
of residence than rent, though this has been
decreasing slightly since 2010 (74.7% to 73.2%
between 2010 and 2018).
This is consistent with general trends within the region
- similar homeownership shares in peer communities,
generally more affordable housing than other areas
of the larger region, and access to various types of
structures. Lower-income households nationwide are more likely to be renter households, and this is true in the City as well, especially for the lowest income households earning 30% AMI or less.
As households (and their associated incomes) are
mobile, housing in the City represents larger shares
of more lower-cost rental options that are affordable
to lower-wage workers. High-income (>100% AMI)
renters are choosing to live in the community,
though a large majority of households transition to
the ownership market once their income reaches
this point.
tenure in the housing mArket
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0% - 30% AMI 31% - 50% AMI 51% - 80% AMI 81% - 100% AMI > 100% AMI
Chart Title
Owner Renter
tenure By income
hou
s
e
h
o
l
d
s
Income Renters Owners Total
0% - 30% AMI 480 155 635
31% - 50% AMI 200 355 555
51% - 80% AMI 405 580 985
81% - 100% AMI 155 545 700
>100% AMI 130 1,815 1,945
Total 1,370 3,450 4,820
households, income & tenure
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0% - 30% AMI 31% - 50% AMI 51% - 80% AMI 81% - 100% AMI > 100% AMI
Chart Title
Owner Renter
Source: HUD Comprehensive Housing Affordability Strategy
Source: HUD Comprehensive Housing Affordability Strategy
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
31
Housing Needs and DemandCity of Monticello
32
regionAl Peer communities, while part of the
commuter shed and larger Monticello housing
market, display different trends in rates of
homeownership. Income is generally higher for
residents of these communities - and considering
higher income ranges it is expected that they have
higher rates of homeownership. Coupled with ease of transportation access and amenities found in Monticello, rental housing is more accessible and affordable as situated regionally.
Monticello has the 2nd highest rate of renter households amongst its peer communities, with only Buffalo having a higher share of rental housing.
This reflects not only income differences between
these communities, but how the built environment
has adjusted to market demand. With a higher
share of ownership options available, households
who want to purchase homes outside of the metro
without the direct access to the Interstate have
historically driven this market - and are more likely
to be households with higher incomes and more
purchasing power.
tenure in the housing mArket
regionAl tenure comPArisons
tenure - monticello
73.2%
26.8%
Owner Households Renter Households
81.7%
18.3%
Owner Households Renter Households
Wright CountyBuffalo
69.7%
30.3%
Owner Households Renter Households
78.6%
21.4%
Owner Households Renter Households
Becker
Big Lake
83.5%
16.5%
Owner Households Renter Households
86.5%
13.5%
h ld h ld
St. Michael
73.2%
26.8%
Owner Households Renter Households
69.7%
30.3%
Owner Households Renter Households
78.6%
21.4%
Owner Households Renter Households
83.5%
16.5%
Owner Households Renter Households
86.5%
13.5%
h ld h ld
69.7%
30.3%
Owner Households Renter Households
78.6%
21.4%
Owner Households Renter Households
Source: American Community Survey 5-Year Estimates 2018
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
Source: American Community Survey 5-Year Estimates 2018
32
33
Rental Market
Data not updated in 2023 Housing StudySource: American Community Survey 5-Year Estimates 2018
housing stress is measured by cost burden,
which reflects the amount of income a
household pays for total housing costs.
Generally municipalities with larger stock of
rental housing and very little vacancy would
show higher housing costs for consumers and
increasing rates of cost burden. This does not
hold true in Monticello when compared to peer
communities, which show similar rates of rental
burden overall (with the exception of Becker).
This also represents a share of older rental
housing stock that is naturally more affordable
to households through a combination of age,
amenities, and “wear- and tear” on the units
themselves. There is some evidence of higher-
income households “renting down” within the
market (spending less than 30% income toward
rent), which in this case lowers rates of cost
burden overall.
As is typical due to income disparities between
tenure types, cost burden is much more prevalent in Monticello for renter than owner households, indicative of generally higher owner income and tight lending standards.
rentAl housing stress
Municipality
% of Renter Households with Cost Burden
# of Cost Burdened Renter Households
Monticello 47.4%633
Buffalo 53.1%939
Becker 29.5%110
Big Lake 55.1%318
St. Michael 45.0%321
Wright County 44.5%3,858
rentAl housing stress
Chart Title
Cost Burden <=30%Cost Burden >30% to <=50%Cost Burden >50%
Chart Title
Cost Burden <=30%Cost Burden >30% to <=50%Cost Burden >50%
housing stress - tenure
Renter Households Owner Households
Chart Title
Cost Burden <=30%Cost Burden >30% to <=50%Cost Burden >50%
Chart Title
Cost Burden <=30%Cost Burden >30% to <=50%Cost Burden >50%
Chart Title
Cost Burden <=30%Cost Burden >30% to <=50%Cost Burden >50%
Chart Title
Cost Burden <=30%Cost Burden >30% to <=50%Cost Burden >50%
Source: HUD Comprehensive Housing Affordability Strategy
Source: American Community Survey 5-Year Estimates 2018Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
33
Housing Needs and DemandCity of Monticello
34
rentAl stress in Monticello exists almost entirely within low-income City households. While
there are renter households over 80% AMI that
experience cost burden, higher-income cost
burdened households often have the option to
spend more than 30% of income toward housing
while still maintaining the ability to cover fixed
costs - cost burden by choice. Due to the structure
of the rental market in the City, there are gaps in
unit availability at appropriate price points to serve
specific incomes in the market.
Overall, there is a general oversupply of low-cost
units that serve households between 31% and 80%
AMI (approx. $800 - $1,300 monthly rent). These
units represent natural appreciation of units within
the market - they do not have subsidies that allow
them to alleviate cost burden for the lowest-
income households, while also not filling demand
for the highest-income users in the market.
There are significant housing gaps at both the top and bottom of the rental housing market,
with an undersupply of market-rate units for
households earning over 80% AMI (rental housing
cost $1,500+) as well as affordable units with
rents below $800 monthly. Although there is a
high market gap, there is an upwards limit to
income that can realistically be spent on housing.
Many higher income households also value
affordability (spending less than 30%), so this does
not display true unit for unit demand for high cost
housing. It does create some additional market
tension, where some high income households
rent significantly below what they could afford,
using units otherwise affordable to lower-income
households.
rentAl stress By income
37
88
30 19
215
135
69
40
0
50
100
150
200
250
300
Less than $20,000 $20,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 > $75,000
Chart Title
Cost Burdened Severely Cost Burdened
cost Burden By income
Income Range Renter Households
Rental Units Available
Over-/Under-Supply
0% - 30% AMI 480 215 -265
31% - 50% AMI 200 650 450
51% - 80% AMI 405 460 55
> 81% AMI 285 45*-240
rentAl unitmismAtch
*most recent available data - does not include Monticello Crossings
Source: American Community Survey 5-Year Estimates 2018
Source: American Community Survey 5-Year Estimates 2018
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
34
35
Rental Market
Source: American Community Survey 5-Year Estimates 2018Data not updated in 2023 Housing Study
rAtes oF renter cost Burden may be low
in Monticello overall, but those renters who are cost burdened are much more likely to be severely cost burdened (spending more than 50% income toward rental costs). Of those
experiencing cost burden in the City, 73% are
severely cost burdened. This rate is significantly
higher than in regional peer communities, 21.7
points higher than the next closest community.
While rates of cost burden are low overall,
higher income households “renting down”,
as well as increased demand in the market
overall increases competition for units in the
moderate- and middle- market segments.
This also indicates a lack of appropriately-priced units for the lowest income households already living in the community, and indicates opportunity to better serve low-income households through income-restricted and subsidized units that ensure affordability levels not currently provided within the market.
rentAl housing stress
Municipality
# with CostBurden(30%-50%)
# with Severe Burden(>50%)
% Severely Cost Burdened
Monticello 174 459 72.5%
Buffalo 519 420 44.7%
Becker 72 38 34.5%
Big Lake 289 29 9.1%
St. Michael 165 159 48.6%
Wright County 1,889 1,959 50.8%
cost Burdened renter households
Source: American Community Survey 5-Year Estimates 2018
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mon�cello Buffalo Becker Big Lake St. Michael Wright County
Chart Title
Cost Burden (30%-50% Income Toward Rent)Severe Cost Burden (>50% Income Toward Rent)
levels oF cost Burden (2018)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mon�cello Buffalo Becker Big Lake St. Michael Wright County
Chart Title
Cost Burden (30%-50% Income Toward Rent)Severe Cost Burden (>50% Income Toward Rent)
Source: HUD Comprehensive Housing Affordability Strategy
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
35
Housing Needs and DemandCity of Monticello
36
which households are over- or underconsuming
housing (renting above or below an affordable
limit) is tracked annually by both the US Census
Bureau and the Department of Housing and
Urban Development (HUD). While we know based
on general over- and undersupply that higher-
income renter households “rent down”, spending
less than 30% of income on housing, we can also
match which income-range units they are actually
occupying.
In Monticello at the time of data collection, low-
income households (80% AMI or under) had been
renting 100% of higher-end market rate units. This
has likely changed, as US Census and HUD data
do not yet reflect unit increases in the market-rate
segment of the Monticello rental market from
newly developed units.
This reflects some of the reason for increased rates
of severe cost burden in the City overall, though
due to unit numbers does not account for a large
portion.
Moderate- to high-income households (making
over 80% AMI) rent approximately 14% of rental
housing units that would be affordable to
households earning 31% - 80% AMI. The largest
mismatches in unit consumption in the City are
from households earning 51% - 80% AMI renting
units affordable to 31% - 50% AMI households
(32% of those units), and 0% - 30% AMI households
renting units above their affordability level (64% of
all extremely low income households are in units
unaffordable to them).
While this means access to affordable housing
options are readily available for low- and
moderate-income households (>80% AMI), it also
means that extremely low-income households
(which are less competitive in the rental market)
must spend more to secure housing, and often
housing that is significantly above their affordability
limit.
rentAl unit consumPtion
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Chart Title
0% - 30% AMI 31% - 50% AMI 51% - 80% AMI 81% - 100% AMI > 100% AMI
rentAl unit consumPtion (By income)
uni
t
s
household income
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Chart Title
0% - 30% AMI 31% - 50% AMI 51% - 80% AMI 81% - 100% AMI > 100% AMI
Source: HUD Comprehensive Housing Affordability StrategyData not updated in 2023 Housing Study
36
37
Rental Market
rentAl unit consumPtion
while unit choice is important to the freedom
and desirability of the local housing market, more
options at appropriate price points can help guide
consumers into more appropriately priced units
that ease burden at all levels.
Comments received in the 2020 Community
Survey largely called out this need for housing
across multiple price points - even when not
directly asked. While a few respondents were
hesitant toward new development, themes largely arose that clearly identified both affordable and executive level housing options as needs within the community. This included a significant
response for increased housing support directed
toward households at risk of homelessness -
which per HUD guidance is considered severely
cost burdened, extremely low-income renter
households (approx. 225 of these households
currently live in the City).
The survey also identified specific building types
they would like to see within the market - and
in addition to amenity-rich market rate options
for renters who may choose to telecommute,
attached unit and townhome development were
commonly listed as options to help fill the mid-level
market, whether ownership or rental.
In looking to directly address rental costs for low-
income households, one method commonly used
is to aim to add the undersupply. In Monticello, this would be a goal to add 265 units of rental housing affordable to the lowest-income earners in the community (0% - 30% AMI households). This would allow options for these households to eliminate or severely reduce their housing costs, decrease rates of rental cost burden, and open up units they were occupying to other households in the community or moving to the community at price-points appropriate to their own income.
Rental Units 0% - 30%31% - 50%51% - 80%81% - 100%>100%
Affordable at 30% 175 40 0 0 0
Affordable 31% - 50%195 85 210 105 60
Affordable 51% - 80%95 60 180 50 70
Affordable at >80%15 15 15 0 0
rentAl unit household occuPAncy
Households by Income
Source: HUD Comprehensive Housing Affordability StrategyData not updated in 2023 Housing Study
37
Housing Needs and DemandCity of Monticello
38
rentAl unit tyPes
unit tyPes are important to provide choice in
the housing market that match characteristics
and meet preferences of residents and potential
residents of the City. Of note, there are very few rental units per the U.S. Census that are in 2-4 unit structures.
36% of the rental units in the City are either single-
unit detached or single-unit attached homes.
Although a significant portion of the rental housing
stock, 58% of all rental units are in 5+ unit structures.
Commonly housing different household types,
this balance across structure (and cost) segments
indicates a healthy mix of preference and type
options for varying household needs.
!#"94
!#"94
S H E R B U R N E
C O U N T YWRIGHT C O U N T Y
××39
××43
××39
××18
××212
××106
××11
××50
××14
××2222
××17
××189
××287
EBROADWAY
ST
W B R OADWAYST
CSAH 43
90TH ST NE
7TH ST
CSAH 14
SCHOOL BLVD
85TH ST NE
E BROADWAY ST
CR-50
PA
R
K B
LV
D
CHELSEA RD
W RIVER ST
CSAH 39
200T H S T
HARDING AVE NE
BRIARWOODAVE
NE
CAMERON ST
./10
./10
Printed By: smorrison, File: \\msa-ps.com\fs\Project\13\13731\13731002\GIS\13731002_ResProperties_byNoUnits_RenterOcc_202000820.mxd
Print Date: 8/20/2020
Data Sources:Minnesota GIS DataWright County GIS & Assessor Data
Monticello, Wright County, MN
Renter Occupied
Residential
Properties
By Number of Units
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundary
Surrounding Municipality
Monticello
Number of Units
Single Unit Detached
Single Unit Attached
2
3-4
5-19
20 or More
Manufactured Home Park
Right of Way
Monticello Housing Study
0 0.25 0.5 Miles
Unit Type Number of Units
% of Total Rental Units
Rental as % of Unit Type
1-unit detached 399 24.8%12.0%
1-unit attached 181 11.3%27.9%
2-4 unit 35 2.2%34.3%
5-19 unit 516 32.1%96.8%
20+ unit 421 26.2%98.1%
Mobile Home 55 3.4%15.4%
rentAl units - tyPe
Source: American Community Survey 5-Year Estimates 2021
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
38
39
Rental Market
Source: American Community Survey 5-Year Estimates 2021
AFFordABility trends
generAl meAsures And trends in
affordability are a contrast of current
incomes compared to current costs. One
measure is whether or not the median
renter household can afford the median
rental unit, which is a measure of choice. If
yes, 50% or more of all rental units would be
available to that household. If no, choice is
restricted and market supply and demand
are unbalanced. Though the median rent
was affordable to the median renter in
2021, the newest units in the City are not
accounted for in this dataset. Recent
estimates of family income and rent (using
HUD methodology) show both have risen
steadily in the aftermath of the COVID-19
pandemic.
Ranges of unit rental costs in the City show
that most units rent over $1,000 per month
(including utilities), and though there are
units priced below $500 monthly, there
is not enough supply for residents at this
income level already living in the City.
About $500 in rental costs per month is
the affordability limit for a two-person
household earning $20,000 annually, and
equates to a City household at 30% AMI.
rentAl cost & income
$0
$200
$400
$600
$800
$1,000
$1,200
2010 2011 2012 2013 2014 2015 2016 2017 2018
Median Rent Rent Affordable to Median Renter Household
0
50
100
150
200
250
300
350
400
450
unit rents
uni
t
s
gross rent
Source: American Community Survey 5-Year Estimates 2021
Source: American Community Survey 5-Year Estimates 2021
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2013 2014 2015 2016 2017 2018 2019 2020 2021
Median Rent Rent Affordable to Median Renter Household
39
Housing Needs and DemandCity of Monticello
40
rentAl housing cost
renter households in the City currently pay
$1,100-$1,300 per month for a 1-bedroom
unit (average), and between $1,200-$1,600
per month for 2-bedroom units (average). This marks a 20% increase in monthly rent for 2-bedroom units since 2020. Within the market,
however, there is significant variation in unit costs
expected with variance in age of construction,
location, and amenities.
Among peer communities, Monticello generally
sees lower rent for units of all sizes across
the spectrum. Due to the way ACS data is
calculated, recent rental unit construction is
not included. As of 2021 ACS 5-year averages,
Monticello tends to have highest 3-bedroom
rental units amongst its regional peers. All other
unit prices in Monticello remain generally more
affordable or on par with prices elsewhere in
the region, although matching affordability for
current residents remains a top concern.
Income Census (2021)(1) RentAggregator (2) Rent Aggregator
Efficiency $527 -$1,337
1-Bedroom $739 $1,115 $1,264
2-Bedroom $989 $1,367 $1,554
3-Bedroom $1,634 1,815 $1,762
4-Bedroom $1,665 2,456 $2,333
All Bedrooms $1,041 --
monthly rentAl estimAtes
Rental Aggregators are based on adjusted active listings, average for 2023
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Efficiency 1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom 5+ Bedroom
Mon�cello Buffalo Becker Big Lake St. Michael Wright County
rentAl unit cost
Source: American Community Survey 5-Year Estimates 2021
Source: American Community Survey 5-Year Estimates 2021; (1) Zumper; (2) Apartments.com
40
41
Rental Market
vAcAncy rAte
vAcAncies in the rental market are important for
continued access and affordability. Healthy rental
vacancy rates are considered to be between 5%
and 7% of all units. This falls within the assumed
vacancy for new development (5%), allows
turnover and growth in population, keeps market
rental cost increases to appropriate amounts, and
provides a general balance between landlord and
tenant.
The U.S. Census Bureau provides relatively
accurate numbers for rental vacancy in the City,
especially when utilizing moving averages over
multiple survey years. These vacancy numbers
were verified to be relatively accurate through
interviews with property managers, developers,
and landlords, though there was variation reported
based on unit age and condition. Generally,
more affordable older units were at vacancies
approaching 0%, while newer unit construction
had greater vacancy - though still below typical
development assumption of 5%.
In general, low vacancy increases competition
for units, and as a byproduct can inflate year
over year rental cost increases. These large year
over year increases were confirmed by study
participants, with some reporting contract rent
increases of over 10% on an annual basis without
impacting renewals or lease-ups.
rentAl unit vAcAncies
increAsing suPPly and increasing vacancy of rental units in the community would be healthy for the housing market. Doing so would allow
potential residents, employees, and commuters
that prefer smaller markets the opportunity to
move into the community. It would also allow
healthy turnover of units within the market
providing more choices of housing for current
residents, and allow residents to self-select into
housing of both an appropriate size and type.
The significant decrease in rental vacancy
from 2013 to 2021 has continued, and though
development has occurred, property owners
and managers interviewed for the study did not
report significant vacancies at their properties -
with all below the recognized healthy range of
5%-7%.
It should be noted that the available vacancy
data lags actual conditions, and while
anecdotal reports indicate low vacancy, the
continued production of new rental units in 2022
and 2023 may finally be pushing vacancy up
again. If and when vacancy rises, it will slow the
rise of rental rates but should not be expected
to result in lower rates.
wright countyvAcAncy rAte
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Vacancy Rate
Vacancy Rate 2per.Avg.VacancyRate
“Healthy” Vacancy Range
Source: American Community Survey 5-Year Estimates 2021
Source: American Community Survey 5-Year Estimates 2021
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2013 2014 2015 2016 2017 2018 2019 2020 2021
Vacancy Rate 2 per. Mov. Avg. (Vacancy Rate)
“Healthy” Vacancy Rate
0
10
20
30
40
50
60
70
80
90
100
2013 2014 2015 2016 2017 2018 2019 2020 2021
Vacant for Rent (Units)
41
Housing Needs and DemandCity of Monticello
42
HOUSEHOLD SIZE is important to the housing market,
as larger households require units with more
bedrooms to not be overcrowded (more then 1
person per room). In 2021, over half (52%) of rental
housing in Monticello was occupied by 1-person
households; all other household sizes (2-person to
7 or more) combined make up remaining 48% of
rental-occupied housing units. Of note, between
2018 and 2021, the number of 3-person renter
households increased from 45 to 133—an increase of
195%. Similarly, the estimated number of 3-bedroom
rental units increased from 223 to 464 according
to ACS 5-year estimates. These were the largest
increases among household sizes and unit bedroom
sizes.
While the majority of rental units are still 1-and
2-bedrooms (58%),the growth in 3-person rental
households and 3-bedrooms rental units over the
last few years shows there is strong demand for
larger rentals that provide more space. In the rental
market, especially for low- and moderate-income
family households, maintaining access to 3 or more
bedroom units will be important in the coming years
to allow residents to grow their families in place.
rentAl housing size
39%
33%
17%
11%
30%
32%2%
37%
42%
17%
22%
19%
89%
0%11%
0%
renter household size
renter household size - monticello
43%
29%
3%
25%
MonƟcello
1-Person 2-Person 3-Person 4-or-more Person
43%
29%
3%
25%
MonƟcello
1-Person 2-Person 3-Person 4-or-more Person
Wright CountyBuffaloBecker
Big Lake St. Michael
Source: American Community Survey 5-Year Estimates 2021
Source: American Community Survey 5-Year Estimates 2021
52%
15%8%
25%
1-Person2-Person3-Person4-or-more Person
52%
15%
8%
25%
1-Person 2-Person 3-Person 4-or-more Person
42%
27%
12%
19%
42
43
Rental Market
rentAl housing size
housing unit size works to not only match the
requirements of households based on family size, but
also preferences for additional space - for example,
the expanding need for housing that includes
room for office spaces and other work from home
accommodations.
One key amenity that is not often mentioned in housing choice is access to fiber internet connection. As many rural areas struggle with
access, this amenity could work to further attract
former metro residents who prefer smaller town
accommodations, while allowing fluidity in commute
as well as telecommute access. If this trend does
persist long-term, even a small change in preference
to work from home or more remote locations could
have a significant impact on the rental housing
market, as well as preferences for size of housing.
numBer oF Bedrooms - rentAl
Source: American Community Survey 5-Year Estimates 2021
rentAl units By Bedroom size
5%
22%
36%
29%
5%3%
0
100
200
300
400
500
600
Efficiency 1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom 5+ Bedroom
uni
t
s
Source: American Community Survey 5-Year Estimates 2021
5%
22%
36%
29%
5%3%
Efficiency 1-Bedroom 2-Bedroom
3-Bedroom 4-Bedroom 5+ Bedroom
43
Housing Needs and DemandCity of Monticello
44
rentAl units & Buildings
Apartment Buildings Units Address Constructed/Anticipated
Monticello Crossings 202 2205 Meadow Oak Ave 2015
Savanna Vista 200 The Pointes at Cedar 2025
Deephaven Apartments 165 1255 Edmonson Ave NE 2022
Headwaters West Senior Apartments (55+)102 Golf Course Rd & 7th St 2024
Twin Pines 96 School Blvd TBD
*Willows Landing 92 9872 Hart Blvd 2020
*St Benedicts—(Independent Living)91 1301 E 7th St 1999
Block 52 First Addition 87 101 W Broadway St 2024
The Bluffs 72 700 , 707, 714 E 7th St 1987
Headwaters Twinhome Senior Living (55+)60 Tee Box Trl 2024
Monticello Village Apts 60 725 - 733 MN St 2000
*St Benedicts—(Independent Living)59 1305 E 7th St 1999
*Mississippi Shores 49 1213 Hart Blvd 1997
Ridgemont Apts—(Low Income)48 716 Maple St 1988
Rivertown Residential Suites 47 212 Locust St 2020
Ridgeway Apts—(Low Income)44 330 - 333 W 6th St 1976
Westcello Apts 44 915 - 921 Golf Course Rd 1987
*Cedar Crest Apt 38 406 Cedar St 1977
Hillside Properties I—(Low Income)35 207 E 7th St 1981
Silvercrest Apts 35 307 E 7th St 2002
*River Park View Apts 31 218 W River St 1986
*Broadway Square Apts 28 243 W Broadway 1989
Terrace View Apts—(Low Income)26 401 E 7th St 1986
44
45
Rental Market
rentAl units & Buildings cont.
Apartment Buildings Units Address Constructed/Anticipated
Jefferson Heights Apts 24 615 7th St E 1975
River Road Apts 24 139 Riverview Dr 1986
Marywood Apts 24 407 E 7th St 1985
Hammer Apts 15 154 E Broadway 1943
Seventh Street Townhomes 15 313 W 7th St 1993
Chock Apts 12 801, 803, 807 W 3rd St 1970-1985
Hillside Properties II—(Low Income)12 301, 303 E 7th St 1981
Monticello Manor 12 306 W 6th St 1972
Pointe Apts, The 12 607 E 7th St 1975
Terrace Six Apts 12 318 W 6th St 1972
Source: City of Monticello
* Indicates senior living developments
45
Housing Needs and DemandCity of Monticello
46
monticello’s rental market consists of a variety of housing
types - with varying ages of construction. Many of the oldest
rental units in the City are single-unit structures throughout the
downtown, consistent with general development patterns.
There are also significant larger-unit rental structures built near
downtown that were built in the 1970s and 80s. Monticello
Crossings is the largest unit structure that has been built since
the recession in 2008.
Thirty-nine percent of all rental units in the housing market
were built prior to 1989, and are often the most affordable
rentals in a community. The 1990s saw a large increase in
construction that became rental housing, and the early 2000s
saw decreased production before the recession, though
rebounding significantly post-2014. Since 2020, there has been
304 units built with 545 approved units on their way.
multi-unit rentAl Age
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Data Sources:Minnesota GIS Data
Monticello, Wright County, MN
Renter Occupied
ResidentialProperties
by Year Built
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundary
Surrounding Municipality
Monticello
Year Built
1850 - 1895
1896 - 1930
1931 - 1969
1970 - 1991
1992 - 2007
2008 - 2018
No Year Built Data
Non Residential Parcels
Right of Way
Monticello Housing Study
0 0.25 0.5 Miles
Unit Type Number of Units
1969 or Earlier 115
1970 to 1989 767
1990 to 1999 401
2000 to 2009 380
2010 or Later 605
rentAl units - yeAr Built
Source: American Community Survey 5-Year Estimates 2021
supplemented by City of Monticello data records.
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
46
47
Rental Market
rentAl units - yeAr Built
there is A need for new rental construction
in the City that serves low- and high-income
earners alike. High-income earning households
can afford rents associated with higher cost of
new-construction, and developers can market
increased costs through increased amenities.
However, lower-income households largely cannot
afford new construction.
Construction cost and the requisite rents to cover
debt service, reserves, and operating expenses
even under a conservative example necessitate
rents that would be unaffordable for low-income
households. Simply, construction costs are a direct
barrier to ensuring Monticello’s lowest-income
households have access to housing they can
afford.
To ensure expanded opportunities and units that meet the needs of all residents of the City, subsidies are needed to offset construction costs to make more units affordable, in combination
with rehabilitation programs to ensure continued
unit adequacy at affordable cost (pg. 27),
especially for existing aging units.
exAmPle - construction cost
1-Bedroom rentAl (new construction)
Example 1-Bedroom Unit Construction & Land Cost = $200,000
Equity to Cost Ratio 20%Loan to Cost Ratio 80%
Required Equity $40,000 Mortgage Loan $160,000
Annual Pre-tax Distribution Rate 10%Mortgage Interest Rate 5%
Cash Payments for Equity $4,000 Debt Service $8,000
Net Operating Income $12,000
Operating Expenses $2,791
Real Estate Taxes $3,349
Replacement Reserve $502
Effective Gross Revenue $18,642
Vacancy (5% required assumption) $932
Gross Potential Income $19,574
Breakeven Annual Rent $19,574
Breakeven Monthly Rent $1,631
Source: Construction and Land Cost Estimates for the Twin Cities Metro region
47
Housing Needs and DemandCity of Monticello
48
exAmPle - AFFordABility
Monthly Housing Cost Limit 1 2 3 4 5 6 7 8
Monticello
$2,161
(100%
AMI)
Extremely
Low
Income
(30% AMI)
$454 $519 $583 $648 $700 $752 $804 $856
Very Low
Income
(50% AMI)
$756 $864 $972 $1,081 $1,167 $1,253 $1,340 $1,426
Low
Income
(80% AMI)
$1,210 $1,383 $1,556 $1,729 $1,867 $2,006 $2,144 $2,282
Persons in household
Households marked by red in the
Housing Affordability Limit table
above would not be able to afford
the 1-bedroom new construction
rental unit in the example.
Source: American Community Survey 5-Year Estimate for 2021 Family Income Adjusted per HUD FY Income Limits
79% of the Above household cAtegoRies
ARe below the AffoRdAbility liMit
48
49
Rental Market
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49
Housing Needs and DemandCity of Monticello
50
owneRship MARket
Demand & Supply
50
51
Ownership Market
the mAjority oF residentiAl PArcels in the
City of Monticello are owner-occupied units.
This holds true across all areas of the City, not
only throughout various neighborhood and
subdivisions, though downtown parcels are more
evenly divided. Owner housing is a large and
key component of the local housing market,
and ownership opportunity is one of the key
considerations that has been driving growth in the
City over the past decade.
While the majority of owner-occupied units within the City are single-unit detached housing, there is also good representation of single-unit attached housing units, as well as a few condo units in small
residential (3 to 9 unit) structures. Notably, the
two manufactured home parks account for over
200 total units of owner-occupied housing, which
serves a key market in the City for low-cost housing
stability at a reduced cost.
ownershiP mArket
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CSAH 43
90TH ST NE
7TH ST
CSAH 14
SCHOOL BLVD
85TH ST NE
E BROADWAY ST
CR-50
PA
R
K B
LV
D
CHELSEA RD
W RIVER ST
CSAH 39
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HARDING AVE NE
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Data Sources:Minnesota GIS DataWright County GIS & Assessor Data
Monticello, Wright County, MN
Owner Occupied
Residential
Properties
By Number of Units
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundary
Surrounding Municipality
Monticello
Number of Units
Single Unit Detached
Single Unit Attached
Manufactured Home Park
Right of Way
Monticello Housing Study
0 0.25 0.5 Miles
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
Housing Needs and DemandCity of Monticello
52
AFFordABility limits in the ownershiP
mArket
income oF residents is central to housing affordability. For ownership opportunities, this largely refers
to the “purchasing power” of a given household based on known incomes. Though the housing market
extends outside of Monticello, and the City has a large commuter-share working in the Metro, incomes
shown below illustrate the median for current residents of the community.
Using the City’s incomes to determine affordability limits as opposed to those used by the Minnesota
Housing Finance Agency and U.S. Department of Housing & Urban Development gives income ranges
and categories found below, which reflect the lower average income than in other geographies.
PurchaseLimit 1 2 3 4 5 6
Monticello
$290,452
(100%
AMI)
Extremely
Low
Income
(30% AMI)
$60,995 $69,708 $78,422 $87,136 $94,106 $101,077
Very Low
Income
(50% AMI)
$101,658 $116,181 $130,703 $145,226 $156,844 $168,462
Low
Income
(80% AMI)
$162,653 $185,889 $209,125 $232,361 $250,950 $269,539
Median Family Income 1 2 3 4 5 6
Monticello
$86,444
(100%
AMI)
Extremely
Low
Income
(30% AMI)
$18,153 $20,747 $23,340 $25,933 $28,008 $30,083
Very Low
Income
(50% AMI)
$30,255 $34,578 $38,900 $43,222 $46,680 $50,138
Low
Income
(80% AMI)
$48,409 $55,324 $62,240 $69,155 $74,688 $80,220
PurchAse limits based on the incomes above illustrate the general amount a household could afford in
the housing market without becoming housing cost burdened. The median income household in the City
could afford a $290,452 home purchase from annual income of $86,444.
monticello ownershiP “AFFordABility” limits
monticello income cAtegories
Persons in Household
Persons in Household
Source: American Community Survey 5-Year Estimate for 2021 Family Income Adjusted per HUD FY Income Limits
Source: American Community Survey 5-Year Estimate for 2021 Family Income Adjusted per HUD FY Income Limits
53
Ownership Market
tenure imPActs ownershiP mArkets as well as
rental markets. Referring to whether a household
owns or rents their property, tenure’s impacts
means that larger shares of owner households in a
community mean more owner housing stock - and
more choices for households who prefer ownership
as a tenure over renting.
The current percent of ownership households in Monticello is slightly less than in most regional peer communities. While this makes it slightly out of line
for the region, it does have easy access to Interstate
94, generally lower-cost housing, and older rental
housing stock that make it more affordable
for renters, decreasing owner households as a
percentage of the community overall.
tenure in the housing mArket
regionAl tenure comPArisons
tenure - monticello
73.2%
26.8%
Owner Households Renter Households
81.7%
18.3%
Owner Households Renter Households
Wright CountyBuffalo
69.7%
30.3%
Owner Households Renter Households
78.6%
21.4%
Owner Households Renter Households
Becker
Big Lake
83.5%
16.5%
Owner Households Renter Households
86.5%
13.5%
h ld h ld
St. Michael
73.2%
26.8%
Owner Households Renter Households69.7%
30.3%
Owner Households Renter Households
78.6%
21.4%
Owner Households Renter Households
83.5%
16.5%
Owner Households Renter Households
86.5%
13.5%
h ld h ld
69.7%
30.3%
Owner Households Renter Households
78.6%
21.4%
Owner Households Renter Households
Source: American Community Survey 5-Year Estimates 2018
Source: American Community Survey 5-Year Estimates 2018
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
Housing Needs and DemandCity of Monticello
54
tenure By income
the mAjority of owner-occupied homes in the City are occupied by households that are above the median income for the 15-county metro. This is not an uncommon occurrence, as
increased income opens up increased ownership
opportunities and eases costs associated with
homeownership (down payment, taxes, etc.).
While the largest share of owner households in the
City earn more than the metro median income,
there are still large portions of lower-income
households who do own their housing within the
City. These households may be attracted to the
general lower cost of housing compared to other
areas of the metro. They also often represent
aging homeowners who have entered retirement
and seen significant loss in income, which brings
new challenges. Although these owners may
own their home free and clear, they may struggle
with property tax payments, upkeep, and other
factors of homeownership that require continual
maintenance funds or physical requirements that
aging populations sometimes struggle to meet.
Income Renters Owners Total
0% - 30% AMI 480 155 635
31% - 50% AMI 200 355 555
51% - 80% AMI 405 580 985
81% - 100% AMI 155 545 700
>100% AMI 130 1,815 1,945
Total 1,370 3,450 4,820
households, income & tenure
Source: HUD Comprehensive Housing Affordability Strategy
0
500
1,000
1,500
2,000
2,500
0% - 30% AMI 31% - 50% AMI 51% - 80% AMI 81% - 100% AMI > 100% AMI
Owner Household Renter Household
tenure By income
Source: HUD Comprehensive Housing Affordability Strategy
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
55
Ownership Market
Source: HUD Comprehensive Housing Affordability Strategy
Data not updated in 2023 Housing Study
owner housing stress
housing stress - tenureChart Title
Cost Burden <=30%Cost Burden >30% to <=50%Cost Burden >50%
Chart Title
Cost Burden <=30%Cost Burden >30% to <=50%Cost Burden >50%
Renter Households Owner Households
Chart Title
Cost Burden <=30%Cost Burden >30% to <=50%Cost Burden >50%
Chart Title
Cost Burden <=30%Cost Burden >30% to <=50%Cost Burden >50%
Chart Title
Cost Burden <=30%Cost Burden >30% to <=50%Cost Burden >50%
Chart Title
Cost Burden <=30%Cost Burden >30% to <=50%Cost Burden >50%
Source: HUD Comprehensive Housing Affordability Strategy
housing stress is measured by cost burden,
which reflects the amount of income a
household pays for total housing costs. While the rental housing market in Monticello is marked by relatively high levels of cost burden (> 30% income toward rental costs), the ownership housing market has significantly reduced levels of burden in comparison.
Further - for those households in the ownership
market who do experience cost burden, they
are much less likely to experience severe cost
burden (> 50% income toward housing costs).
While housing is a necessity, so all households
must participate in the market in some aspect,
owner households have the financial resources
available to choose to purchase their housing.
An effect of that choice is that in order to
qualify, potential owner households must meet
underwriting standards - an aspect of the market
that drastically reduces the cost risk associated
with owning, as borrowers are more likely to
have higher incomes and increased access to
credit.
Municipality
% of Owner Households with Cost Burden
# of Cost Burdened Owner Households
Monticello 16.5%603
Buffalo 15.3%625
Becker 15.6%214
Big Lake 24.0%699
St. Michael 13.4%610
Wright County 18.8%7,263
ownershiP housing stress
Source: American Community Survey 5-Year Estimates 2018Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
Housing Needs and DemandCity of Monticello
56
owner housing stress in Monticello exists
almost entirely within low-income households.
Important to consider is that for households
above this amount - 80% AMI or greater, cost
burden is less impactful than for low-income
households. Even accounting for increased
housing costs, costs associated with fixed-cost
goods (childcare, healthcare, food, etc.) allow
more flexibility within a monthly budget to allow
some levels of cost burden while maintaining
financial stability. For lower-income households,
there is less room for increased costs or
unexpected expenditure.
In ownership unit mismatch, homes available in the market are generally oversupplied in the lower cost market when considering incomes for the 11-county metro. This is consistent with
known lower housing costs in the area - but is
also reflective of slightly lower incomes in the
City than the County and metro as a whole.
owner stress By income
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Chart Title
Cost Burden No Cost burden
cost Burden (income)
Income Range Owner Households
Ownership Units Available
Over-/Under-Supply
0% - 50% AMI 510 1,810 1,300
51% - 80% AMI 580 1,310 730
81% - 100% AMI 545 290 -255
> 100% AMI 1,815 165 -1,650
ownershiP unitmismAtch
Unit numbers are reflective of vacancy within the market
Source: HUD Comprehensive Housing Affordability Strategy
Source: American Community Survey 5-Year Estimates 2018
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
57
Ownership Market
Source: HUD Comprehensive Housing Affordability StrategyData not updated in 2023 Housing Study
owner housing stress
77%71%76%
65%58%64%
23%29%24%
35%42%36%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mon�cello Buffalo Becker Big Lake St. Michael Wright County
Cost Burden (30% - 50% Income Toward Housing Cost)Severe Cost Burden (>50% Income Toward Housing Cost)
levels oF owner cost Burden
Source: American Community Survey 5-Year Estimates 2018
Among those 480 Monticello owner
households that are cost burdened, less than
one-quarter are severely cost burdened
(spending 50% or more of income on
housing). This is again reflective of relatively
more affordable housing costs in the City
compared to peer communities, and has
been decreasing year-to-year.
Combined, these factors display relative
historic stability within the ownership market.
For the majority of those that own their homes,
current housing costs are relatively affordable.
With that in mind, housing prices are
appreciating to a point where more typical
homes within the community are becoming
more unaffordable to the typical household
- due to a combination of slight reduction
in income, increased housing demand, and
increasing housing prices in the ownership
market.
Municipality
# with CostBurden(30%-50%)
# with Severe Burden(>50%)
% Severely Cost Burdened
Monticello 370 110 23%
Buffalo 455 190 29%
Becker 170 55 24%
Big Lake 465 255 35%
St. Michael 415 295 42%
Wright County 4,065 2,330 36%
cost Burdened owner households
Most recent dataset vintage 2016. Less detailed data from 2018 on pg. 52
indicates higher rates of owner cost burden overall.Source: HUD Comprehensive Housing Affordability StrategyData not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
Housing Needs and DemandCity of Monticello
58
The U.S. Department of Housing & Urban
Development tracks household incomes
compared to the cost of the housing unit they live
in. Per HUD data, within the City the largest share of ownership homes in the market (1,810 units) should be affordable to households earning about 50% of the 13-county metro’s AMI ($52,000 for a family of 4). Of these housing units, only about 20% are owned by households that fall into that income category. The remainder are owned by higher-
income households, with nearly 45% being owned
by households earning above the 100% of the
11-county area median income.
These homes are extremely affordable to higher-income households, and provide desirable affordable ownership options for high income earners. However, it does provide increased competition that precludes lower-income earners from entering the owner housing market.
Overall, the market at all levels is dominated
by households earning over 80% AMI (68% of all
owners). These households are consuming units
in the housing market that are very affordable to
them - their relative incomes significantly lower
housing cost burden, and income shares spent
on housing costs are extremely low. While this is
beneficial to these households, it does strain the
market and ultimately increase sales prices in all
housing ranges, from entry-level homes upward.
Consistent with insights from the 2020 Community Survey, residents feel that the largest negative aspect to the housing market in Monticello is ownership housing affordability (45% of all respondents), with 52% of those with an opinion indicating that affordable housing is becoming increasing harder to find year-to-year. As the market is restricted, community concerns of affordability and availability are connected as higher-income owner households can outbid lower-income households for homes that would otherwise be affordable at a lower rate.
owner unit consumPtion
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
0% - 30% AMI 31% - 50% AMI 51% - 80% AMI 81% - 100% AMI > 100% AMI
ownershiP unit consumPtion (By income)
uni
t
s
household income
Source: HUD Comprehensive Housing Affordability StrategyData not updated in 2023 Housing Study
59
Ownership Market
owner unit consumPtion
disPArity in ownership opportunity is apparent
when looking at the distribution of homes, by
value, that have a lien on the property. The
table above shows the household incomes of
occupants of ownership housing both with and
without a mortgage. Difference in mortgage status
can generally be thought of as “purchased in the
past 15-30 years” for homes with a mortgage and
“purchased more than 15-30 years ago” for homes
without a mortgage.
For units with a mortgage (representing more
recent home purchases), 57% were purchased
by households earning more than the 11-county
median family income ($103,400 for a family of 4).
However, homeowners > 100% AMI own only 38%
of homes without a mortgage. While some of this
discrepancy is due to reduced income for retirees
who have paid off their homes, it is also reflective
of appreciating values within the market over a
typical 30-year amortization period - those homes
that have resold have sold for more.
Tightening lending standards and unit availability
do have an impact on lower-income households
within the market, but many are finding homes
that they can purchase, especially households at
middle-incomes that are greater than 50% of the
13-county median income.
Ownership Units 0% - 30%31% - 50%51% - 80%81% - 100%>100%
Affordable at 50% 50 60 215 315 595
Affordable at 51% - 80%25 25 210 125 710
Affordable at 81% - 100%0 0 60 4 135
Affordable at > 100%0 0 0 0 25
Affordable at 50% 80 165 35 60 230
Affordable at 51% - 80%0 85 35 40 60
Affordable at 81% - 100%0 25 25 0 40
Affordable at > 100%0 0 0 0 15
ownershiP unit household occuPAncy
Owner Household Income
Un
i
t
s
W
i
t
h
a
M
o
r
t
g
a
g
e
Un
i
t
s
W
i
t
h
o
u
t
a
M
o
r
t
g
a
g
e
Source: HUD Comprehensive Housing Affordability Strategy
This table represents 2,554 ownership units with a mortgage, and 895 with no mortgage or other lien
on the property.
Data not updated in 2023 Housing Study
Housing Needs and DemandCity of Monticello
60
sPAtiAl AFFordABility
APProximAte vAlue of homes is mapped above,
using assessment records. While this is not a
perfect approximation of sales/cost value within
the market, it does offer a baseline for estimation
and comparison. This spatial availability of homes
by market cost shows where opportunity for
affordability exists in the City’s housing market for
residents at different income levels.
This map (also in Appendix A), illustrates the
general affordability of smaller and attached-unit
housing options within the community. In general, the more affordable ownership options are within the downtown core of the City, as well as in scattered attached-unit housing development throughout different neighborhoods. Maintaining
this range of options is key in ensuring new
development remains affordable for households
at various income levels.
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S H E R B U R N E
C O U N T YWRIGHT C O U N T Y
××39
××75
××75
××43
××44 ××101
××39
××116
××18
××212
××106
××14
××105
××27
××11
××50
××2222
××17
××189
××287
EBROADWAY
ST
W B R OADWAYST
CSAH 43
90TH ST NE
7TH ST
CSAH 14
SCHOOL BLVD
85TH ST NE
E BROADWAY ST
CR-50
PA
R
K B
LV
D
CHELSEA RD
W RIVER ST
CSAH 39
200T H S T
HARDING AVE NE
BRIARWOODAVE
NE
CAMERON ST
./10
./10
Printed By: smorrison, File: \\msa-ps.com\fs\Project\13\13731\13731002\GIS\13731002_AssessedValue_ResProperties_OwnerOcc_202000820.mxd
Print Date: 8/20/2020
Data Sources:Minnesota GIS DataWright County GIS & Assessor Data
Monticello, Wright County, MN
Owner Occupied
Residential
Properties
Total Property Value
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundary
Monticello
Right of Way
Total Property Value
Less than $100,000
$100,000 - $200,000
$200,001 - $250,000
$250,001 - $300,000
$300,001 - $350,000
$350,000 - $450,000
Greater than $450,000
No Assessed Value
Non Residential Parcels
Monticello Housing Study
0 0.25 0.5 Miles
Unit Affordability Low Cost High Cost
Affordable up to 50% AMI -$173,800
Affordable at 51% - 80% AMI 173,801 $277,950
Affordable at 81% - 100% AMI $277,951 $347,500
Affordable above 100% AMI $347,501 -
ownershiP units, 13-county
AMI calculation shown is applicable to the entire 13-County Metro based on a
household size of 4 persons.
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
61
Ownership Market
AFFordABility trends
generAl meAsures And trends in
homeowner affordability have to do with
market conditions in real estate markets
and prospective buyer incomes at the
time of purchase. Looking at housing in the
City of Monticello, home values historically
peaked pre-Great Recession before seeing
a decrease in value through the recession.
Both townhome and single family units
have regained lost value associated with
the recession, surpassing previous market
highs by 2015 and continuing to rise since.
Within the City, many households have remained in their home for long periods of time, with many having been in their unit since 2009 or earlier. These represent long-tenured homeowners who are residing in their homes longer than the 7-year national average. There is also an increasing number of homeowners who have moved into their home after 2015 with the development of new units.
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Single-Family Townhome 6 per. Mov. Avg. (Single-Family)6 per. Mov. Avg. (Townhome)
single-unit & townhome mArket vAlue
yeAr owner moved into unit
Source: American Community Survey 5-Year Estimates 2021
Source: Multiple Listing Service
0 500 1000 1500 2000 2500 3000 3500 4000 4500
Housing Needs and DemandCity of Monticello
62
AFFordABility trends
while unit Price is an important factor in housing
affordability, unit price must be compared with
incomes and affordability levels to reflect a true
measure of housing access. The City of Monticello
experienced rising incomes for residents coming
out of the recession - and for a time these incomes
rose at a rate ahead of the real estate market.
When single-family and townhome units reached
the bottom of their market dip in 2012, both were
affordable to many local households based on
income.
In 2012, the median single-unit home was within
the affordability limit of not only the median
household, but also within the limits of households
at 80% and 50% of the City median income.
Households at 50% AMI had seen an increase in
incomes so that the median condo/townhouse
unit was an attainable method of homeownership
through 2015.
Since 2014 however, house value growth has drastically outpaced income growth for the same period, most significantly since 2020, to the point that the median single-unit home is no longer affordable to even the median household, much less the an 80% AMI household in the City. This is
largely reflective of regional forces and increased
demand that appreciate home values, while
local income conditions have caused the median
Monticello household to see a slight reduction in
real income over recent years.
Of note, the appreciation in market value of both
single-unit detached and condo/townhouse
units has continued to rise at a steady rate. The relative consistency in appreciation has more than doubled housing prices for entry into the ownership market over the past decade. Incomes have risen in the past few years, but not at the same rate as housing costs, which have grown more quickly. This is a challenge to ownership opportunity and affordable options.
single-unit & townhome AFFordABility
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Single-Family Value Townhome Value
Median Income Affordability Limit Low Income Affordability Limit Very Low Income Affordability Limit
Source: Multiple Listing Service; 2010-2021 Affordability Limits are based on American Community Survey Estimates 2010-21.
2022 and 2023 Affordability Limits are based on estimates of 2021 income adjusted for inflation using the Consumer Price Index
63
Ownership Market
AFFordABility trends
increAsing sAles Prices of houses in the
City directly impact monthly owner cost and
affordability. While some homes are owned
free and clear with monthly costs consisting
solely of taxes and insurance, new borrowers
are paying increasingly more for housing.
Appreciation as well as the large cost of
new construction places ownership entry
costs into higher brackets year to year, and
represent many of the higher monthly owner
costs recorded.
By cost per square foot, there has been a
$97 increase as tracked through home sales
since 2010. This increase is higher in the City of Monticello than in any of the peer communities in this study, as well as for rates
within the County.
-$40
-$20
$0
$20
$40
$60
$80
$100
$120
Mon�cello Big Lake Buffalo Saint Michael Wright Country
increAse in single-unit Price Per sq. Ft
monthly owner cost
Source: American Community Survey 5-Year Estimates 2021
Source: Multiple Listing Service
0 200 400 600 800 1000 1200
Less than $200
$200 to $399
$400 to $599
$600 to $799
$800 to $999
$1,000 to $1,249
$1,250 to $1,499
$1,500 to $1,999
$2,000 to $2,499
$2,500 or more
Housing Needs and DemandCity of Monticello
64
entry-level AFFordABility
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Mon�cello Buffalo Becker Big Lake Saint Michael
stArter home vAlue
Source: Zillow Data and Research (MLS Aggregator)
lower-income households that own their
housing commonly occupy what is referred
to as the “starter home” market. For purposes
of this study, this is tracked as the “Bottom Tier
Home Value” and is the median of the 5th to 35th
percentile of all home values within the City.
These homes followed the same general trend
both going into and coming out of the recession
- showing consistent steady increases in cost over
the past decade. Amongst peer communities,
Monticello still has the lowest-cost entry point
into the ownership market, even considering
appreciation.
However, the “starter home” market is still
becoming increasingly unaffordable for those who
live in the City. As of the most recent data and
estimates (2023), the median starter-home cost is just out of reach of the affordability limit for a City household earning 80% of the median income ($269,000 home entry cost vs. $263,000 purchase limit). As housing costs continue to rise throughout
the market, Monticello households below the AMI
will be increasingly precluded or “priced-out” of
ownership opportunities in the City, consistent with
occupancy and consumption records.
HouseholdIncome With Mortgage Without Mortgage
0% - 50% AMI 200 330
51% - 80% AMI 265 85
81% - 100% AMI 215 45
> 100% AMI 429 110
occuPAnt incomes oF houses AFFordABle to 50% Ami households
Source: HUD Comprehensive Housing Affordability Strategy
65
Ownership Market
Source: HUD Comprehensive Housing Affordability Strategy
house AvAilABility
single-unit home AvAilABility as tracked by the
Multiple listing Service is often inversely related to
prices - as inventory decreases, prices increase. As
the local housing market was coming out of the
recession, there was a market slowdown - though
this slowdown (as represented by months’ of
supply) still indicated a balanced market. Months’
supply is generally considered to be balanced
when there are 4-6 months’ of inventory in the
market. As that lessens, it is indicative of increased
competition for available homes in what is often
referred to as a “seller’s market”.
Since peaking in 2011 at more than three months,
the average days on market has dropped to
a steady 2-3 weeks on market over the past 4
years. There is seasonal variation within the data
that reflect common market periods, but time on
market has generally decreased to a point where
during peak real estate season, houses have
averaged less than 3 weeks since 2016.
This increased sales activity is directly reflected in
the months of supply metric, as it is the balance
between inventory and demand (number
of sales). Together, these metrics indicate a
competitive market with increased competition
among buyers that is causing cost inflation well
beyond the 2% average U.S. inflation rate. A slight
increase in months supply in recent years may be
due to the increase in units coming online within
the City which can signal a return to a more
balanced market.
0
1
2
3
4
5
6
7
8
0
20
40
60
80
100
120
140
160
Mo
n
t
hs S
u
p
ply
Da
ys on M
a
r
ket
Days on Market Months Supply
single-FAmily AvAilABility
5-yeAr APPreciAtion on mediAn sF home (By sAles Price):
9.3% AnnuAlly
$130,450
5-yeAr AverAge APPreciAtion rAte on mediAn sF home:
Source: Multiple Listing Service
Source: Multiple Listing Service
Housing Needs and DemandCity of Monticello
66
house AvAilABility
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
0
10
20
30
40
50
60
70
80 30 Yr. Fixed Mortgage Rate
Monthly Inventory Median Sales Price
3.7%4.5%2.7%6.8%5.5%
monthly inventory
Source: Multiple Listing Service
inventory of single-family houses for sale slowly
decreased from 2015 to 2021, with a slight increase
in the last two years. As inventory decreased, the
median sales price showed steady corresponding
increases - with fewer homes available, and steady
demand, markets shift toward favoring sellers
through increased competition and appreciation.
As available supply has slightly increased over the
past two years, there was still a marked increase
in the median sales price due to the skyrocketing
demand for home buying coming out of the
COVID-19 pandemic amid very low interest rates.
With recent high interest rates, the sales price should
stabilize.
From January 2015 to January 2021 during the
period of decreasing inventory, the median home
appreciated at a rate of 10.2% annually. The recent
slight increase in inventory has correlated with
appreciated price at a rate of 5.2% annually for the
median home. This shows that increasing inventory
helps to ease pressures on the market that cause
cost increases, though the months of supply metric
indicates there is still demand for units in the market
that will further shift buyer/seller indices toward a
more balanced market.
townhome AvAilABility And cost
Source: Multiple Listing Service
0
1
2
3
4
5
6
7
$-
$50
$100
$150
$200
$250
Months Supp
ly
Pr
i
c
e/S
q
. �
Price/Sq. �.Months Supply
67
Ownership Market
house sAles
sAle to list Price rAtios also display trends in
the ownership market that indicate increased
competition on an year-to-year basis - though
stabilizing as inventory of units on the market has
also stabilized. Since coming out of the recession,
sellers have generally accepted offers that have
been more than 95% of the asking price for single-
family homes in the City. The greatest peak in this
ratio came amid the COVID-19 pandemic in the
summer of 2021 when sellers accepted offers that
were nearly 105% of their list price.
With increasing supply coming in 2022, the sale
to list price ratio dipped slightly, tracking with
the slight decrease in median sales price. This
is consistent with growth in number of units and
indicative of a healthy market.
townhome Pct oF originAl Price (August 2023)100%
for 3 consecutive months
100% or over for
4 consecutive months
single-FAmily Pct oF originAl Price (August 2023)
Source: Multiple Listing Service
85%
90%
95%
100%
105%
Townhome Single-Family
mediAn sAles Price comPAred to listing
Source: Multiple Listing Service
Housing Needs and DemandCity of Monticello
68
85%
90%
95%
100%
105%
Mon�cello Big Lake Buffalo Saint Michael
single FAmily sAles Price comPAred to listing, Peer communities
house sAles
regionAl sAles trends largely indicate a
tightening (increased demand) of the market
for many peer communities as well. Though
Monticello’s market was slightly slower to see
increased competition and increasing offers
post-recession (when tracked through sale:listing
ratio), it then increased to become the second
community to see the median sale cost meeting
asking price, behind only Big Lake.
Monticello has the highest current sale:list price ratio among its peer communities, though many
have shown a consistency through the past year.
Off-peak sales without a large percent decrease
in sales price indicates that growth potential for
the region is strong, and demand is shifting into
other areas. It also likely indicates that Monticello (as the community with the largest ratio) is seeing demand that it cannot fill with the existing stock,
which has spillover into other regional communities
(both peer communities and others), although this
is impossible to tell solely from data.
townhome Pct oF originAl Price in Peer communities (july 2020)
99% in July 2020
100%
for 4 consecutive months
single-FAmily Pct oF originAl Price in Peer communities (july 2020)
Source: Multiple Listing Service
Source: Multiple Listing Service
69
Ownership Market
Source: Multiple Listing Service
mortgAge stAtus
Age oF householders is one of the aspects that
impacts mortgage status. While the average
householder nationally remains in their home
for 7 years, many members of the community
purchase homes to age into them, not for capital
investment, but to provide consistent shelter costs
throughout their ownership. The City of Monticello
has a large number of owner households with a
mortgage on their property, consistent with the
age range of the owners themselves. With 69%
of all owner-occupied homes being owned by
residents under the age of 55, the largest portion
of the ownership market will look to either remain
in their homes, or consider move-up housing
options.
The remaining 30% of owner households 55
or older may choose to age-in-place, while
some will require other housing options in the
community with age-accessibility options. The 2020 Community Survey indicated at different points desire for zero-entry, patio, and rambler style homes that serve aging populations, and capture well the construction styles and design features that serve aging households at various price points throughout the market.
The City should take into consideration plans to best serve these community members over the next 20-30 years as more residents continue to age into this range, with nearly 3,000 additional residents expected reach this age range by 2050.
75%75%
84%88%
75%73%
25%25%
16%12%
25%27%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mon�cello Buffalo Becker Big Lake St. Michael Wright Coutny
With a Mortgage Without a Mortgage
mortgAge stAtus
21%
48%
23%
7%
Percent
35 or Under 35 to 54 55 to 74 75 or Over
ownershiP mArket - Age
21%
48%
23%
7%
Percent
35 or Under 35 to 54 55 to 74 75 or Over
75%75%
84%88%
75%73%
25%25%
16%12%
25%27%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mon�cello Buffalo Becker Big Lake St. Michael Wright Coutny
With a Mortgage Without a Mortgage
Source: American Community Survey 5-Year Estimates 2018
Source: American Community Survey 5-Year Estimates 2018
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
Housing Needs and DemandCity of Monticello
70
ownershiP unit tyPes
ownershiP unit tyPe distriBution across the City
shows that the majority of owner households live in
single unit detached homes, though the city has
a healthy and growing number of attached unit
homes as well. Together, these two unit types make
up 89% of all ownership unit types, in the City - the
large remainder being manufactured housing (8%
of all ownership housing).
While the Condo as an ownership structure type within the market has never been prevalent in the City, the lack of 2-19 unit structures presents an ownership opportunity for denser redevelopment in areas of the downtown while maintaining ownership options through gradual redevelopment and density increase where financially feasible.
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S H E R B U R N E
C O U N T YWRIGHT C O U N T Y
××39
××43
××39
××18
××212
××106
××11
××50
××14
××2222
××17
××189
××287
EBROADWAY
ST
W B R OADWAYST
CSAH 43
90TH ST NE
7TH ST
CSAH 14
SCHOOL BLVD
85TH ST NE
E BROADWAY ST
CR-50
PA
R
K BLV
D
CHELSEA RD
W RIVER ST
CSAH 39
200T H ST
HARDING AVE NE
BRIARWOODAVE
NE
CAMERON ST
./10
./10
Printed By: smorrison, File: \\msa-ps.com\fs\Project\13\13731\13731002\GIS\13731002_ResProperties_byNoUnits_OwnerOcc_202000820.mxd
Print Date: 8/20/2020
Data Sources:Minnesota GIS DataWright County GIS & Assessor Data
Monticello, Wright County, MN
Owner Occupied
Residential
Properties
By Number of Units
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundary
Surrounding Municipality
Monticello
Number of Units
Single Unit Detached
Single Unit Attached
Manufactured Home Park
Right of Way
Monticello Housing Study
0 0.25 0.5 Miles
Unit Type Number of Units
% of Total Owner Occupied
Ownership as % of Unit Type
1-unit detached 2,910 77.1%87.9%
1-unit attached 467 12.4%72.1%
2-4 unit 67 1.8%65.7%
5-19 unit 17 0.5%3.2%
20+ unit 8 0.2%1.9%
Mobile Home 303 8.0%84.6%
ownershiP units - tyPe
Source: American Community Survey 5-Year Estimates 2021
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
71
Ownership Market
Source: American Community Survey 5-Year Estimates 2021
the most common household size for owner
households within the City is 2-person households.
Which often represents younger ownership markets
- areas where young family households with no
children will locate to be able to afford a “starter
home” within their price range before having
children. Knowing that the market in Monticello is
generally affordable when compared to the larger
region, the large number of 1-person and 2-person
households is typical under that context. These
smaller household types make up 57% of all owner
households in the City, slightly more than the County
as a whole, and more than all peer communities.
As these households continue to undergo expansion,
or changes in life circumstance, they often look
to move up into options that afford more space
to grow. This includes 3- and 4- bedroom units as
family size grows. Additionally, there has been a
trend of commuter-share households who may
prefer the housing cost and community character
of Monticello, who will continue to telecommute or
work from home in evolving employment markets,
which may increase need for housing size over time
at a rate unpredicted by needs based solely upon
household size requirements.
ownershiP housing size
owner household size
19%
38%14%
29%
MonƟcello
1-Person 2-Person 3-Person 4-or-more Person
16%
38%16%
31%
Wright County
1-Person 2-Person 3-Person 4-or-more Person
owner household size
Wright CountyBuffaloBecker
Big Lake St. Michael
17%
38%17%
29%
Buffalo
1-Person 2-Person 3-Person 4-or-more Person
16%
37%15%
32%
Becker
1-Person 2-Person 3-Person 4-or-more Person
11%
29%
26%
33%
Big Lake
1-Person 2-Person 3-Person 4-or-more Person
11%
29%
16%
45%
St. Michael
1-Person 2-Person 3-Person 4-or-more Person
19%
38%14%
29%
MonƟcello
1-Person 2-Person 3-Person 4-or-more Person
16%
38%16%
31%
Wright County
1-Person 2-Person 3-Person 4-or-more Person
19%
38%14%
29%
MonƟcello
1-Person 2-Person 3-Person 4-or-more Person
16%
38%16%
31%
Wright County
1-Person 2-Person 3-Person 4-or-more Person
19%
38%14%
29%
MonƟcello
1-Person 2-Person 3-Person 4-or-more Person
16%
38%16%
31%
Wright County
1-Person 2-Person 3-Person 4-or-more Person
17%
38%17%
29%
Buffalo
1-Person2-Person3-Person4-or-more Person
16%
37%15%
32%
Becker
1-Person 2-Person 3-Person 4-or-more Person
11%
29%
26%
33%
Big Lake
1-Person2-Person3-Person4-or-more Person
11%
29%
16%
45%
St. Michael
1-Person 2-Person 3-Person 4-or-more Person
17%
38%17%
29%
Buffalo
1-Person 2-Person 3-Person 4-or-more Person
16%
37%15%
32%
Becker
1-Person 2-Person 3-Person 4-or-more Person
11%
29%
26%
33%
Big Lake
1-Person 2-Person 3-Person 4-or-more Person
11%
29%
16%
45%
St. Michael
1-Person 2-Person 3-Person 4-or-more Person
17%
38%17%
29%
Buffalo
1-Person2-Person3-Person4-or-more Person
16%
37%15%
32%
Becker
1-Person 2-Person 3-Person 4-or-more Person
11%
29%
26%
33%
Big Lake
1-Person2-Person3-Person4-or-more Person
11%
29%
16%
45%
St. Michael
1-Person 2-Person 3-Person 4-or-more Person
Source: American Community Survey 5-Year Estimates 2018
Source: American Community Survey 5-Year Estimates 2018
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
Housing Needs and DemandCity of Monticello
72
ownershiP housing size
numBer oF Bedrooms - owner
0%
20%
42%
31%
7%
1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom 5+ Bedroom
the most common bedroom size for owner-
occupied housing in the City is in 3-bedroom units
(42%), followed by 4-bedroom units (31%) and
2-bedroom units (20%). Ownership housing often
has a larger size (more bedrooms) than rental units,
and is a component of the preference for families in
commonly seeking out ownership housing units rather
than rental. While smaller-unit ownership housing is
generally more affordable both within existing and
new-construction markets, balance between small
and large bedroom units within a community helps
to accommodate households who wish to remain
long-term residents through changes in need and
requirements.
Manufactured homes likely make up a sizable portion
of smaller ownership housing units listed as 1- and
2-bedroom units (up to 25% of these categories).
Development of smaller-size single-unit structures
outside of manufactured home communities are
an important component of the housing market,
especially as prices continue to appreciate so that
options are available for families without children,
aging households have the option to downsize, and
lower-income households have the ability to enter
the ownership market earlier.
0%
20%
42%
31%
7%
1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom 5+ Bedroom
0%
20%
42%
31%
7%
1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom 5+ Bedroom
Source: American Community Survey 5-Year Estimates 2018owner units By Bedroom size
-
200
400
600
800
1,000
1,200
1,400
1,600
1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom 5+ Bedroom
Source: American Community Survey 5-Year Estimates 2021
Data not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
73
Other Populations
73
Source: American Community Survey 5-Year Estimates 2018Data not updated in 2023 Housing Study
73
Housing Needs and DemandCity of Monticello
7474
otheRMARket sectoRs
Demand & Supply
74
75
Other Populations
homelessness in Greater Minnesota is often not a
central part of the housing conversation, as rates of
homelessness are much lower than those within the
Twin Cities metro. However, the local Continuum
of Care (Central CoC) still tracks and reports
homelessness within the community. A vital statistic is
the annual PIT (Point-In-Time) count, which takes the
total number of persons experiencing homelessness
on a given night in the community. This data include
those who are experiencing homelessness but
sheltered. For instance, all homeless individuals and
families in Wright County during the PIT in 2019 were
in some form of shelter - and all households with
children reported were in transitional housing.
It is important to note that the PIT does not always
capture all homeless households, especially in more
rural areas. Common categories that count as
homeless, though not “literal homelessness” include
doubling up with friends or family, stays in hotels,
and other types of “recovery” homes - although
these households may not have a fixed, permanent
nighttime residence.
homelessness
united wAy wright county community snAPshot:
• Over 6,000 Wright County
households live in poverty
• One in three homeless
persons continue to work
at a job
• Wright County ranks 10th
in population, but 5th in
child protection cases
• One-third of Wright
County homeless are
children, half under the
age of 5
0
2
4
6
8
10
12
Children under 18 Young Adults (18-24) Adults (over 24) Young Adults (18-24) Adults (over 24)
Households with Children Households Without Children
homelessness - wright county 2019 Pit
Source: Central MN Continuum of CareData not updated in 2023 Housing Study
Housing Needs and DemandCity of Monticello
76
trAditionAl meAsures of homelessness are
focused on assisting households and individuals
in finding housing, stabilizing employment, and
arranging long-term solutions. But there are
different risk factors associated with homelessness,
which include financial insecurity and housing
cost burden. Per the U.S. Department of Housing
and Urban Development, households who are
extremely low-income (<30% AMI), severely cost
burdened, renter households are those who are at
the greatest risk of facing homelessness, and are
classified “at-risk”.
In quickly appreciating and tight housing markets,
extremely low-income households are likely to
be the first “squeezed out”, and income shocks
are more impactful to a household remaining in
housing. In most recent data (2016), there are 200
households in the City of Monticello that meet
this definition of being at-risk of homelessness -
those with the lowest incomes, whose housing
costs make up the highest portion of their annual
incomes.
At-risk oF homelessness
200
255
150
200
190
225
180
0
50
100
150
200
250
300
At-Risk Households
Point-in-time count
The number of these at-risk households has
largely remained consistent on a yearly basis,
perhaps even slightly declining over time. As
recent income estimates show slight decreases,
while housing markets have shown increased
costs, it would be expected that the number
of households already living in the community
that classify would increase - especially under
consideration that this AMI standard is for the
11-county metro, which has largely shown income
growth over the same timeframe.
If income in the 11-county metro continues to
show strong growth, and local incomes remain
consistent or decrease slightly, more local
households fall into the definition of low-income
categories used by Minnesota Housing Finance
Agency and HUD which set 30%, 50%, 60%, and
80% AMI income standards for the region.
Source: Central MN Continuum of CareData not updated in 2023 Housing Study
77
Other Populations
senior households are anticipated to have the
largest percentage growth through 2050. Many
are current homeowners, and some will require
different accommodations, specialized housing, or
programming to assist aging-in-place.
Senior housing generally refers to the combination
of services and housing that allow seniors to
continue to live comfortably. This ranges from
continuing to live in their own home with virtually
no services, townhomes and apartments that offer
the ability to “downsize” living quarters, specialized
housing units with limited services, and different
types of assisted living facilities.
Generally, independent-living senior facilities
attract residents age 65 and older, while more
specialized facilities (assisted living, etc.) attract
residents who are age 80 and over and need
assistance with daily living activities.
The Community Basics section of this plan
detailed expected population increases for
senior populations in the City. In addition, growth
in population aged 35 and older often sees an
accompanying increase in senior populations as
persons aged 35-54 often have parents who will
locate closer to their children for care as they age
into more intensive services and care.
As varying levels of services are included with
different types of housing for aging populations,
typical affordability standards do not apply.
Often senior households will pay up to 50% of their
income for market rate senior housing, up to 90%
of their income for specialized and assisted living,
often funded in part through the sale of a home
they owned. Many households age 62+ in the City
are still homeowners, who have not yet sold homes
to fund other housing or services, while those 85+
are more likely to be renters as they continue to
age and need alternate accommodations.
Over the next 30 years, approximately 1,500
residents will age into the 80+ age category,
and may look to sell their housing for other living
options.
Aging PoPulAtions
110 100
29560120
15
10
175 85
15
75
10
0
50
100
150
200
250
300
350
400
450
Elderly Family Elderly Non-Family Elderly Family Elderly Non-Family
<30% AMI 31%-50% AMI 51%-80% AMI >80% AMI
Owner Renter
62+ household income And tenure - monticello
Source: HUD Comprehensive Housing Affordability Strategy
hou
s
e
h
o
l
d
s
Housing Needs and DemandCity of Monticello
78
Aging PoPulAtions
mAny Aging households will be able to use
funds from home sales for other housing options.
While home value increases make it more difficult
for lower-income households to enter the housing
market, it also means that senior homeowners
have access to extra capital through the rapid
appreciation of homes, and will have more funds
available to ensure care as they continue to age.
Assuming that a senior household owns their home
free and clear, and their home sells for a median
value of $265,450 (circa 2020), they would be
able to generate approximately $5,360 in annual
income from a 2% interest producing account
($446.50 per month) to supplement housing costs.
Monticello’s 2020 mill rate (at the highest district
value) signifies an additional $2,900 annually they
would have already been paying for housing cost,
which brings their monthly total housing allowance
to $690 without increasing share of income spent
on housing.
Importantly, many of the households who might
otherwise have sold their home during the past
decade may have delayed plans for other
housing options due to decreased housing
values associated with the recession, choosing
to continue to age-in-place. With recent
appreciation of home values in the City, these
households may be more interested in sale of their
home over the coming years should demand
continue to drive appreciation closer to the 8%
average annual mark post-recession.
In the next 10 years, this does not represent a drastic number of housing units that may be transitioning - likely between 125 and 145 units, or 12-15 annually. However long-term, especially as other 55+ age groups continue to age, this could represent upwards of 30 additional units per year opening to new owner households, which will help alleviate some market pressures through transition of existing housing stock - including more housing stock in desirable locations at various price points that had not been on the market for many years.
490
208
446
196
48
156 176
127 100
63
0
100
200
300
400
500
600
55 to 59 60 to 64 65 to 74 75 to 84 85 and over
Owner Renter
55+ detAiled household cAtegories - monticello
Source: American Community Survey 5-Year Estimates 2021
79
Other Populations
disABility
Persons with A disABility do not inherently
require access to specific housing types or
accommodations, dependent upon the type
and severity of the disability. More commonly,
persons with a disability receive services and
accommodations related to the disability as they
continue to age and require more specialized
forms of housing. This is due to the percentage of
population, by age, that experience a disability
being disproportionately higher in aging and senior
households.
When housing units are constructed, they are
not traditionally built using methods that easily
accommodate aging populations and often
require renovation such as wider doorways, lower
countertops, and zero entry showers/baths. For
instance, Monticello offers density, height, and
parking bonuses/reductions for new construction
with significant percentages of units built to
universal design standards (among other green
building standards) within overlay districts. These
standards will remain an integral component of
choice for aging households over the next 30
years.
Age Cohort 2018
Projected Percent Increase Projected 2050
0 - 9 Years 2,292 12.2%2,573
10 - 19 Years 1,876 -3.7%1,806
20 - 34 Years 2,757 11.2%3,066
35 - 49 Years 2,598 17.5%3,053
50 - 64 Years 2,274 -26.5%1,672
65 - 79 Years 1,094 55.7%1,703
80 and Over 601 252.6%2,120
Age Projections
*Tied to projections in Wright County, not directly to 2018 estimates.
3.4%
6.2%
14.0%16.4%
52.6%
0%
10%
20%
30%
40%
50%
60%
< 17 years 18 to 34 35 to 64 65 to 74 75 and over
PercentAge oF Age grouP with A disABility - monticello
Source: American Community Survey 5-Year Estimates 2018
Source: MN State Demographic CenterData not updated in 2023 Housing Study
Data not updated in 2023 Housing Study
Housing Needs and DemandCity of Monticello
80
AccessiBility
new mArket rAte And workForce units in the
City, both ownership and rental, will likely see an
increased demand for universal design features
due to projected age increases for residents -
both current and within the larger County (due to
hospital and transportation accessibility). Current
City trends show that while there are households
containing a member with a disability in all income
ranges, there is especially a need at both the
highest and lowest income categories, indicating
need for both affordable and market rate housing
options.
While lower-income households often have
disabilities go unreported or undiagnosed,
there are residents at all ages in households of
all incomes that require access to appropriate
housing design to meet their needs. Many middle-
income households may additionally fall into
lower-income categories as income becomes
more limited in retirement.
There is no database on a local level for units
currently accessible (due to the nature of private
market retrofits at varying levels), though estimates
nationally place accessible single family homes at
just 1% of the total housing stock.
This is important as, even at advanced ages,
many residents choose to continue to remain
in their own housing. For those that do move
at advanced ages, including in the ownership
market, over 50% choose to actively seek out
residential units with accessibility features such as
no-step entries, level style door handles, accessible
shelving and electrical, and single floor living. As
the population of the City continues to age, and
parents of residents move to be closer to their
primary caretaker, ensuring continued supply of
units with accessibility features should remain a
priority.
145
85 85
200
95 90 95 95
30
65
115
175
195
55
85
105
0
50
100
150
200
250
< 30% AMI 31% - 50% AMI 51% - 80% AMI > 80% AMI
Hearing/Vision Impairment Ambulatory LimitaƟon CogniƟve LimitaƟon Self-Care/Independent Living LimitaƟon
disABility & income - monticello
hou
s
e
h
o
l
d
s
Source: HUD Comprehensive Housing Affordability StrategyData not updated in 2023 Housing Study
81
Local Impacts
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81
Housing Needs and DemandCity of Monticello
82
locAl iMpActs
on Housing
82
83
Local Impacts
new construction
new construction in the city has increased
significantly post-recession, with the single-unit
detached market being the first residential
construction sector to rebound with significant
starts in 2012. Since 2012, the attached-unit market
also started seeing increases in starts annually
in the City, with every year bringing at least a
handful of new units online.
New single-unit permits peaked in 2014, briefly
declined and then peaked again in 2021. In
recent years, the attached-unit market has made
up 50% or more of all new single-unit construction
making up for a period of construction dominated
by single-unit attached.
While there is still a healthy amount of construction
activity in the single-unit market on an annual
basis, construction costs have been increasing -
and therefore ownership and rental costs as well.
This is one of the forces regionally and nationally
pushing toward attached-unit construction, as
efficiencies in construction and decreased land
cost create some cost-savings in the development
process.
Attached units are a key component of a healthy
market, especially in Monticello, where generally
lower regional incomes combined with increased
demand from in-migration means that more
affordable options are needed to ensure current
residents can continue to call Monticello home.
0
10
20
30
40
50
60
70
80
90
100
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Single-Unit A�ached Single-Unit Detached
*Data from January 2023-June 2023
new single-unit Permits By tyPe
Source: City of Monticello*Data includes January 2023-June 2023
Housing Needs and DemandCity of Monticello
84
new unit construction
new unit construction over the past decade
has also consisted of development in the multi-
unit or multi-family market. This development
primarily occurs to supplement the rental supply
with newer options, as many of the existing
rental units in the City are in older multi-unit
buildings. Multifamily development in the City
has historically existed in older housing stock, and
as residents commuting to the metro continues
to increase, expanding and diversifying options
across market segments helps to expand
opportunity for a variety of household types
across all incomes, family types, and preferences.
Recent market rate developments in the City
report healthy lease up rates with less vacancy
required than expected in development
assumptions, and it is likely that there is a
continued market for multifamily housing to
continue to serve as market differentiators for the
City.
In years where multi-unit construction occurs, it
makes up a significant portion of housing starts.
26% or more of current rental units in the market
exist in 20+ unit buildings with new larger
apartment buildings fueling unit development in
recent years. There is also opportunity to expand
construction while balancing housing options
through encouragement of new single-unit
rental properties both attached and detached,
which currently exist in the core city as well as in
subdivisions and neighborhoods throughout the
City in developments known as build-to rent-units.
0
50
100
150
200
250
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023*
Mul�-Unit A�ached Detached
*Data from January 2023-June 2023
new unit Permits By tyPe
Source: City of Monticello
*Data includes January 2023-June 2023
Note: Monticello Crossings permits spread across 2015 and 2016.
85
Local Impacts
new unit AFFordABility
Permitted units are charged permit fees, which
are based on the total cost of construction
(valuation) - as market costs are largely
unknowable at the time of permitting. This makes
judging future affordability of proposed units
somewhat difficult, as builders and developers are
taking a risk in development that their investment
will come online in an appreciated market to
maximize returns.
While there is no consistent, perfect method to
anticipate future market costs based solely on the
cost of construction, the basis of just construction
costs adjusted for builder/developer profit show
general ranges for what a buyer would pay for the
type and quality of construction needed in new
single-family starts regardless of location in the
City.
The National Association of Home Builders reports
a decreasing gross profit since 2020 with current
percentages at 18.2%. Using this gross profit
percentage applied to valuation over the past
5 years, the chart below shows the approximate
market construction cost of units (cost to buyer)
that have been permitted.
This is necessary to track trends in new
construction, as many homes may not be
directly listed with the Multiple Listing Service, but
marketed and sold either before built, or directly
by the developer.
In recent years, the shift from low-cost to higher-
cost can be seen through the number of units with
higher construction costs year-to-year.
0
5
10
15
20
25
30
35
40
45
2015 2016 2017 2018 2019 2020 2021 2022 2023
< $150,000 $150,001 - $200,000 $200,001 - $250,000 $250,001 - $300,000 $300,001 - $350,000 $350,001 - $450,000 > $450,000
sF new construction - construction cost to Buyer
Source: City of Monticello
Housing Needs and DemandCity of Monticello
86
new unit AFFordABility
new unit vAluAtion since 2015 shows a
decrease in new unit construction in several areas
of the market - slightly less construction at the most
affordable price points, slightly less construction
in the highest-cost price points, and increased
construction in the middle of the market.
Though house construction in recent years has
spanned many building sales price categories
(consumer costs excluding land), in terms of
affordability much construction is still higher than
many households that live in the City can afford. The low end of the buyer construction cost range (<$300,000) would be “affordable” to a household earning approximately $90,000 annually, which is still above the average median household in the City. The high-end range ($350,000+), equates to affordable cost for a household earning $104,000 annually, which is nearly $20,000 greater than the median household income for the City - and does not include significant land pricing.
Ownership Units 2015 2016 2017 2018 2019 2020 2021 2022 2023
< $150,000 0 0 1 0 1 0 0 2 0
$150,000 - $200,000 15 25 6 10 16 29 18 0 0
$200,001 - $250,000 16 14 34 6 8 28 26 5 6
$250,001 - $300,000 7 5 6 15 10 7 16 16 7
$300,001 - $350,000 4 10 8 7 5 4 21 6 1
$350,001 - $450,000 4 6 6 3 0 0 14 5 2
> $450,000 0 1 0 0 0 0 0 1 1
new single-FAmily construction cost to Buyers
Source: City of Monticello
Approximate Sales Cost
87
Local Impacts
Approximate Sales Cost
S H E R B U R N E
C O U N T Y
W R I G H T C O U N T Y
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CSAH11
PARKPLACED
R
H
A
U
G
A
VENE
RIVER
VIE
W
L
A
W RIVER ST
180THAVE
CR-50
20 0T H S T
ORMSBEE ST S
7TH ST
WRIVERST
W B R OADWAYST
CSAH 39
DUNDAS RD
CSAH 43
FALLON AVE NE
85TH ST NE
CAMERON ST
EDMONSONAVENE
CSAH 39
CSAH 14
EBROADWAYST
OAKWOOD
DR
RIVERVIEW DR
JASON AVE
SCHOOL BLVD
EBROADWAYST
120TH ST NE
PA
R
K BLV
D
FENNING AVE NE
JASONAVENE
CHELSEA RD
85TH ST NE
196TH ST
90TH ST NE
HARDING AVE NE
BRI
A
R
W
O
O
D
A
VE
NE
CSAH 75
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Monticello, Wright County, MN
Residential
Proper ties
Total Property
Value
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundary
Surrounding Municipality
Monticello
Total Property Value
Less Than $50,001
$50,000 - $200,000
$200,001 - $500,001
$500,001 - $1,000,000
$1,000,000 - $5,000,000
Greater than $5,000,001
No Assessed Value
Non Residential Parcels
Right of Way
Monticello Housing Study
0 0.25 0.5 Miles
Data Sources:Minnesota GIS DataWright County GIS & Assessor Data
vAluAtion
the vAluAtion of land in the City helps to portray
local impact and accessibility of the housing
market. Residential values have increased
significantly in recent years consistent with overall
market conditions, and outpacing commercial
valuations by as much as 3-to-1.
As assessments and valuations roll into housing
cost for resident homeowners, increasing
valuations can lead to increasing unaffordability
for residents who own their homes, especially
those with limited, fixed, or decreasing incomes. As Monticello’s median family income has remained relatively steady since 2010, this can create tension in the housing market where owners invested at the top of their affordability limits can see increases that make their current housing unaffordable. In the 2020 Community Survey, 10% of homeowner respondents indicated
they had to forego other needs such as food, healthcare, or childcare to continue to be able to afford housing in the past 5 years.
Appreciating housing is important to healthy
markets, and provides a stable financial base
for homeowners into the future. However as the
capital is tied up into housing, the increased costs
at rates higher than inflation and income increase
can become burdensome over time.
Spatially within the City, subdivision development
in the residential market generally sees higher
property values than areas built out in the City
center, with the exception of riverfront properties.
Attached-unit affordability is also shown directly
in this map, as observed through categorization
differences between detached and attached
ownership areas.
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
Housing Needs and DemandCity of Monticello
88
imProvement vAlue rAtio
PArcel vAluAtion is made up of two components
- land value and improvement value. While both
land and improvements (buildings) generally
appreciate over time, development and use
trends can drastically shift associated land
values over the course of decades. In practice,
this means that very desirable areas have large
increases in land value, while other areas grow at
rates more consistent with overall inflation.
This shifting land value impacts the housing
market due to the overall usable life of residential
buildings. Single-unit homes have a usable life of
100 years or more, while small- to mid-size multi-
units buildings can have a usable life between 65
and 80 years if properly maintained.
Since construction and development is based
heavily on financial incentive, parcels with low
Improvement:Land value ratios are more prone
to redevelopment, and will often see increased
pressure for teardown/rebuilds even in the single-
family market.
In the City, newer construction generally shows
higher Improvement:Land Value ratios. This is
partially due to lower land costs (location) as
well as increased construction cost and buyer
preference (size/bedrooms/etc.). Areas of the City
that are most prepared for redevelopment are, in
general, areas of the downtown and central city
that have older housing stock and low ratios, while
greenfield construction will increase values on the
edges of the City.
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W RIVER ST CR-50
200T H S T
7TH ST
W B R OADWAYST
CSAH 43
85TH ST NE
CAMERON ST
CSAH 39
CSAH 14
EBROADWAY
ST
SCHOOL BLVD
E BROADWAY ST
PA
R
K BLV
D
CHELSEA RD
90TH ST NE
HARDING AVE NE
BRI
A
R
W
O
O
D
AV
E
N
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Monticello, Wright County, MN
ResidentialProperties
Improvement Ratio
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundary
Surrounding Municipality
Monticello
Improvement Ratio
Less than or Equal to 1.0
1.0 - 3.0
3.1 - 6.0
6.1 - 10.0
10.1 - 15.0
Greater than 15.0
No Year Built Data
Non Residential Parcels
Right of Way
Monticello Housing Study
0 0.25 0.5 Miles
Data Sources:Minnesota GIS DataWright County GIS & Assessor Data
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
89
Local Impacts
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WRIGHT COUNTY
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WRIVERSTCR-50
200THST
7THST
WBROADWAYST
CSAH 43
85TH ST NE
CAMERONST
CSAH39
CSAH 14
EBROADWAY
ST
SCHOOLBLVD
E BROADWAY ST
PA
R
K BLV
D
CHELSEARD
90TH ST NE
HARDING AVE NE
BRI
A
R
W
O
O
D
AV
E
N
E
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Monticello, Wright County, MN
ResidentialProperties
Improvement Ratio
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundary
Surrounding Municipality
Monticello
Improvement Ratio
Less than or Equal to 1.0
1.0 - 3.0
3.1 - 6.0
6.1 - 10.0
10.1 - 15.0
Greater than 15.0
No Year Built Data
Non Residential Parcels
Right of Way
Monticello Housing Study
00.250.5Miles
Data Sources:Minnesota GIS DataWright County GIS & Assessor Data
AvAilABle lots
Aside From redeveloPment, there are parcels
in the City that remain vacant and awaiting
construction/development of some type. The map
above shows residential parcels which have an
assessed improvement value of $0 and are zoned
for residential development. Some of these are
already platted and serviced, while other require
re-platting.
Available parcels are located in several zoning
districts, though the number available in each
varies. Notably, there are significant numbers
of parcels identified as being available within
the downtown of the City. Though individual
parcels, they provide opportunity for slight
increases in density that supports other downtown
development.
This analysis is largely focused on showing which
parcels are available for potential development,
and is not intended to be all-encompassing. The
City maintains a map of available residential
parcels that have been platted in subdivisions
which contains more detailed information on
specific numbers of units available for construction
in each.
A full-size scalable version of this map is located
in the appendix to better identify parcels with
potential for development opportunity.
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C O U N T YWRIGHT C O U N T Y
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EBROADWAY
ST
W B R OADWAYST
CSAH 43
90TH ST NE
7TH ST
CSAH 14
SCHOOL BLVD
85TH ST NE
E BROADWAY ST
CR-50
PA
R
K B
LV
D
CHELSEA RD
W RIVER ST
CSAH 39
200TH S T
HARDING AVE NE
BRIARWOODAVE
NE
CAMERON ST
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Data Sources:Minnesota GIS DataWright County GIS & Assessor Data
Monticello, Wright County, MN
AvailableResidential
Proper ties
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundary
Surrounding Municipality
Monticello
Residential Vacant Land
Single - Unit Bank Owned
Right of Way
Monticello Housing Study
0 0.25 0.5 Miles
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
Housing Needs and DemandCity of Monticello
90
Without action, excessive local barriers
drive up housing costs, undermining
affordable housing
at most income levels, and resulting in
declines in homeownership. Demonstrated
success in
addressing these challenges can
help overcome apprehension about
neighborhoods evolving and
growing through new development.
- 2016 White House Housing Development Toolkit
Updated: February 2020
Jim Thares | Jim.Thares@ci.monticello.mn.us | (763) 271-3254Properties for Sale
Legend
EDA Owned - Guided Downtown
EDA Owned - Guided Residential
City Owned Parking Lots
1.1.
2.2.
3.3.
4.4.
5.5.
6.6.9.9.
10.10.
11.11.
12.12.
13.13.
14.14.
15.15.16.16.
17.17.18.18.
19.19.7.7.
8.8.
| Guided Downtown/Residential
1 155-010-017011 City of Monticello 0.47 $0.00 CCD
2 155-010-050011 Monticello EDA 0.19 $0.00 CCD
3 155-010-054011 Monticello EDA 0.25 $0.00 CCD
4 155-010-036090 Monticello EDA 0.10 $0.00 CCD
5 155-010-052071 Monticello EDA 0.22 $0.00 CCD
6 155-010-034130 / 155-010-034140 /
155-010-034150 Monticello EDA 0.36 $0.00 CCD
7 155-010-034102 Monticello EDA 0.19 $0.00 CCD
8 155-010-034040 City of Monticello 0.50 $0.00 CCD
9 155-010-067010 / 155-010-067060 /
155-010-067100 Monticello EDA 1.33 $0.00 CCD
10 155-010-052120 Monticello EDA 0.07 $0.00 CCD
11 155-010-052110 Monticello EDA 0.43 $0.00 CCD
12 155-019-007050 / 155-019-008010 /
155-010-067100 Monticello EDA 1.40 $0.00 R-2
13 155-010-052132 / 155-010-052140 City of Monticello 0.28 $0.00 CCD
14 155-010-052150 Monticello EDA 0.23 $0.00 CCD
15 155-010-034080 City of Monticello 0.25 $0.00 B-3
16 155-010-034101 City of Monticello 0.09 $0.00 B-3
17 155-010-034030 City of Monticello 0.25 $0.00 B-3
18 155-010-034020 City of Monticello 0.25 $0.00 B-3
19 155-010-035011 City of Monticello 0.70 $0.00 B-3
PID Owner Size (Acres)2019 Taxes Zoning
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
90
91
Local Impacts
AvAilABle lots - city-owned
A comPonent oF AvAilABle PArcels; there
are parcels in Monticello that are under direct
ownership and control of the EDA. Many of
these parcels are available for residential use,
and should continue to be considered in unique
strategies that can increase affordability, types of
development, and integration of tenure types.
Local control over development parcels allows
Monticello the ability to heavily influence any
future development that would occur, utilizing
known needs and the vision of the comprehensive
plan to guide development types in key areas.
Parcels displayed on this map are available
parcels that are zoned for some form of residential
use, and exclude all land records that indicate
park use for the properties. While many of
the properties are within neighborhoods and
subdivisions, there are also parcels in key corridors
along Interstate 94, the downtown, and other
districts.
The City has consciously invested into securing
properties for future redevelopment, and should
continue to do so as growth pressures continue to
ensure quality design and housing that meets the
needs of residents.
!#"94
!#"94
S H E R B U R N E
C O U N T Y
W R I G H T C O U N T Y
××11
××17
××39
××39
××106
××18
××212
××14
××43
××50
××2222
××189
××287
W RIVER ST CR-50
200TH ST
7TH ST
W B R OADWAYST
CSAH 43
85TH ST NE
CAMERON ST
CSAH 39
CSAH 14
EBROADWAY
ST
SCHOOL BLVD
E BROADWAY ST
PA
R
K B
LV
D
CHELSEA RD
90TH ST NE
HARDING AVE NE
BRI
A
R
W
O
O
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AVE
NE
./10
./10
Printed By: smorrison, File: \\msa-ps.com\fs\Project\13\13731\13731002\GIS\13731002_CityOwned_20201008.mxd
Print Date: 10/8/2020
Data Sources:Minnesota GIS DataWright County GIS & Assessor Data
Monticello, Wright County, MN
City Owned
Proper ties
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundary
Surrounding Municipality
Monticello
Available City Owned Properties
Right of Way
Monticello Housing Study
0 0.25 0.5 Miles
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
Housing Needs and DemandCity of Monticello
92
city-owned lots By zoning
AvAilABle lots under EDA ownership have
been located in a variety of different districts
with different associated densities and building
structure types - ranging from Single and Two
family Residential, Medium Density Residential,
Traditional Residential, Residential Amenities
District, and carryover parcels that have
undergone zoning conversion to PUD.
While some of these parcels are dedications
from development, they are indicative of
the opportunities that the City has to control
development potential in different areas of the
City across zoning districts.
As the City updates the comprehensive plan and
looks categorically at future land use and densities
in specific areas, continuing proactive acquisition
of parcels in areas that advance City housing
policies should be a key consideration - including
continuing to activate and increase density and
vibrancy in the downtown, subdivisions with ranges
of unit types, structure sizes, and tenure, and
more intensive development options in areas with
transportation and easy amenity access.
Downtown inset is on pg. 90.
!#"94
!#"94
S H E R B U R N E
C O U N T Y
W R I G H T C O U N T Y
××11
××17
××39
××39
××106
××18
××212
××14
××43
××50
××2222
××189
××287
W RIVER ST CR-50
200TH ST
7TH ST
W B R OADWAYST
CSAH 43
85TH ST NE
CAMERON ST
CSAH 39
CSAH 14
EBROADWAY
ST
SCHOOL BLVD
E BROADWAY ST
PA
R
K B
LV
D
CHELSEA RD
90TH ST NE
HARDING AVE NE
BRI
A
R
W
O
O
D
AV
E
NE
./10
./10
Printed By: smorrison, File: \\msa-ps.com\fs\Project\13\13731\13731002\GIS\13731002_CityOwned_ByZoning_20201008.mxd
Print Date: 10/8/2020
Data Sources:Minnesota GIS DataWright County GIS & Assessor Data
Monticello, Wright County, MN
City Owned
Proper ties
By Zoning
Streets
Interstate
State Road
US Highway
Water Body
Parcel Boundary
Surrounding Municipality
Monticello
Right of Way
Monticello Zoning
Highway Business
Medium Density Residential
Monticello Housing Study
0 0.25 0.5 Miles
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
93
Local Impacts
residentiAl PlAtted lots
PlAtted ProPerties within the City represent
current available parcels that are ready for
development, including approved numbers of
total units for potential purchasers both in the City
and those looking to relocate.
There are currently 5 subdivision developments
that have been platted, and include opportunity
for 153 new units in the City. These are included
in demand calculations to best ensure accurate
availability of lots and units ready for creation.
Three of these subdivisions are largely built out,
containing opportunity for 1, 2, and 5 units in
Hillside Farm, Club West, and Carlisle Village
respectively. Sunset Ponds recently received
approvals and permits for completion.
The total unit mix across these subdivisions
indicates a unit mix consistent with recent
development across both single-unit and multi-unit
building structures.
Residential Platted Properties
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Featherstone
Autumn Ridge
Hunters Crossing
Carlisle Village
4th Addition
Edmonson Ave
nm
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Elementary School
Monticello Middle School
Monticello
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Little Mountain
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Eastview
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s
Monticello
Country Club
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Spirit Hills
Hillside Farm
Haven Ridge
94
25
75
39
CHELSEA RD
BROADWAY ST
SCHOOL BLVD
FENNING AVE
EDMONSON AVE
PINE ST
RIVERVIEW DR
GOLF COURSE RD
25
94
39
To Twin
Cities
To St. Cloud
3 Miles to T.H. 10
Document Path: K:\015355-000\GIS\Maps\ResidentialPropertyMap_PlattedAvailable_Base.mxd
LEGEND
City Limit
Previous Preliminary Plat -
Requires Platting
Multi Family Available
Single Family Available
¯
0 1,000500
Feet
Development Single Family Lots Multi Family Lots
Featherstone 25 0
Hillside Farm 1 0
Carlisle Village 5 13 buildings / 60
Autumn Ridge Villas 24 0
Club West 2 0
Haven Ridge 27 0
Sunset Ponds 0 2 buildings / 9
Totals:84 69 units
Updated: February 2020 | Available Platted and Utility Serviced Lots
Data not updated in 2023 Housing Study. Map does not reflect changes since 2020.
Housing Needs and DemandCity of Monticello
94
one oF the costs directly passed on to
consumers in both ownership and rental markets
are fees associated with development. These fees
are assessed by the City in order to ensure quality
of development, as well as to mitigate potential
negative impacts associated with increased
residential density. Monticello’s fee schedule
is reproduced on an annual basis, reassessed
to ensure fees charged meet the required
intent without dissuading development due to
prohibitive cost.
Permit Fees:
The amounts in the table below are a sample
of recent per-unit permit fees for development
projects in the City over the past four years. These
fees are used for illustrative purposes only, to give
relative example of how individual subdivision,
building, or structure types have different
associated permitting and development fees
dependent upon project details and levels of
review.
develoPment Fees
Type
Total Project Valuation Revenue Plan Check State Fee SAC Fees WAC Fees Total per Unit
Multi-Family
Construction
$15,500,000 $3,483.12 $364.37 $20.88 $2,576.99 $56.08 $6,501.58
$5,125,000 $510.82 $272.76 $32.05 $4,651.94 $88.15 $5,556.00
$6,480,000 $367.40 $238.81 $23.85 $4,190.00 -$4,820.06
Single-Family
Attached
$141,864 $2,024.04 $320.71 $70.93 $4,315.00 $833.00 $7,563.68
$159,326 $2,130.96 $352.44 $79.66 $4,315.00 $833.00 $7,711.06
$203,200 $2,364.32 $417.78 $101.60 $4,190.00 $833.00 $7,906.70
$218,971 $2,453.42 $1,114.16 $109.49 $4,190.00 $833.00 $8,730.07
$224,762 $2,489.06 $1,167.32 $112.38 $4,190.00 $833.00 $8,791.76
Single-Family
Detached
$152,000 $2,038.67 $340.57 $76.00 $4,190.00 $833.00 $7,478.24
$187,528 $2,252.51 $1,024.46 $93.76 $4,190.00 $833.00 $8,393.73
$215,000 $2,457.66 $1,128.71 $107.50 $4,315.00 $833.00 $8,841.87
$270,000 $2,784.36 $1,341.07 $135.00 $4,315.00 $833.00 $9,408.43
$302,000 $2,946.44 1,464.62 $151 $4,190.00 $833.00 $9,585.06
Source: City of Monticello
Per Unit Cost
Data not updated in 2023 Housing Study
95
Local Impacts
develoPment Fees comPArison
develoPment Fees vary from community to community. While most communities charge similar types
of fees, the way each municipality calculates those fees and the rates they set can vary significantly
depending on their differing contexts and needs. A detailed summary table comparing a sample of
Monticello’s development fees for 2023 in relation to its regional peers can be found in the Appendix.
One-to-one comparisons between fees are not always possible given the differing methods for
calculating fees amongst the municipalities. For example, Monticello calculates its cash-in-lieu of parkland
dedication fee based on the fair market value of the raw land in the new subdivision (set at 11%), while
the City of Buffalo charges different rates based on the number and type of residential units being
created ($2,900 per single family unit or $5,800 per duplex).
Two types of fees that are able to be compared on a relatively one-to-one basis are area trunk utility
charges and availability/access charges for water, sanitary sewer, and stormwater infrastructure. For
the sake of comparison, the tables below detail the how these charges would vary if the Savanna Vista
multi-family apartment complex and Featherstone 6th Addition single family home developments were
hypothetically built in each community (these are real world projects planned or already constructed in
the City of Monticello). These calculations are for the sake of comparison and may not reflect the true
cost of these charges in each community.
Multi-Family Fee Comparison - Savanna Vista (200 units / 10.73 acres)
Residential Trunk Area
Utility Charges
Water Sanitary Stormwater TOTAL
Monticello $236,400 $328,200 $47,169 $611,769
Buffalo $21,535 $20,323 $3,756 $45,613
Becker $29,465 $35,645 $68,017 $133,127
Big Lake $17,705 $57,191 n/a*$74,895*
St. Michael $180,000 $509,400 $124,000 $813,400
Residential Availability/
Access Charges
Water Sanitary TOTAL
Monticello $99,400 $911,000 $1,010,400
Buffalo $1,894 $7,962 $9,856
Becker $1,042 $1,400 $2,442
Big Lake $440,000 $647,000 $1,087,000
St. Michael $1,190,400 $590,400 $1,780,800
Housing Needs and DemandCity of Monticello
96
develoPment Fees comPArison cont.
Single-Family Fee Comparison - Featherstone 6th Addition (21 units / 10 acres)
Residential Trunk Area
Utility Charges
Water Sanitary Stormwater TOTAL
Monticello $24,822 $34,461 $43,960 $103,243
Buffalo $20,070 $18,940 $3,500 $42,510
Becker $27,460 $33,220 $51,830 $112,510
Big Lake $16,500 $53,300 n/a*$69,800*
St. Michael $23,604 $59,388 $62,769 $145,761
Residential Availability/
Access Charges
Water Sanitary TOTAL
Monticello $10,437 $95,655 $106,092
Buffalo $1,894 $7,962 $9,856
Becker $2,382 $3,200 $5,582
Big Lake $75,285 $111,825 $187,110
St. Michael $124,992 $61,992 $186,984
For these two developments, Monticello’s total fees are neither the most or least expensive amongst
its regional peers. For availability/access charges, St. Michael and Big Lake are the most expensive
communities, with Monticello in third place. Buffalo and Becker’s availability/access charges by
comparison are dramatically less than the other communities since they charge a flat amount per
development rather than calculate their fees based on the number of units or total acreage in the
development. This discrepancy is seen most dramatically with the hypothetical 200-unit multi-family
apartment complex, and demonstrates how different methodologies for calculating fees can impact the
total cost passed on to consumers.
*Stormwater trunk area utility charges are determined by the City Engineer in Big Lake, therefore an accurate total cost cannot be computed for this exercise.
However, it should be assumed their total trunk area fees would be higher than the amount listed in the above tables.
Source: Municipality Development Fee Schedules
97
Local Impacts
condo And townhome develoPment
condos are smaller, owner-occupied housing units
that are a popular, and often more affordable,
alternative to a typical single-family home. Condos
come in many forms including larger, multi-story
buildings or in attached style housing. Townhomes
are an example of a form of condo ownership
type that are categorized as a smaller attached
home that can exist in blocks of 2 or more units.
Townhomes mostly fall under ownership as a condo
but can also be found in rentable units. They can
be a substitute for a starter home and are found
both in traditional downtown neighborhoods as
well as new developments nationwide. Although
each have their respective differences, townhomes
and condos can often meet the housing needs of
young families and elderly people who might be
interested in a smaller space at a more affordable
price.
Monticello has a larger inventory of condo and
townhomes than its peers and performs better
than average nationwide in the number of
owner-occupied 1-unit detached and condo
developments as a percentage of total housing
units. However, the near zero vacancy rate
for owner-occupied units combined with an
increasingly unaffordable single-family home and
rental market suggest that there is a great need to
supply more affordable owner-occupied housing
options like townhomes and condos.
Recent developments include the Carlisle Village
6th addition which became active as of 2021
offering townhomes smaller than 2,000 sq. ft. at
roughly a $300,000 price range. Stoney Brook
Village Development was recently proposed and
approved offering townhomes for $400,000.
While these units tend to be less expensive than
single-family detached homes in Monticello, they
still fall out of reach for the median household
earning $84,444. Barriers and strategies for
improving the affordability of townhomes and
condos are explored below.
Source: Mark Elliot Homes
Stoney Brook Village Twinhome Development
BArriers
• Costs are rising. Interest rates are high, and inflation has pushed construction costs up. Since January 2023, construction material cost is up 11.3% and labor cost is up 2.9% for the national average according to CoreLogic, which monitors a wide variety of construction materials and labor for the building industry. Many projects originally set for 2021 were delayed because of construction costs and funding drying up.• Developers are looking for federal and municipal support to finance projects. Currently, in order to receive financing from lenders, condos must have sold units ( i.e. 50% condos sold = 50% loan). This hampers development where there simply isn’t the capital stack available. • Developers are fearing legal liabilities from owners’ associations. According to the MinnPost, until recently, condo developers were vulnerable to lawsuits from owners’ associations who sue for poor construction. Apartment developers are not liable for construction issues.
• Purchasers of condos have limited access to a mortgage. Unless 80% of condos or more are sold in the development, would be buyers are not able to receive a mortgage, a Wisconsin State Journal article reported. Without a guarantee that units will sell, developers hold off.• Demand for apartments outweighs condos and townhome. With unaffordable options for condos, townhomes, and single-family homes, people are substituting into apartment units which drives up more demand for rental units. Due to this high demand, lenders are more than comfortable financing new rental projects, with condo and townhome projects falling to the wayside.• Restrictive zoning. Rules and development standards can block condo and townhome development from being economically viable for developers
Housing Needs and DemandCity of Monticello
98
solutions
• Adjust zoning code to allow for more condo development. The City should consider reducing minimum lot size for condo and townhome units which sit at 5,500-7,000 sq. ft. depending on unit type. Zoning districts should be evaluated for where condo and townhome development are allowed.• Promote change in law that gives condo developers greater protection from lawsuits. This law has decreased the risk that condo developers take on and can encourage new development to take place.• Support condo and townhome purchasers with greater access to mortgages. Public-private partnerships can alleviate the burden of financing the purchase of a condo or townhome by offering mortgage programs for zero-interest or incentives for first time buyers.• Provide more routes to financing for condo developers. Collaboration between developers, government, and finance sector can bring about additional paths to capital for developments.
sPotlight: AFFordABle townhome
develoPment in FloridA
St. Pete, FL recently approved three affordable townhome projects which in completion will offer 64 homeownership opportunities to residents. Lot sizes average 2,500 sq. ft. per unit. In a partnership between the City and Habitat for Humanity of Pinellas and West Paco Counties, these projects utilize multiple programs designed to incentivize and reduce costs for developers. Units will be offered in a range of $219,000 to $279,000 meets affordability limits of 80% AMI (area median income) and above buyers. Additionally, Habitat will offer 30-year, 0% interest mortgages on the 64 townhomes.
Source: St. Pete Rising
The Grove Townhomes
99
Local Impacts
zoning
monticello’s zoning ordinAnce is written
to have 6 main residential districts. Counting
permitted (by-right) uses, this includes 3 low-density
single-family only districts, 1 medium density single-
family only district, 1 single-family/townhome
district, and 1 townhome/multi-family district. As the City looks to update future land uses and development patterns, it may be beneficial to
continue to proactively anticipate development in certain districts that promotes mixes of unit types, sizes, and structures within subdivision development and platting to offer increased access to residents. Other considerations may include revisions to districts that allow more “missing middle” housing (3+ unit) housing by-right in certain districts, to save on developer holding costs that increase the price of housing.
Minimum Residential Lot Size Minimum Lot Width Single-Family Two-Family 3-4 Unit 5+ Unit Accessory Dwelling
Zoning
District
AO 2 acre 200’P P/C
RA 14,000 sq. ft. **90’ **P P/C
R1 10,000 sq. ft. **70’ **P P/C
R2 10,000 sq. ft. SF
10,000 base + 4,000 /unit MF
7,000 sq. ft Duplex/Att.
80’P P C*C P/C
TN 7,500 sq. ft.45’P P/C
R3 10,980 sq. ft./unit TH
5,124 sq. ft./unit MF 80’C P P P/C
R4 30,000 sq. ft.-C C P/C
B1 8,000 sq. ft 80’C C P/C
P = Permitted Use; C = Conditional Use*Allowed as Permitted Use in Broadway and General CCD subarea in certain situations** Lot averaging can be utilized in subdivision developmentData not updated in 2023 Housing Study
The residential base zoning districts established
in this section are intended to provide a variety
of housing options in a comfortable, healthy,
safe, and pleasant environment in which to live
and recreate at a neighborhood level.
- City of Monticello Zoning Ordinance
Housing Needs and DemandCity of Monticello
100
zoning
Point-in-time
County Hwy 75
Chelsea Rd
State Hwy 25
85th St NE
9 0th St N E
Linn St
Pine St
E 7th St
School Blvd
Riverview Dr
Cedar St
W River St
Marvin Rd
Jason Ave NE
Dundas Rd
W Broadway St
Hart Blvd
Country Ln
Haug Ave NE
Elm St
W 4th St
Fenning Ave NE
Oakwook Dr
Mallard Ln
95th St NE
Fallon Ave NE
Edmonson Ave NE
Mississippi Dr
W 5th St
W 7th St
Sandberg Rd
Pelican Ln
Falcon Dr
Fenning Ave NE
Walnut St
Oak Ridge Dr N
Oriole Ln
Club View Rd
Broadway St
Hillcrest Rd
E River St
Hedman Ln
Mill Trail Ln
Fallon Ave NE
Wright StNew St
Marvin Elwood Road
Ramsey St
W 6th St
River Mill Dr
Wildwood Way
Hilltop Dr
Mill Run Rd
Oakview Ln
Farmstead Ave
Martin Dr
E 3rd St
E 3rd St
Red Rock Ln
Gillard Ave NE
Maple St
Fallon Dr
Willow St
Eastwood Ln
Graystone Ave
Marvin Elwood Rd
Fieldcrest Cir
Fairway Dr
Jason Ave NE
Vine St
Meadow Ln
Jerry Liefert Dr
Praire Road
Starling Dr
Palm St
Fallon Ave NE
Golf Course Rd
Fallon Ave NE
Kevin Longley Dr
Craig Ln
Red Oak Ln
Front St
W 5th St
Thomas Park Dr
Locust St
Mockingbird Ln
W 3rd St
Eastwood Cir
Briar Oaks Blvd
Fa
rms
tead D
r
Hennepin St
Eider Ln
Oak Ln
River Forest Dr
Meadow Oak Ave
Kampa Cir
Oa
k Ridge Cir
Mill Ct
River Ridge Ln
Oakview Ct
Dundas Cir
Kenneth Ln
Otter Creek Rd
Minnesota St
Eagle Cir
Crocus Ln
Meadow Oak Ln
Stoneridge Dr
Chestnut St
120 th St NE
Darrow Ave NE
Diamond Dr
Pebblebrook Dr
Widgeon Ln
Washington St
Bunker Cir
Hom estead Dr
Thomas Cir
Endico
tt Tr
Center Cir
Oakview Cir
Sandtrap Cir
Country Cir
Cheyenne Ct
Territoral Rd
Tanager Cir
Hillcrest Cir
Osprey Cir
Acorn Cir
Balboul Cir
S
wallow
Cir
Riv er side Cir
Meadow Oak Ct
Matthew Cir
East Oak Dr
St on eridg e Cir
Oakwood Dr
Meadow Oak Dr County Hwy 75
Hart Blvd
Minnesota St
Elm St
Wright St
90th St NE
Cedar St
Minnesota St
01
02
03
04
05
06
07
08
09
10
11
12
City of Monticello
Official Zoning Map:
1 inch = 2,500 feet
Date: 1/15/2020
Legend
BASE ZONING DISTRICTS
PUDs
Residential Districts
-- Low Residential Densities
A-O
R-A
R-1
Business Districts
B-1
B-2
B-3
B-4
CCD-- Medium Residential Densities
T-N
R-2
R-PUD
-- High Residential Densities
R-3
R-4
M-H
Mills Fleet Farm
Red Rooster
Swan River
Monticello High School
01
02
03
04
05
06
07
08
Spaeth Industrial Park
Camping World
Affordable Storage
Autumn RidgeOTHER
Water
Industrial Districts
IBC
I-1
I-2
Mississippi Wild, Scenic & Rec Overlay District
OVERLAY DISTRICTS
Performance Based Overlay District!
!!
!!
Shoreland District
Special Use Overlay District!
!!
!!
Freeway Bonus Sign District
09 Rivertown Suites
10 Monticello RV
11 Deephaven
12 Monticello Business
Center 8th
residentiAl develoPment by right within
the zoning code helps to ease planning and
construction by having clear, concise rules and
regulations so that residents and developers
understand expectations for the site. Good zoning
creates guidelines for this development while
maintaining flexibility balanced with community
health and aesthetically pleasing design.
Overall, the many districts in the City offer a range
of development opportunities for a wide variety
of housing types. There is likely opportunity to continue to thoughtfully integrate attached-units
or small multi-unit structures into some low density residential districts by allowing them as permitted uses, as well as to slowly increase density (and affordability) through further lot size reductions
(or lowering averages below the base to allow a
more natural range of housing choices).
One structure that is not explicitly listed in the
ordinance as an accessory use type are Accessory
Dwelling Units. These unit options may want to be called out as they are in the general provisions, providing guidance in development.
County Hwy 75
Chelsea Rd
State Hwy 25
85th St NE
9 0t h St N E
Linn St
Pine St
E 7th St
School Blvd
Riverview Dr
Cedar St
W River St
M
arvin R
d
Jason Ave NE
Dundas Rd
W Broadway St
H
art Blvd
Country Ln
Haug Ave NE
Elm St
W 4th St
Fenning Ave NE
Oakwook Dr
Mallard Ln
95th St NE
Fallon Ave NE
Edmonson Ave NE
Mississippi Dr
W 5th St
W 7th St
Sandberg Rd
Pelican Ln
Falcon Dr
Fenning Ave NE
Walnut St
Oak Ridge Dr N
Oriole Ln
Club View Rd
Broadway St
Hillcrest Rd
E River St
Hedman Ln
Mill Tra
il Ln
Fallon Ave NE
Wright StNew St
Marvin Elwood Road
Ramsey St
W 6th St
River Mill Dr
Wildwood Way
Hilltop Dr
Mill Run Rd
Oakv iew Ln
Farmstead Ave
Martin Dr
E 3rd St
E 3rd St
Red Rock Ln
Gillard Ave NE
Maple St
Fallon Dr
Willow St
Eastwood Ln
Graystone Ave
Marvin Elwood Rd
Fieldcrest Cir
Fairway Dr
Jason Ave NE
Vine St
Meado w Ln
Jerry Liefert Dr
Praire Road
Starling Dr
Palm St
Fallon Ave NE
Golf Course Rd
Fallon Ave NE
Kevin Longley Dr
Craig Ln
Red Oak Ln
Front St
W 5th St
Thomas Park Dr
Locust St
Mockingbird Ln
W 3rd St
Eastwood Cir
Briar Oaks Blvd
F
a
r
m
s
t
e
a
d D
r
Hennepin St
Eider Ln
Oak Ln
River Forest Dr
Meadow Oak Ave
Kampa Cir
O
a
k
R
id
ge Cir
Mill Ct
River Ridge Ln
Oakview Ct
Dundas Cir
Kenneth Ln
Otter Creek Rd
Minnesota St
Eagle Cir
Crocus Ln
Meadow O
ak Ln
Stoneridge Dr
Chestnut St
1 20 t h S t N E
Darrow Ave NE
Diamond Dr
Pebblebrook Dr
Widgeon Ln
Washington St
Bunker Cir
H o mestead D r
Thomas Cir
E
n
di
c
o
tt
T
r
Center Cir
Oakview Cir
Sandtrap Cir
Country Cir
Cheyenne Ct
Territoral R
d
Tanager Cir
Hillcrest Cir
Osprey Cir
Acorn Cir
Balboul Cir
S
w
all
o
w
Cir
Riv e r s id e C ir
Meadow Oak Ct
Matthew Cir
East Oak Dr
St on e r id g e Cir
Oakwood Dr
Meadow Oak Dr County H
wy 75
Hart Blvd
Minnesota St
Elm St
Wright St
90th St NE
Cedar St
Minnesota St
01
02
03
04
05
06
07
08
09
10
11
12
City of Monticello
Official Zoning Map:
1 inch = 2,500 feet
Date: 1/15/2020
Legend
BASE ZONING DISTRICTS
PUDs
Residential Districts
-- Low Residential Densities
A-O
R-A
R-1
Business Districts
B-1
B-2
B-3
B-4
CCD-- Medium Residential Densities
T-N
R-2
R-PUD
-- High Residential Densities
R-3
R-4
M-H
Mills Fleet Farm
Red Rooster
Swan River
Monticello High School
01
02
03
04
05
06
07
08
Spaeth Industrial Park
Camping World
Affordable Storage
Autumn RidgeOTHER
Water
Industrial Districts
IBC
I-1
I-2
Mississippi Wild, Scenic & Rec Overlay District
OVERLAY DISTRICTS
Performance Based Overlay District
!
!!
!!
Shoreland District
Special Use Overlay District
!
!!
!!
Freeway Bonus Sign District
09 Rivertown Suites
10 Monticello RV
11 Deephaven
12 Monticello Business
Center 8th
Data not updated in 2023 Housing Study
101
Local Impacts
101
Housing Needs and DemandCity of Monticello
102
unit deMAnd
Findings &
Recommendations
102
103
Unit Demand & Recommendations
notes on unit demAnd cAlculAtions
There are multiple factors that influence demand for new housing, making accurate projections of
future demand and unit production challenging. Our approach in the following pages includes both a
low estimate and a high estimate for new households, with the expectation that the actual growth of
households and units will be somewhere between those estimates.
One important variable is the tenure type split, meaning the distribution between rental and ownership
in new unit production. The City has recently been at about 70% owner occupancy and 30% rental
occupancy, and the level of owner occupancy has dropped a few points as compared to 3 years
earlier. We would expect to see this based on the production of more rental units (including some units
that could be owner-occupied, such as townhomes). This study is not establishing what the City wants in
new unit production, but instead is an attempt to project what the market is most likely to provide. Based
on recent permit history in Monticello and a shift toward more rental housing in much of the country, we
are projecting and assuming a 50/50 split between owner and rental housing in the next few years. If the
City takes actions to incentivize new owner occupant units, and/or declines to provide incentives for new
rental units, it could influence the tenure split outcome.
The rental demand projections suggest that the market requires few or no new rental units before 2028,
at least beyond those already built and those with zoning approvals, due to the recent strong production
of units. In the low estimate for household growth the City will have more units than it needs. In the higher
estimate there is demand for a modest 147 units after all approved units are built. However, it is important
to recognize that none of the new units recently constructed are targeted to lower income residents.
Meanwhile our projections highlight the demand for units affordable to housheholds below the median
household income. There is, we believe, still unmet demand for income-qualified units even if (or because)
there are new high-end units on the market.
Housing Needs and DemandCity of Monticello
104
owner demAnd - low estimAte
Growth projections for the City of Monticello indicate that current household growth rates will continue
- and may have the potential to increase. More commuters are looking to call Monticello home. More
area residents would like more options in the housing market. This demand analysis identifies a need to
increase the number of ownership units in the City - creating more opportunity for ownership that can
serve residents and newcomers alike.
There are two pages of demand analysis per housing tenure type (ownership and rental) - this is done to
illustrate the range of potential growth that the City may undergo. In general, low estimates are based on
1.7% household growth, and high estimates are based upon 2.9% household growth. Some assumptions
in each are the same - such as the need to bring vacancy back to healthy levels, and decrease the
rapid speed of cost increases on housing. Other estimates differ based on current best projections.
Final unit estimates are broken down by total projection of unit need from 2020 to 2028, projected unit
need subtracting out permitted units (units constructed or under construction), and projected unit need
subtracting out permitted units and units with land use and land division approval (anticipated units).
The low estimate should be used as a baseline - a minimum threshold for unit construction, not just plats.
New Construction Ownership Housing Demand from 2020 to 2028- Low Estimate
Demand from Household Growth Within the City
Household Growth from 2020 to 2028 644 additional households
New Household Ownership Rate 50%
Demand for New Construction 322 ownership units
Demand from Existing Resident Households
Current Owner Households 3,082 households
Current Owners Actively Looking for New Housing 10.0%
Increased Demand from Existing Residents 308 ownership units
Desire for New Construction 56%
Existing Resident Demand for New Construction 173 ownership units
Total Demand for New Construction Ownership Units = 495 units
Preference for SF-Detached 70%Preference for SF-Attached 30%
#347 units #148 units
Additional Need for Vacancy 54 units Additional Need for Vacancy 23 units
Total SF-Detached Need 401 units Total SF-Attached Need 171 units
Total Ownership Unit Need = 572 units
Total Need minus Permitted Units = 401 units
Total Need minus Permitted Units & Approved Units = 284 units
105
Unit Demand & Recommendations
New Construction Ownership Housing Demand from 2020 to 2028- High Estimate
Demand from Household Growth Within the City
Household Growth from 2020 to 2028 1,159 additional households
New Household Ownership Rate 50%
Demand for New Construction 579 ownership units
Demand from Existing Resident Households
Current Owner Households 3,082 households
Current Owners Actively Looking for New Housing 10.0%
Increased Demand from Existing Residents 308 ownership units
Desire for New Construction 56%
Existing Resident Demand for New Construction 173 ownership units
Total Demand for New Construction Ownership Units = 752 units
Preference for SF-Detached 70%Preference for SF-Attached 30%
#526 units #226 units
Additional Need for Vacancy 54 units Additional Need for Vacancy 23 units
Total SF-Detached Need 580 units Total SF-Attached Need 249 units
Total Ownership Unit Need = 829 units
Total Need minus Permitted Units = 658 units
Total Need minus Permitted Units & Approved Units = 541 units
owner demAnd - high estimAte
This high estimate should be used as a goal - a measure of units that could be constructed in the market
to provide additional housing choice - in location, type, and price point for buyers at any given point in
time. Community feedback through this process indicated the desire that there be multiple areas under
different stages of development at the same time, so that buyers who want to move to the City have
areas to choose in where to call home. This estimate would likely require multiple active subdivisions in
order to have the demand met and fully constructed by 2028.
Development interest and demand drive the housing market. Due to lending requirements and market
analyses needed for large-scale developer investment, if there is developer interest, there is also likely
demand.
Housing Needs and DemandCity of Monticello
106
ownershiP Findings
generAl conditions imPActing the housing
mArket:
• Average household size has remained stable
(p. 8)
• Families and home-office preferences
sustaining need for larger units (p. 8)
• Aging households are the fastest increasing
demographic since 2010 (p. 9)
• Aging households will be a significant portion
of households through 2050 (p. 12)
• Monticello residents have lower average
incomes compared to peer communities
(p. 13)
• Monticello residents have lower degrees of
educational attainment compared to the
County (p. 14)
• Common occupation groups in the City
indicate a need for affordable housing,
especially for entry-level positions (p. 16)
• Large shares of residents (48% as of 2020)
commute into metro counties daily for work.
Forty-eight percent of community survey
respondents indicated Twin Cities or a suburb
as place of employment (p. 18)
• Housing unit production has not kept pace
with new households moving to the County,
decreasing vacancy and increasing cost
(p. 19)
• Rising costs and interest rates have made the
development process more difficult (p. 97)
• Vacancy rates continue to be low in the City
and region, despite strong unit production
(p. 104)
whAt residents wAnt:
• Increase in zero-entry, patio, and rambler
style homes
• Detached, accessory, missing middle, and
townhome units
• Affordable starter-home development in
proximity to amenities
• Areas with different development options to
build in
mAjor ownershiP mArket Findings:
• Ownership units have made up 25.3% of
planned or constructed developments since
2020, well below historic building trends (p. 6)
• Though the majority of ownership housing is
single-family detached, there are also many
attached ownership units (p. 51)
• Owners make up a smaller portion of the
overall housing market than in most regional
communities (p. 53). Now at 70% of housing
market as of 2021.
• Though affordable homes exist in the market,
residents still identified the largest negative
aspect of the market as lack of affordability,
with more than half of survey respondents
indicating that affordable housing is
becoming harder to find (p. 58)
• There are generally more affordable
ownership opportunities in the city core,
though attached ownership units are
affordable in many areas (p. 60)
• Many households are remaining in their
housing longer than the 7-year national
average (p. 61)
• Since 2014, home costs have drastically
outpaced income growth with single-family
home value reducing affordability and
access for potential homebuyers (p. 62)
• The median single-family home value is now
greater than the median income affordability
limit (p. 62)
• The median home cost has more than
doubled since 2010 (p. 62)
• Among its peers, Monticello has the lowest-
cost entry point for a median starter home
(p. 64)
• The median starter home in the City is no
longer affordable to households earning 80%
AMI (p. 64)
• Monticello has the current highest Sales:List
price ratio among peer communities (p. 68)
• There is demand for ownership townhomes
(p. 70)
107
Unit Demand & Recommendations
ownershiP recommendAtions
continue to PlAt And service new suBdivisions
And develoPments
While construction activity has been ongoing,
residents and prospective residents have
indicated a need for more choices within the
market. In order to meet the housing construction
demand outlined above, it will likely require
multiple subdivisions in various stages of build-out
at any given point. The City should continue to
work with developers who are bringing forward
housing - at all price ranges - to serve needs of the
community.
PArtner with develoPers to deliver A mix oF
housing oPtions
While small-lot and large-lot new development is a
need, so are unit-type mixes within new subdivision
development. Integrating a mix of housing types
(attached/detached, 4-19 unit rental, etc.) within
subdivision plans allows more choices and options
in the housing market - ensuring that households of
all income can call new development home. This
can work to encourage more natural community
character, and help preserve the neighborhood
and small-town feel of the community through
personal connection.
there is A mArket For “luxury” housing - But
the mArket is limited
There are households in Monticello who can
afford $450,000+ new construction homes. We
have heard through this process that large-
lot availability and acreage are reasons those
seeking higher-cost homes choose to live in the
region. While there are certainly opportunities for
development in this price range, sales would likely
be targeted to residents from the larger region -
where incomes are higher and households have
more choice in this competitive market sector.
Assess requirements, minimum lot sizes, And
AverAged minimums
The City has the ability to review parking
requirements, minimum lot sizes, and averaged
minimums to further bring down new ownership
costs that can help maintain Monticello’s
affordability. Both small-lot and large-lot units have
been identified as needs. The City should actively
work to ensure developers take advantage of lot-
averaging that can offer a full scope of options for
potential homeowners in new development. This
step toward continued affordability will provide
options for both existing and prospective residents.
Actively Promote rePAir AssistAnce From
mhFA, usdA, And wccA
Wright County Community Action (WCCA)
provides assistance in homebuyer training,
rehabilitation, and other housing-financing issues
that can prove a stumbling block to lower-
income owners. WCCA is also prepared to assist
homeowners in securing financing through the
Minnesota Housing Finance Agency (MHFA) and
USDA Rural Development, and can guide owners
through complicated processes to improve their
homes.
keeP in mind Aging homeowners
The large share of senior persons projected
through 2050 is a national trend - and households
will need continued options. Whether promoting
accessibility programs to retrofit homes to age-
in-place, developing zoning flexibility to develop
Accessory Dwelling Units for caretakers, or tracking
the need for continued senior-living options in the
community, this demographic represents a large
share of specialized housing need moving toward
2050.
mAintAin develoPment Fees, Be helPFul
A comparison of development fees among
Monticello and its peers for ownerships and rental
development examples shows that Monticello
has a comparable level of fees to several peer
communities. These fees are based on real costs
and the City should not be apologetic nor should
the fee be reduced (unless as part of an incentive
package to encourage new units accessible
below the median household income). The City
SHOULD be proactive and helpful throughout
the development process, making every
reasonable effort to make the approval process
understandable and predictable for developers.
For residents who already live in the City, there are several key issues. Moderate-income residents who
previously would have been able to afford homeownership are now finding themselves being outpriced in
an appreciating and competitive market. There are areas of the core city with low home values and low
improvement ratios. And the average days on market is well below one month, indicating an unhealthy
market.
Housing Needs and DemandCity of Monticello
108
rentAl demAnd -
low estimAte
Within the rental market, projections are based on projected household growth, current rates of
household tenure for demographics likely to be seeking rental housing, and then focused based on rates
of affordability to current residents who rent within the housing market. Final unit estimates are broken
down by total projection of unit need from 2020 to 2028, projected unit need subtracting out permitted
units (units constructed or under construction), and projected unit need subtracting out permitted units
and units with land use and land division approval (anticipated units).
This demand analysis indicates a shift from ownership to renter markets, consistent with changes in rates of
tenure over the past decade. Demand-driven outcomes in recent years have led to a higher percentage
of rental units created compared to ownership units than an average year.
The low estimate for rental housing needed after subtracting out permitted and approved units indicates
that the demand estimate is close to being met though this should be used as a baseline and not used as
justification to preclude development.
New Construction Rental Housing Demand from 2020 to 2028 - Low Estimate
Demand from Household Growth Within the City
Household Growth from 2023 to 2028 644 additional households
New Household Renter Rate 50%
Demand from New Construction 322 rental units
Demand from Existing Resident Households
Current Renters in Market 1,444 households
Percent of Renters Seeking New Housing 22.6%
Increased Demand from Existing Renters 326 rental units
Renters with Preference for New Construction 20%
Existing Renter Demand for New Construction 65 rental units
Total Demand for New Construction Rental Units = 387 units
Affordable Units 50%Mid-Level Units 40%High Market Units 10%
New Affordable
Demand 194 units New Mid-Level
Demand 155 units New High Market
Demand 39 units
Additional Need for
Vacancy 49 units Additional Need for
Vacancy 39 units Additional Need for
Vacancy 10 units
Total Affordable Need 243 units Total Mid-Level Need 194 units Total High Market
Need 49 units
Total Rental Unit Need = 485 units
Total Need minus Permitted Units = 273 units
Total Need minus Permitted Units & Approved Units = 0 units (excess of 110 units)
109
Unit Demand & Recommendations
New Construction Rental Housing Demand from 2020 to 2028 - High Estimate
Demand from Household Growth Within the City
Household Growth from 2023 to 2028 1,159 additional households
New Household Renter Rate 50%
Demand from New Construction 579 rental units
Demand from Existing Resident Households
Current Renters in Market 1,444 households
Percent of Renters Seeking New Housing 22.6%
Increased Demand from Existing Renters 326 rental units
Renters with Preference for New Construction 20%
Existing Renter Demand for New Construction 65 rental units
Total Demand for New Construction Rental Units = 644 units
Affordable Units 50%Mid-Level Units 40%High Market Units 10%
New Affordable
Demand 322 units New Mid-Level
Demand 258 units New High Market
Demand 64 units
Additional Need for
Vacancy 49 units Additional Need for
Vacancy 39 units Additional Need for
Vacancy 10 units
Total Affordable Need 371 units Total Mid-Level Need 297 units Total High Market
Need 74 units
Total Rental Unit Need = 742 units
Total Need minus Permitted Units = 530 units
Total Need minus Permitted Units & Approved Units = 147 units
rentAl demAnd -
high estimAte
High estimates for rental demand assume continued, strong demand within the market. This suggests
continued demand for development types that have been coming forward in the City, and planning for
the trend to continue will allow the City to identify sites and areas through downtown and key corridors.
The City can balance market demand for more rental housing with small town character through smart
siting and design regulations.
This estimate of demand may come to be met if growth pressures increase further than current projections
indicate, and developments should be considered based on their own merits and demonstrated need on
an annual basis.
Housing Needs and DemandCity of Monticello
110
What do we
mean by
Affordable,
Mid-Level, and
High Market
Rents?
110
111
Unit Demand & Recommendations
AFFordABility - what a household can spend on housing cost - is relative to each individual
household. Higher-income households can afford more within the market, meaning that there
are more options that would be within their spending limit, whether they spend 10% or 30% of their
income toward housing cost. Lower-income households have fewer choices in the market due to
similar fixed-costs, but less units that generally rent at a level that would fall within a comfortable
limit. In addition to having less units available, they sometimes directly compete with higher-income
households who are “spending-down” in the market, occupying housing units that are especially
affordable.
The Affordable Housing rental production numbers outlined above are based on resident incomes
by tenure - that is the percent of renter households who rent at each income level, before deciding
to transition to the ownership market. Affordable Housing targets for these recommendations are
units priced at an affordability level of 30% - 50% of the area median income for the 13-county
metro. This is used to maintain consistency with common funding categories, and are adjusted to
match household and bedroom size. Fifty percent of all Monticello renter households fall into this
affordability range.
0 1 2 3 4
Affordable
Housing
Ideal
Monthly
Rent
$656 $703 $749 $843 $937
Maximum
Monthly
Rent
$1,093 $1,171 $1,249 $1,405 $1,561
Number of Bedrooms
0 1 2 3 4
Mid-Level
Housing
Ideal
Monthly
Rent
$1,093 $1,171 $1,249 $1,405 $1,561
Maximum
Monthly
Rent
$1,749 $1,874 $1,998 $2,248 $2,498
Number of Bedrooms
0 1 2 3 4
High
Market
Housing
Ideal
Monthly
Rent
$1,749 $1,874 $1,998 $2,248 $2,498
Maximum
Monthly
Rent
-----
Number of Bedrooms
Mid-Level housing indicates prices that would be affordable to a household earning between 50%
and 80% of the median income for the 13-county metro. They are adjusted to match household/
family size, and represent consistency with MHFA and HUD guidelines. Fourty percent of all
Monticello renter households are within this affordability range.
High Market Housing is the last category for recommended cost of new units - and does not
have an upper maximum. While households do rent within this category, there is a transition to
homeownership that is consistent with both increasing incomes and geographic location of the City.
Data and community input indicate that households tend to move to Monticello for affordability
and accessibility, and the same holds true for high-income earners. There is a larger share of housing
that is more affordable to these households than in the larger metro, even for households currently
living in the City that could move if they choose.
Housing Needs and DemandCity of Monticello
112
rentAl Findings
generAl conditions imPActing the housing
mArket:
• Average household size has remained
stable(p. 8)
• Families and home-office preferences
sustaining need for larger units (p. 8)
• Aging households are the fastest increasing
demographic since 2010 (p. 9)
• Aging households will be a significant portion
of households through 2050 (p. 12)
• Monticello residents have lower average
incomes compared to peer communities
(p. 11)
• Monticello residents have lower degrees of
educational attainment compared to the
County (p. 14)
• Common occupation groups in the City
indicate a need for affordable housing,
especially for entry-level positions (p. 16)
• Large shares of residents (48% as of 2020)
commute into metro counties daily for work.
Forty-eight percent of community survey
respondents indicated Twin Cities or a suburb
as place of employment (p. 17)
• Housing unit production has not kept pace
with new households moving to the County,
decreasing vacancy and increasing cost
(p. 19)
• Rising costs and interest rates have made the
development process more difficult (p. 96)
• Vacancy rates continue to be low in the City
and region, despite strong unit production
(p. 108)
whAt residents wAnt:
• Housing for young adults and early-career
households
• Affordable housing for those who work in the
community, and higher-amenity options to
move up to as income increases
• Larger units for families and/or spaces to
have an office
• Ranges of housing types (structures/sizes) to
provide a range of options
mAjor rentAl mArket Findings:
• Rental units have made up 52.3% of planned
or constructed developments since 2020, well
above historic building trends (p. 6)
• There is good geographic distribution of
rental units throughout the City (p. 28)
• Renter households have been increasing
slightly as a total percentage of City
households since 2010, currently at 30% as of
2021 (p. 31)
• Lower-income households are much more
likely to be renters (p. 31)
• Rental housing in the City is easily accessible
within the region, with good access and
amenities (p. 32)
• Rates of cost burden is much higher for renter
than owner households (p. 33)
• There are significant housing gaps at both
the top and bottom of the rental housing
market (low- and high-cost) (p. 34)
• Most renters that are housing cost burdened
pay more than 50% of their income toward
housing costs (p. 35)
• There are very few rental options in 2-4 unit
structures in the City (p. 38)
• Median rent is affordable to the median
renter, though data does not account for
new construction unit costs (p. 39)
• Monthly rental cost for a 2-bedroom unit has
gone up 20% since 2020 (p. 40)
• New units are needed to bring the vacancy
rate back to healthy and balanced levels
(p. 41)
• 3+ bedroom units will be needed at all price
points for preference towards larger units
(p. 42)
• Fiber internet is a key rental amenity that
is attractive to households throughout the
region (p. 43)
• Housing subsidies (both local and state/
federal) will be needed to offset increasing
construction costs and ensure lower-income
households can afford rental costs (p. 47)
113
Unit Demand & Recommendations
rentAl recommendAtions
tAke AdvAntAge oF oPPortunities For tAx
credit & suBsidized develoPment
Though referred to as “affordable housing”, tax
credit developments offer new construction at
rents that fit within the limits and demand of the
community. Local employers are reporting that
their workers need a middle-option, often fitting
inside income categories for these units. These
developments that offer opportunity to increase
density in key areas, and can also be utilized for
mixed-use developments that provide amenities in
central, walkable areas. The City can also directly
encourage more affordable rental costs through
programs such as Tax Increment Financing.
there is A mArket For “luxury” housing - But
the mArket is limited
Some households with the financial means to
purchase a home still prefer to rent for various
reasons, and these renters will pay for increased
amenities. The market has responded with plenty
of new, market-rate units in the past few years,
including some in the “luxury” category. Demand
for even more such units will grow with population,
but there is not a backlog of unmet demand for
such units apparent in the current market.
continue to Focus on universAl design in
centrAl AreAs
As households continue to age, and many
wanting to age in the community, providing a
range of options that have accessibility features
and follow universal design will promote healthy
neighborhoods. This is needed throughout the
City, as well as in key walkable central areas that
increase access to amenities. Many homeowners
who downsize, as well as those with differing levels
of ability, live in private market units and prefer
walkable areas with access to amenities.
encourAge rehABilitAtion, redeveloPment, And
reinvestment
Maintaining housing affordability across a range
of incomes is vital for community health - and is
one of the reasons that some households choose
to live in Monticello in the first place. However,
aging housing stock requires upkeep in order to
maintain desirability. Many rehabilitation programs
offer deferred-loan assistance to landlords of small
properties (such as MHFA’s Rural Rehabilitation
Deferred Loan program). These incentivized loans
often come with income restrictions. Though not
an immediate solution, increased investment
in new unit development in key areas (e.g.
downtown), and new unit development in general
can work to relax vacancy in the market, allowing
households to select units that meet their balance
of affordability & amenity - and structures with
rehab needs will require maintenance investment
to maintain market share.
mAintAin A mix oF Bedroom sizes in new
develoPment
Preference towards larger unit size is evident
in both ownership and rental developments.
Important to this growth is ensuring households
have access to a variety of both new and older
stock options that meet their need for family size -
and perhaps for home offices as telecommuting
becomes more common. In practice, this
means incorporating 3-bedroom units as a
significant portion of the rental market, whether in
townhome, detached, or multi-unit construction.
Encouraging larger unit construction balanced
with small unit construction ensures needs of all
household types are served through new units.
encourAge missing middle housing
Structures with 2-19 units fill a gap that exists in
the market, providing more options for residents,
and reduced construction costs for development
compared to single-unit detached structures.
Unit design fits well among both existing and new
structures, and will fill in missing unit types.
Households in the rental market, as well as local housing experts, have identified a need for middle-cost
housing options in the City. Due to a large share of older rental housing stock, there are more affordable
options than in other areas of the Metro. However, incomes of many local residents are also below high-
market housing cost. Employers are seeing that their growth and employment base needs a middle-
ground in the rental market that offers both amenities and reduced unit pricing.
Housing Needs and DemandCity of Monticello
114
Senior households live in homes in both the rental and ownership markets, but as they continue
to age, many need more specialized care or prefer alternate options. Nationally, HUD reports
that 93% of medicare-enrollees age 65 and older are already aging in place. This vast majority
of the market is remaining in their current housing - staying in non-age restricted housing
until life events necessitate a move. Once households do move, many rental options offer
combinations of active living, independent living, assisted living, and memory care within
the same campus. Within the market, there are several options to help older households find
options that work for them:
Ensuring a Variety of Options in the Private Market
Easing access to Accessory Dwelling Unit construction, whether internal or external to
the existing primary residence, helps aging households remain in their home. Some older
households design the unit with accessibility standards in mind and look to downsize into it
themselves, while other households plan on it as a space for family or a caretaker who can
assist them with daily tasks.
Ensuring there is access to or developing non-age restricted smaller apartments in more central
locations is another method of ensuring older household options in the market. This allows
households to live in new construction that has a mix of access and privacy, while still having
friends and other households close by. One more option is small lot size development, either in
central areas or cottage court communities. These allow both rental and ownership options as
households continue to age - as long as the housing is built with aging and universal design in
mind (such as patio homes).
Active Adult Housing
Active Adult Communities are specially-designed developments with accommodations for
aging households in mind. They provide upkeep-free housing, easing maintenance burden.
They also often provide a sense of community for others who prefer neighbors their own age, as
opposed to smaller and accessible unit options in market rentals. And, they can offer a variety
of tenure choices, with many allowing residents to own or lease their housing.
Independent Living
Independent Living is designed for households who can - and want to - accomplish the
majority of daily tasks on their own, but need assistance from time to time. These facilities often
are inclusive of food and medical care, as well as other potential on-site amenities such as
cleaning, laundry, and general housekeeping. These housing units are operated most similarly
to a rental unit - and as amenities go above and beyond typical housing cost, are not subject
to the typical 30% affordability standard.
Assisted Living
Assisted Living is designed to make it easy for residents who need assistance with everyday
activities in accomplishing tasks that they would not be able to do in their own homes. This is
often provided through scheduled, regular support that runs a spectrum from cooking and
cleaning to in-unit medical visits, transportation, and medication management.
Aging households
115
Unit Demand & Recommendations
Market Rate Active Adult Demand
2023 2028
Number of Households with Qualifying Incomes 418 613
Potentially Qualifying Households with Home Sale Equity 145 147
Base Demand 563 760
Unit Type Preference 7%7%
Existing City Resident Demand 39 53
New City Resident Demand 26 35
Total Unit Need 65 units 88 units
Total Unit Need minus Recent Permitted Units & Approved Units 52 units
Subsidized Independent Living Demand
2023 2028
Number of Households with Qualifying Incomes 562 617
Base Demand 562 617
Unit Type Preference 15%15%
Existing City Resident Demand 84 93
New City Resident Demand 25 28
Total Unit Need 110 units 120 units
Total Unit Need minus Recent Permitted Units & Approved Units 55 units
senior unit tyPe demAnd
Demand for market rate, active living senior housing comes from those household that prefer this
type of unit and can afford it, either because they have sufficient current income or because
they have sufficient savings, most often in the form of home sale equity. All households in this
demand category, both current and projected, have at least one household member above
the age of 55. Many active adult housing communities are age-restricted and become available
once a household member reaches the limit (typically 55), while other are not restricted - solely
marketing themselves as active adult communities to ensure inclusivity.
Total unit need is broken down into two estimates including total estimated need for current
demand and demand by 2028 (not including units that already exist within the market) and total
unit need subtracting out permitted units (units constructed or under construction since 2020) and
units with land use and land division approval (anticipated units).
Subsidized independent living refers to income-restricted independent living developments.
This offers opportunity for income-limited and fixed-income households to have access to those
services they require as they continue to age. Demand is calculated by measure of fixed- and
income-restricted households without the potential for home sale equity. This is then adjusted to
the average percentage of households who prefer or need to live in this style housing in 55+ age
categories.
Total unit need is broken down into two estimates including total estimated need for current
demand and demand by 2028 (not including units that already exist within the market) and total
unit need subtracting out permitted units (units constructed or under construction since 2020) and
units with land use and land division approval (anticipated units).
Active Adult Housing
Subsidized Independent Living
Housing Needs and DemandCity of Monticello
116
Market Rate Independent Living Demand
2023 2028
Number of Households with Qualifying Incomes 418 473
Potentially Qualifying Households with Home Sale Equity 145 155
Base Demand 563 682
Unit Type Preference 15%15%
Existing City Resident Demand 84 94
New City Resident Demand 34 38
Total Unit Demand 118 units 132 units
Total Unit Need minus Recent Permitted Units & Approved Units 45 units
Market Rate Assisted Living Demand
2023 2028
Persons in Need with Potential Home Sale Equity 205 276
Percent of Households with Qualifying Incomes 43%43%
Number of Income Qualified Households 232 232
Base Demand 319 351
Demand from Current Single Person Households 41 45
Demand from Current Two Person Households 278 306
Unit Type Preference/Need 40%40%
Existing City Resident Demand 128 140
New City Resident Demand 51 56
Total Unit Demand 179 units 196 units
Total Unit Need minus Recent Permitted Units & Approved Units 129 units
senior unit tyPe demAnd
Market Rate independent living refers to non-income restricted independent living developments.
This offers opportunity for higher-income senior households and those with potential home sale
equity to have access to required services as they continue to age.
Total unit need is broken down into two estimates including total estimated need for current
demand and demand by 2028 (not including units that already exist within the market) and total
unit need subtracting out permitted units (units constructed or under construction since 2020) and
units with land use and land division approval (anticipated units).
Market Rate assisted living refers to assisted living development for households with a higher-
income or access to potential home sale equity. Demand is calculated by measure of income-
qualified households, as well as potentially qualifying household with access to home sale equity.
This is then adjusted based on the local number of single-person senior households in Monticello,
and filtered by the estimated percent of households who can continue in-home care as opposed
to assisted living.
Total unit need is broken down into two estimates including total estimated need for current
demand and demand by 2028 (not including units that already exist within the market) and total
unit need subtracting out permitted units (units constructed or under construction since 2020) and
units with land use and land division approval (anticipated units).
Market Rate Independent Living
Market Rate Assisted Living