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FAIRMONT - Fairmont Economic Development Authority (FEDA) Executive Director Ned Koppen presented the results of a new housing study by Bowen National Research completed for the city at the Housing and Redevelopment Authority's (HRA) meeting on Monday.
Overall, the study found a five-year housing gap of 434 total units in demand. This includes 264 rental units and 170 for-sale units.
The study also examined affordability and the largest gaps between what people demand and what they can pay. For renters, 115 of the 264 units are being demanded by those who need an apartment under $1,225 a month, as they make $49,000 or less. While there is a need for rental spaces for more affluent people looking to move to town, that need was identified at only 28 units.
This factor is more prevalent in the housing sector, as 90 of the 170 needed for-sale units are looking for a home from $261,000 to above $392,000
"For 75 plus, that age group is projected to grow 15 percent," Koppen said. "That’s going to be the largest sector of growth we’re going to have."
Other factors found include 1,324 households are cost-burdened with their current housing, paying more than 30 percent of their income on housing, while 258 of those are paying more than 50 percent of their income on housing, of all the multi-family units, only nine were currently unoccupied, making a 96.5 percent occupancy rate, and only 43 homes were available by May of 2026, for a 1.4 percent availability rate.
"That’s just such a narrow thing," Koppen said. "That means somebody looking to make a housing change, or somebody new to our community coming in, they just have very little to choose from."
In the sector of households aged 75 and up increasing by 15 percent in the next five years, the study also found that, of the eight senior care facilities surveyed, they were 88.1 percent occupied overall, and independent living across all of them was fully occupied.
As for where new development could be located, the study identified 20 sites that could be used for housing development. They also found 124 blighted residential properties, which Koppen said could range from needing renovations to having to be completely demolished. City Council Representative Randy Lubenow said this is something the city is looking at.
"I do know in the city budget for 2027, we’re looking at hiring two more part-time people to deal with blighted properties," he said. "Right now we have one that’s overwhelmed because there’s a lot of properties to look at, and the process is frustrating sometimes. You can ask them to clean up their property, and if they don’t want to, then you can take them a legal route. Usually, it’s just a $100 fine, and then you start the process all over again."
Koppen said this issue is about enforcement and process, and not necessarily having stricter codes on the books.
"That is something that myself and the community development team are working on right now," he said.
Koppen said this report will go to city council and other stakeholders in the community at the next available opportunity for Bowen National Research to present. He also left the door open for HRA members to attend this meeting when it happens.
In other news:
--A tax levy of $233,245 for the HRA was approved. This is split between payroll and operating budget, funds toward community non-profit organizations, and new construction funding of non-Housing and Urban Development projects.
-- A date was settled for the Fairmont HRA to visit the Albert Lea Townhomes, which Diede said resembles what they are interested in building in Fairmont in the future.