When pitted against other cities in southwestern Minnesota in terms of need for rental housing, the condition of current housing, median home sales values and availability of subdivision lots, Jackson holds its own.
Findings of a new regional housing study show that while the city does not lay claim to having the most available rental housing, best condition of current housing, lowest — or highest — median home sales values or most available subdivision lots when compared to the cities of Pipestone, Redwood Falls and Worthington, in many cases, Jackson is not far off.
The study, titled “Southwest Minnesota Comprehensive Housing Study,” is an analysis of the overall housing needs for the four cities. Commissioned by the Southwest Minnesota Housing Partnership and conducted by Community Partners Research of Faribault, the study uses demographic data and analyses of current housing stocks and inventories to determine gaps or unmet housing needs, predict future housing trends and provide a market analysis for housing development.
Results and findings of the study were recently presented to the Jackson Economic Development Authority.
Rental housing
Researchers recommended Jackson construct between 50 and 60 new rental housing options within the next five years. While this figure is double what the research team recommended for the city of Pipestone, it is slightly less than the recommendation for Redwood Falls and less than half the recommendation for Worthington, which researchers said should add upwards of 200 new units by 2014.
Breaking Jackson’s recommendation down, researchers suggested the city add between 28 and 32 general occupancy market rate units, 10 to 12 subsidized or tax-credit units and 12 to 16 student housing units. Researchers did recognize the impending construction of the new Ashley Estates apartment complex near downtown Jackson and said the addition of those rental units to the local marketplace will essentially address the need for general occupancy market rate units.
Looking closer at the breakdowns, while Jackson is the only of the four cities to have a need for student housing, researchers found it was also the only of the four to have an adequate supply of senior housing.
The study based rental recommendations on “projected household growth, replacement of rental housing that will be converted or demolished and pent-up demand for some types of rental housing,” researchers said.
Housing condition
When compared to Redwood Falls and Worthington, Jackson has the highest percentage of houses in need of “minor repair” and second highest percentage of houses in need of “major repair.” Jackson is also second of the three in the percentage of houses researchers considered “sound” and those researchers considered “dilapidated.”
“Housing rehabilitation is a very important issue for all four cities,” the researchers stated. “In all of the communities, the percentage of older housing units is above average.”
In terms of raw numbers, researchers inspected 263 housing units located in two of Jackson’s “oldest” neighborhoods. Of those 263, 74 (28 percent) were considered sound, 121 (46 percent) were considered in need of minor repair, 61 (23 percent) were considered in need of major repair and seven (3 percent) were termed “dilapidated,” or too deteriorated to rehabilitate.
Redwood Falls had the highest percentage of houses in sound condition and those requiring only minor repair; Worthington had the highest percentage of houses requiring major repair and those considered dilapidated.
A housing survey was not conducted for Pipestone, though a visual survey conducted for the purposes of the study revealed a “substantial number of substandard homes … in Pipestone’s older neighborhoods.”
Researchers termed the number of substandard houses in Jackson and the other studied cities “significant” and recommended the continued utilization of all resources available for rehabilitation.
“With the high cost of new construction and the lack of new construction that is being undertaken in the cities, it is imperative that the existing housing stock is maintained, as it is the only home-ownership alternative for low- and moderate-income households,” the researchers stated. “Also, one of the greatest assets for each city is its affordable housing stock. To continue to attract households to these cities, the affordable existing housing stock must be preserved.”
Researchers also suggested the cities take an “aggressive approach” to demolishing dilapidated structures, adding, “The cities are enhanced when blighted and dilapidated structures are removed. Also, some of the cleared lots can be utilized for the construction of new, affordable housing units.”
Median values
The most recent median home sale value in Jackson ranks second lowest among the four cities studied.
Pipestone ranks lowest with a median sales value of $61,750. Jackson is second lowest at $63,500, followed by Worthington at $75,000 and Redwood Falls at $93,250.
Despite the $31,500 difference between the high and the low, researchers commended all four cities for having an abundance of “moderately priced” homes: “We also believe that the moderately priced homes in the four cities provide an excellent opportunity to promote home ownership as the majority of the homes are affordable for most households.”
Researchers recommended the cities improve the condition and quality of the existing single-family housing stock, continue to promote home ownership and affordable new housing construction and assist emerging markets with home ownership.
Lot availability
In terms of available subdivision lots, researchers said Jackson’s current supply is not adequate.
“We are projecting that the city of Jackson should have 15 to 20 lots available in its lot inventory,” they wrote. “Currently, the city of Jackson has approximately 14 lots.”
However, researchers did acknowledge the second phase of the Sunset View Subdivision on Jackson’s west edge would add 22 lots: “This development will address projected demand over the next several years.”
Researchers found both Pipestone and Worthington had an adequate number of lots available, but faulted Redwood Falls for being about 30 lots short over the next five years.
Local reaction
All in all, said Sue Pirsig, Jackson’s economic development coordinator, the city fared “pretty darn good” in the study in terms of rental housing, the condition of current housing, median home sales values and availability of subdivision lots.
“We have some work to do, according to the study,” she said, “but when you look at how we compared, I thought we fared pretty well.”
Click here to read the overview of the multi-county housing study.
Click here to read the housing study's Jackson analysis.
