The new housing and business development in Redwood Falls is something the community is excited about. Additional housing is much needed in Redwood Falls and the surrounding areas. Lately, we’ve received quite a few questions about the new and existing types of housing that are available in our area. To help clarify, these are the different types of housing that are common in many communities.
Market Rate Housing
Market rate housing means that a single family house will be sold for whatever price is appropriate in the real estate market at that time. Similarly, market rate apartments will be rented for whatever the going rental rate is as well. In general, market rate housing will be the most expensive type of housing because the buyer or renter will pay full price—there won’t be subsidies available.
Workforce Housing
The second type of housing we often see is workforce housing. This type of housing is usually found in smaller towns or cities, especially in more rural areas of Minnesota. Some type of funding is often provided for builders, whether they’re building homes or apartments. Generally, communities that receive this type of funding tend to have a growing job market and a need for workers, who will then need somewhere to live. Because of those funding programs, workforce housing tends to be a bit less expensive to rent or buy than market rate housing.
Low Income or Subsidized Housing
Affordable homes and apartments can be hard to come by. Low income, or subsidized, housing often refers to apartments or rental units that are rented to individuals who wouldn’t be able to afford market rate housing at their income level. Usually, someone needs to qualify for low income housing—typically by earning below a certain threshold of annual income. This type of housing will be the least expensive option available in a community because it is subsidized.
The Housing Development in Redwood Falls
Though much progress has been made, there is still quite a bit of work to be done within the housing development here in Redwood Falls. If you have questions about the type of housing that is being planned or other housing options in the area, please contact us.