NORTH MINNEAPOLIS: INTRODUCTION

White

Black/African American

American Indian

Asian

Hawaiian/Pacific Islander

Other

Two or More Races

Population Percent Total 42,693 100.0% White 10,446 24.5% African American 21,231 49.7% American Indian 686 1.6% Asian 5,928 13.8% Hawaiian/Pacific Islander 18 0.1% Other 1,826 4.3% Two or More Races 2,558 6.0%

This report is part of a larger collaborative between the Local Initiatives Support Corporation (LISC) and the Center for Urban and Regional Affairs (CURA) that addresses regional disparities in an effort to inform community development and revitalization efforts in the Twin Cities. This report looks specifically at the Building Sustainable Communities (BSC) study area found in North Minneapolis. With a focus on employment and economic development, it addresses a series of indicators of economic health and household capacity in an attempt to illuminate discrepancies at multiple scales of analysis. Data on North Minneapolis is compared against standards at the city and regional scale in an attempt to provide a place-based assessment of current development.

NORTH MINNEAPOLIS STUDY AREA

The study area used in this assessment utilized as a foundation the Building

Sustainable Communities boundaries and determined a selection of best-�t census

tracts from these boundaries. The map to the right provides

a visual of how these two areas correspond to one another

TWIN CITIES POVERTY RATE BY CENSUS TRACT

DEMOGRAPHICS

Data found in later sections of this report will use modi�ed versions of the demographic population categories found here. Due to its small sample size, values for the ‘Hawaiian/Paci�c Islander ’category will not be shown, while values for the ‘American Indian’ category will occasionally be omitted. Additionally, due to de�nitional heterogeniety, the ‘Other’ and ‘Two or More Races’ categories will also not be shown. Finally, the Hispanic population and the Non-Hispanic White populations will be supplemented to provide metrics with a greater capacity to impact policy decisions.

Data for the report comes from the Decennial Census and American Community Survey estimates

North Minneapolis Accounts for This Percentage of the Metro’s Asian Population: 31.3%

North Minneapolis Accounts for This Percentage of the Metro’s Asian Population Below Poverty:

43.9%

The Current Poverty Rate for The African American Population of North Minneapolis is:

42.0%

The Current Poverty Rate for the White (Non-Hispanic) Population of the Metropolitan Region is:

6.2%

Reducing the North Mpls African American Poverty Rate to Match the Metropolitan White Poverty Rate will Require This Many People to Move Out of Poverty:

7,116

Minneapolis Metropolitan Region

Total 9,680 12,480 White (Non-Hispanic) 196 803

African American 5,785 7,116 American Indian 204 231 Asian 1,907 2,331 Hispanic 985 1,218

0%

10%

20%

30%

40%

50%

60%

70%

North Minneapolis

Minneapolis

Metropolitan Region

Percent of Mpls

Population Percent of Mpls

Poverty (by Race) Total 10.9% 18.1% White (Non-Hispanic) 4.0% 4.6% African American 30.3% 28.1% American Indian 6.8% 8.8%

Asian 31.3% 43.9% Hispanic 9.2% 11.5%

NORTH MINNEAPOLIS: POVERTY

GRAPH OF POVERTY RATE BY RACEcomparison of North Minneapolis to the larger City and Metropolitan Area

TABLE OF POVERTY RATE BY RACEnumber of individuals below the poverty line and the percentage of the population below the poverty line

The table above provides metrics on the number of people who would need to move out of poverty in order to match the White (Non-Hispanic) poverty rate for both the City and the Metropolitan Region. These values provide insight into areas of emphasis as seen by racialgroup

The table above provides metrics on the percentage of individuals below poverty for each race that North Minneapolis accounts for in the City’s population below poverty. This value is compared to the overall population by race that North Minneapolis accounts for in the City’s population to provide statistics on the relative concentration of poverty in North Minneapolis by racial group.

• Poverty in North Minneapolis is distributed unevenly by race. While the White (Non-Hispanic) poverty rate is 15.1%, all other racial categories face rates at least 25 percentage points higher.

• The Poverty Rate also follows a pattern of spatial concentration in North Minneapolis. The Poverty Rate for North Minneapolis is significantly higher (36%) than the rate for the City (21.7%) or the Metropolitan Area (10.5%).

• This disparity is further pronounced when examining spatial variations by race.

For example, the African American poverty rate in North Minneapolis (42.0%) is 35.8% higher than the White (Non-Hispanic) poverty rate in the Metropolitan Area as a whole.

GRAPH OF POVERTY RATE BY RACE OVER TIMEcomparison of trends for years 2000, 2009, and 2012

The graph to the left shows illustrates the change in poverty rate over time, with values for the years 2000, 2009, and 2012. Data for the Total, White (Non-Hispanic), African American, Asian, and Hispanic populations in North Minneapolis are provided, as well as the White (Non-Hispanic) rate for the City and Metropolitan Region as comparison metrics. The table below shows total values for each geographicarea.

2000 2009 2012 North Minneapolis 29.7% 37.2% 36.1% Minneapolis 16.9% 21.5% 21.7% Metropolitan Region 6.9% 9.2% 10.5%

• The poverty rate for North Minneapolis has been consistently higher than the City and Region rates • North Minneapolis faced a more rapid increase in poverty between 2000 and 2009 than the City or the Region • Additionally, North Minneapolis saw a decrease in its poverty rate between 2009 and 2012, as opposed to the slight

increase seen by the City and Region • The poverty rate gap increased by 1.6% between North Minneapolis and the City, and by 2.8% between North

Minneapolis and the Region between 2000 and 2012

North Minneapolis Minneapolis Metropolitan Region Individuals Below

Poverty Line Percent Below Poverty Line

Individuals Below Poverty Line

Percent Below Poverty Line

Individuals Below Poverty Line

Percent Below Poverty Line

Total 15,071 36.6% 83,366 22.5% 299,741 10.6% Non-Hispanic White 1,364 15.1% 29,401 12.9% 133,045 6.2% African American 8,348 42.0% 29,735 45.4% 78,176 33.9%

American Indian 256 63.4% 2,895 48.9% 5,536 32.4%

Asian 2,723 43.0% 6,204 30.7% 31,481 17.2% Hispanic 1,433 41.3% 12,421 33.0% 38,546 23.3%

NORTH MINNEAPOLIS: UNEMPLOYMENT

North Minneapolis Minneapolis Metropolitan

Region

Total

In Work Force 18,831 231,216 1,632,782 Number Employed 14,866 209,346 1,513,652 Number Unemployed 3,965 21,870 119,130

Percent Unemployed 21.1% 9.5% 7.3%

White (Non-Hispanic)

In Work Force 5,661 163,337 1,310,636 Number Employed 5,068 152,998 1,232,181 Number Unemployed 593 10,339 78,455

Percent Unemployed 10.5% 6.3% 6.0%

African American

In Work Force 8,640 30,506 113,890 Number Employed 6,144 23,518 94,167 Number Unemployed 2,496 6,988 19,723

Percent Unemployed 28.9% 22.9% 17.3%

American Indian

In Work Force 98 2,441 8,350 Number Employed 98 1,824 6,886 Number Unemployed 0 617 1,464

Percent Unemployed 0.0% 25.3% 17.5%

Asian

In Work Force 2,309 10,816 92,906 Number Employed 1,827 9,487 84,894 Number Unemployed 482 1,329 8,012

Percent Unemployed 20.9% 12.3% 8.6%

Hispanic

In Work Force 1,461 18,981 82,334 Number Employed 1,263 17,226 74,478 Number Unemployed 198 1,755 7,856

Percent Unemployed 13.6% 9.3% 9.5%

Percent of Mpls Labor Force

Percent of Mpls Unemployed (by

Race)

Total 8.1% 18.1% White (Non-Hispanic) 3.5% 5.7% African American 28.3% 35.7% American Indian 4.0% 0.0% Asian 21.3% 36.3% Hispanic 7.7% 11.3%

0%

5%

10%

15%

20%

25%

30%

North Minneapolis

Minneapolis

Metropolitan Region

GRAPH OF UNEMPLOYMENT RATE BY RACEcomparison of North Minneapolis to the larger City and Metropolitan Area

TABLE OF UNEMPLOYMENT RATE BY RACEnumber of individuals in the workforce, separated by employment status

GRAPH OF UNEMPLOYMENT RATE BY RACE OVER TIMEcomparison of trends for years 2000, 2009, and 2012

The table above provides metrics on the percentage of unemployed individuals for each race that North Minneapolis accounts for in the City’s unemployed population. This value is compared to the overall population by race that North Minneapolis accounts for in the City’s population to provide statistics on the relative concentration of unemployment in North Minneapolis by racial group.

The table above provides metrics on the number of people who would need toprocure employment in order to match the White (Non-Hispanic) employmentrate for both the City and the Metropolitan Region. These values provide insightinto areas of emphasis by racial group

• Racial disparities in unemployment exist in North Minneapolis. While the White (Non-Hispanic) and Hispanic unemployment rates are relatively low (10.5% and 13.6% respectively), the African American and Asian unemployment rates roughly double these

rates (28.9% and 20.9% respectively)

• The unemployment rate in North Minneapolis (21.1%) is higher than both the City (9.5%) and the Metropolitan Region (7.3%) as a whole. This unequal spatial distribution of employment is further exacerbated when accounting for racial categories.

The graph to the left shows illustrates the change in unemployment rate over time, with values for the years 2000, 2009, and 2012. Data for the Total, White (Non-Hispanic), African American, Asian, and Hispanic populations in North Minneapolis are provided, as well as the White (Non-Hispanic) rate for the City and Metropolitan Region as comparison metrics. The table to the right shows unemployment rates for each geographic area.

2000 2009 2012 North Minneapolis 13.0% 18.0% 21.1% Minneapolis 5.8% 8.2% 9.5% Metropolitan Region 3.5% 6.0% 7.3%

• The unemployment rate for North Minneapolis has been consistently higher than the City or Regional unemployment rate • Although facing a higher unemployment rate than Regional levels, North Minneapolis’ encountered a slower rate of

increase in unemployment (62.3%) than the Metropolitan Region (108%) between 2000 and 2012 • However, the unemployment rate gap between North Minneapolis and the City has increased by 4.4% and the gap

between North Minneapolis and the Region has increased by 4.3%

North Minneapolis Accounts for This Percentage of the City's Population: 8.1%

North Minneapolis Accounts for This Percentage of the City's Unemployed Population:

18.1%

Minneapolis Metropolitan Region

Total 2,779 2,835 White (Non-Hispanic) 282 300

African American 1,952 1,978

American Indian 0 0 Asian 337 343 Hispanic 106 110

The Current Unemployment Rate for the African American Population in North Minneapolis is:

28.9%

The Current Unemployment Rate for the White (Non-Hispanic) Population of the City of Minneapolis is:

6.3%

Reducing the North Mpls African American Poverty Rate to Match the MinneapolisWhite Poverty Rate will Require This Many People to Move Out of Poverty:

1,952

NORTH MINNEAPOLIS: INCOME

North Minneapolis Minneapolis Metropolitan Region Total $31,798 $48,881 $66,091 White (Non-Hispanic) $45,923 $60,195 $71,895 African American $25,301 $20,602 $29,723 American Indian $20,884 $19,715 $38,044 Asian $29,975 $39,608 $65,391 Hispanic $30,253 $33,958 $42,641

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

North Minneapolis

Minneapolis

Metropolitan Region

2012 Poverty Line for a 4-Person Household

GRAPH OF MEDIAN HOUSEHOLD INCOME BY RACEcomparison of North Minneapolis to the larger City and Metropolitan Area

TABLE OF MEDIAN HOUSEHOLD INCOME BY RACE

GRAPH OF MEDIAN HOUSEHOLD INCOME BY RACE OVER TIMEcomparison of trends for years 2000, 2009, and 2012

• The median household income in North Minneapolis varies significantly by race. For example, the median White (Non-Hispanic) income is at least $15,000 higher than that of any other racial group.

• The median household income is also consistently lower in North

Minneapolis than city levels for all categories except African Americans and American Indians.

• While median household income has steadily increased between 2000

and 2012 for the City (21.6% increase) and Metropolitan Area (28.7% increase), income levels have stayed relatively constant for North Minneapolis (3% increase)

0% 20% 40% 60%

Metropolitan Region

Minneapolis

NorthMinneapolis

$1,250 per month or less

$1,251 to $3,333 per month

More than $3,333 per month

GRAPH OF INCOME CATEGORIEScomparison of North Minneapolis to the larger City and Metropolitan Area

TABLE OF INCOME CATEGORIES

Data on income categories divides up employees in the region into three categories based on their monthly income.The categories roughly equate to annual incomes of below $15,000, $15,000 to $40,000, and ablove $40,000. Data

comes from LEHD Origin-Destination Employment Statistics. As seen above, the income distribution in NorthMinneapolis di�ers greatly from that seen at the City and Regional levels, with a majority of those employed holding

jobs in the middle-income range compared to a more positively skewed distribution at the larger geographies.Furthermore, North Minneapolis has a higher percentage of employed peoples in the lowest income category, with

27.4% of its employed population making less than $15,000 annually, compared to 19.7% and 18.6% for the Cityand Metropolitan Region respectively.

North Minneapolis Minneapolis Metropolitan

Region $1,250 per month or less 27.4% 19.7% 18.6% $1,251 to $3,333 per month 44.1% 34.7% 30.9% More than $3,333 per month 28.5% 45.6% 50.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

North Minneapolis

Minneapolis

Metropolitan Region

NORTH MINNEAPOLIS: LABOR FORCE PARTICIPATION

North Minneapolis Minneapolis Metropolitan

Region

Total

Working Age 29171 314,970 2,240,395 In Labor Force 18831 231,288 1,634,124 Participation Rate 64.6% 73.4% 72.9%

White (Non-Hispanic)

Working Age 8247 213,416 1,789,146 In Labor Force 5661 163,385 1,311,787 Participation Rate 68.6% 76.6% 73.3%

African American

Working Age 13313 47,764 163,329 In Labor Force 8640 30,507 113,977 Participation Rate 64.9% 63.9% 69.8%

American Indian

Working Age 341 4,540 13,588 In Labor Force 98 2,441 8,352 Participation Rate 28.7% 53.8% 61.5%

Asian

Working Age 4003 17,098 133,320 In Labor Force 2309 10,816 92,913 Participation Rate 57.7% 63.3% 69.7%

Hispanic

Working Age 2043 24,742 106,856 In Labor Force 1461 18,983 82,379 Participation Rate 71.5% 76.7% 77.1%

The Current Participation Rate for the Asian Population in North Minneapolis is: 57.7%

The Current Participation Rate for the White (Non-Hispanic) Population of the Metropolitan Region is: 73.3%

Increasing the North Minneapolis Asian Participation Rate to Match the Metropolitan White Participation Rate will Require This Many People to Enter the Workforce:

625

The Current Participation Rate for the African American Population in North Minneapolis is: 64.9%

The Current Participation Rate for the White (Non-Hispanic) Population of Minneapolis is: 76.6%

Increasing the North Minneapolis African American Participation Rate to Match the Minneapolis White Participation Rate will Require This Many People to Enter the Workforce:

1,558

Minneapolis Metropolitan Region Total 3,514 2,551 Non-Hispanic White 656 384

African American 1,558 1,118

American Indian 163 152

Asian 757 625 Hispanic 104 37

TABLE OF LABOR FORCE PARTICIPATION RATE BY RACE

GRAPH OF LABOR FORCE PARTICIPATION RATE BY RACEcomparison of North Minneapolis to the larger City and Metropolitan Area

The Labor Force Participation Rate is measured as percentage of the civilian population over 16 thatis either employed or unemployed but actively seeking employment. The participation rate is a toolused to measure the market supply of labor in a particular region, indicating the potential for economic growth. Furthermore, it is used in order to develop statistics which take into accountdiscouraged job seekers and others with limitations preventing their participation in the workforce.

GRAPH OF LABOR FORCE PARTICIPATION RATE OVER TIMEcomparison for trends for years 2000, 2009, and 2012

The table above displays the number of people who would need to move into the labor force in order to match the current participation rate for the White (Non-Hispanic) population of Minneapolis and the Metropolitan Region.

2000 2009 2012 North Minneapolis 63.0% 64.4% 64.6% Minneapolis 72.0% 73.5% 73.4% Metropolitan Region 74.2% 73.7% 72.9%

• North Minneapolis’ Labor Force Participation Rate is consistently lower than the rate for the Metropolitan Area for all racial categories

• The Participation Rate for the Asian population in North Minneapolis is particularly low at 57.7%. Converseley, the Hispanic Participation Rate is found to be the highest in North Minneapolis at 71.5%.

• The Participation Rate fluctuated significantly over time for the Asian and Hispanic populations, while staying relatively constant with a slight increase for the African American and White populations

The graph to the left shows illustrates the change in participation rate over time, with values for the years 2000, 2009, and 2012. Data for the Total, White (Non-Hispanic), African American, Asian, and Hispanic populations in North Minneapolis are provided, as well as the White (Non-Hispanic) rate for the City and Metropolitan Region as comparison metrics. The table to the right shows average labor force participation rates for each geographic area.

0% 20% 40% 60% 80%

Metropolitan Region

Minneapolis

North Minneapolis Owner (no Mortgage)

Owner (Mortgage)

Renter

NORTH MINNEAPOLIS: HOUSING

The Current Percentage of Renters who are Cost-Burdened in North Minneapolis is: 64.5%

The Current Percentage of Renters who are Cost-Burdened in the City of Minneapolis is: 49.4%

Reducing the North Minneapolis Cost-Burden Rate to Match the City's Cost-Burden rate will Require This Many Renters to Move out of Cost-Burden Status:

1,099

Cost-Burdened Households are de�ned as households which spend 30% or more of their income on housing costs. This measure evolvedfrom housing discourse in the National HousingAct of 1937 and pre- mid-1990 federal mortgageloan policies, and is currently used as an indicatorof the impact and restrictions of housing costs ona household’s standard of living.

The Current Percentage of Owners who are Cost-Burdened in North Minneapolis is: 52.3%

The Current Percentage of Owners who are Cost-Burdened in theMetropolitan Region is: 32.3%

Reducing the North Minneapolis Cost-Burden Rate to Match the Region's Cost-Burden rate will Require This Many Owners to Move out of Cost-Burden Status:

1,086

North Minneapolis Minneapolis Metropolitan Region

Renters Owners (Mortgage)

Owners (no Mortgage) Renters Owners

(Mortgage) Owners

(no Mortgage) Renters Owners (Mortgage)

Owners (no Mortgage)

Number of Housing Units 7,273 5,431 1,426 83,030 64,566 18,597 338,683 602,396 183,393

Number of Cost-Burdened Households 4,692 2,840 281 41,025 23,981 3,588 162,565 194,594 24,746

Percentage of Cost-Burdened Households 64.5% 52.3% 19.7% 49.4% 37.1% 19.3% 48.0% 32.3% 13.5%

Renters Owners (Mortgage)

Owner (no Mortgage)

Minneapolis 1,099 825 0 Metropolitan Region 1,201 1,086 88

The table to the right displays the number of households that would need to move out of cost-

burdened status to match the White (Non-Hispanic) rate for Minneapolis and the Metropolitan Region,

divided up as renters, owners with a mortgage, and owners without a mortgage.

GRAPH OF COST-BURDENED HOUSEHOLDS OVER TIME (RENTERS) GRAPH OF COST-BURDENED HOUSEHOLDS OVER TIME (OWNERS)

TABLE OF COST-BURDENED HOUSEHOLDS BY TENURE STATUSGRAPH OF COST-BURDENED HOUSEHOLDS BY TENURE STATUScomparison of North Minneapolis to the larger City and Metrpolitan Area

• The number of renters who are cost-burdened in North Minneapolis is significantly higher than the number of cost-burdened owners both with a mortgage (12.2%) and without (44.8%)

• Geographically, for all tenure statuses, North Minneapolis has a consistently higher percentage of cost-burdened households than the City or the Region

• The high levels of discrepancy by tenure status indicate a necessity to focus targeted policy particularly toward renters

• The higher percentage of cost-burdened households in North Minneapolis indiates a reduced capacity for household resiliency, stability, and security. In particular, the lack of resiliency limits neighborhood-level community investment. Tackling this issue will require a significant investment, as seen in the figure to the right

Total Owner Renter Rate Total 14130 6857 7273 48.5% White (Non-Hispanic) 4696 3543 1153 75.4% African American 6751 2213 4538 32.8% American Indian 139 66 73 47.5% Asian 1335 656 679 49.1% Hispanic 743 189 554 25.4%

TABLE OF NORTH MINNEAPOLIS HOMEOWNERSHIP RATE

• Between 2000 and 2009, North Minneapolis faced a 14.1% increase in households at cost-burdened status for renters and 22.4% increase for owners with a mortgage. Neither category has been able to reduce this rate to 2000 levels.

• While the percentage of households that are cost-burdened in

North Minneapolis has been consistently higher than levels seen at the City or Regional level, there has been a minimal increase in this gap between 2000 and 2012 for both renters and owners with a mortgage