A new study has shown that Duluth is facing a serious housing shortage. To meet the needs of its current and future residents, the city would need about 6,200 additional homes. Without these new homes, more families, workers, and seniors will continue to struggle to find a place to live. The shortage affects both renters and homeowners, making it harder for people to settle in the city or to stay long-term.

Shortages Across All Price Ranges

The lack of housing isn’t just a problem for people looking for low-cost options. Homes at nearly every price range are in short supply. Families searching for affordable starter homes can’t find enough choices, and middle-income buyers are also competing for limited options. This widespread shortage is pushing many people to either pay more than they can afford or delay buying altogether.

High Rent and Low Vacancies

Rental housing in Duluth is also in trouble. The average rent is around $1,443 a month, which is a lot when compared to average incomes in the area. More than half of renters spend over 30 percent of their earnings just on rent, which puts a strain on their budgets for food, healthcare, and other needs. On top of that, the vacancy rate is only 1.8 percent. A healthy market usually has closer to 5 to 7 percent vacancy, meaning Duluth is well below what is needed for renters to have real options.

Seniors in Need of More Options

Another major finding of the study is the need for more housing designed for older adults. By the year 2030, Duluth will need about 2,400 units built specifically for seniors. This would not only give older residents more suitable places to live, but it would also open up existing homes for younger families when seniors move into better-fitting housing. Without this kind of development, the pressure on the overall housing market will only grow.

Possible Solutions for the City

To address this housing crisis, Duluth will need to take action in several different ways. Building new homes is the most obvious solution, but that alone won’t be enough. Other options include repurposing older buildings, turning vacant offices into apartments, and finding creative ways to add more units throughout the city. The scale of the shortage means that no single solution will fix the problem. Instead, Duluth will need a combination of approaches to give residents more choices and to keep the city affordable and livable for the future.