State of Unaffordability
Minnesota is short more than 100,000 homes, leaving families with fewer options and rising costs. Data from across the state shows how outdated rules and high costs are pricing Minnesotans out of homeownership.
Minnesota’s housing shortage has doubled since 2018.
Homes – both new and existing- cost more in Minnesota than anywhere in the region.
Options for first-time buyers and growing families are limited because of local policies.
Did You Know…
… New Home Production Is Falling And Cannot Keep Up With Demand.
New home production has fallen 35% statewide since 2021.
… Homes In Minnesota Cost More Than Anywhere In the Midwest.
The high cost of housing is placing homeownership out of reach.
… Minnesota’s homeownership rate is declining sharply.
Homeownership in Minnesota has its largest decline on record in 2024, down 300 bps.
AFFORDABILITY
Minnesota’s Cost Problem
Priced Out: At $536,315, building a home in Minnesota costs more than anywhere else in the region. (Zonda)
Out of Reach: The shortage has pushed existing home prices beyond what many families can afford. (Housing Affordability Institute)
Renters Stuck: High rents keep would-be first-time buyers from saving for a down payment. (CNBC)
Falling Behind: Home costs are rising twice as fast as incomes. (U.S. Census, Zonda)
HOUSING SUPPLY
Minnesota’s Supply Challenge
Missing Options: A 100,000-home shortage makes it harder for first-time buyers to find a starter home, double what it was in 2018. (Up for Growth, MN Housing Task Force)
Falling Behind: Minnesota is five years short on the homes families need today.
Production Drop: New home construction in Minnesota is down 35% in just three years. (U.S. Census)
Shortage Epicenter: The Twin Cities area accounts for 75% of Minnesota’s shortage, and permits have plummeted 43% since 2021. (Up for Growth, U.S. Census)
HOMEOWNERSHIP
HOMEOWNERSHIP IN DECLINE
A Sharp, Concerning Drop: In 2024, Minnesota’s homeownership rate saw its largest decline on record. (U.S. Census)
Starting Later Than Ever: Nationally, the median age of a first-time homebuyer is now 38 — the highest on record. (National Association of Realtors)
Falling Behind Our Neighbors: Minnesota is no longer the regional leader in homeownership. (U.S. Census)
Don’t Let Homeownership Fall Further Out of Reach
Be part of the solution. Tell State Lawmakers to pass the Minnesota Starter Home Act.
Urge your lawmakers to pass the Minnesota Starter Home Act and make homeownership possible for the next generation.
Learn how the Minnesota Starter Home Act will bring back starter homes and open doors for first-time buyers.
