One State, Undersupplied
Minnesota cannot build enough new homes to keep up with demand. The resulting supply-demand imbalance is causing rents and existing home prices to spike.
Homes in Minnesota cost more than anywhere else in the region – both new and existing.
Starter homes targeted to first-time buyers are not allowed in many growing communities.
Since 2021, new home production has decreased 35% statewide and has plummeted 43% in the Twin Cities.
Minnesota’s Housing Challenges
Too Few Homes
According to Up for Growth, Minnesota needs 98,000 more homes to meet today’s demand—nearly five times what the state builds in a single year. The greatest need is in the Twin Cities and surrounding communities.
Without enough homes, prices and rents will keep climbing, putting added strain on families and the state’s economy.
Local Policies Price-Out Residents
Minnesota has the highest cost of building new homes in the Midwest. At $536,315, a new home here costs more here than anywhere else in the region.
Policies that block starter homes and unfunded mandates for luxury features drive up costs, especially for first-time buyers.
These high costs don’t just keep Minnesotans out of homeownership—they also make other Midwest cities and states more attractive for job growth.
Slow, Outdated Approvals
The way communities approve new homes hasn’t changed in 50 years. Instead of flexibility, approvals must be purchased through costly fees and added requirements from local government.
With Minnesota facing a severe home shortage, outdated and slow approvals prevent communities from responding with the urgency the moment demands. Streamlining the process is essential to bring more homes online faster.
Minnesota Is Missing New Starter Homes
Today’s system favors expensive move-up homes, while modest options for first-time buyers are disappearing.
Without new starter homes on the market, homeownership will slip further out of reach for Minnesotans.
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.
