VOL. 8 ISSUE 4, DEC. 2024
THE MINNESOTA HOUSING INDUSTRY NEWS SOURCE BY HOUSING FIRST MINNESOTA • HOUSINGINDUSTRYNEWS.ORG
With a split Minnesota Legislature in 2025, housing affordability is poised to become a key area for bipartisan collaboration in the upcoming session.
Minnesota produces a historic, rare outcome at state capitol Housing policy reform arises as one of the few bipartisan opportunities Minnesota voters seem to prefer a split state government. History shows that there has been one-party control only four out of the past 34 years, including 2023 and 2024. Following the most recent election, the Minnesota Legislature will enter the 2025 legislative session as evenly split as possible with the House of Representatives standing at 67 members for each, DFL and GOP, and the Minnesota Senate remaining in DFL control with a 34-33 margin. Gov. Tim Walz (DFL) will return to Minnesota to finish his second term following his top-of-ticket loss as the Democratic vice-presidential candidate. “This is likely to be the most divided Minnesota Legislature we have seen in a generation,” said Mark Foster, vice president of legislative and political affairs. “Only policy issues that can receive strong bipartisan support will be seriously considered. That’s where housing comes in. In recent years, members from both parties have elevated housing policy reform, and these issues should be a top priority for our newly elected officials to get to work on.” Throughout the 2024 campaign, as housing costs continue to rise, housing availability and affordability issues garnered more attention from voters than ever before. So much so that 91% of Gen Z
voters viewed housing affordability as “very important” or “somewhat important” in their voting decisions, according to a Redfin survey. First-time homebuyers reached a new all-time high for median age as housing prices and mortgage rates have increased — the median first-time homebuyer’s age was 38 years old in 2024, up from 35 in 2023. “Homeownership opportunities rank as one of the top issues for more and more Minnesotans,” said James Vagle, CEO of Housing First Minnesota. “As we saw last legislative session, addressing the barriers unnecessarily driving up the costs of housing is an opportunity for bipartisan agreement. Without significant statewide reforms, our housing market will remain woefully undersupplied.” During the 2024 session, a unique and diverse coalition of business associations, labor groups, environmentalists, housing advocates and more supported the “Minnesotans for More Homes” agenda. The bipartisan legislature was introduced as a slate of bills geared toward allowing for the creation of more homes and greater affordability options. Multiple pieces of this agenda were signed into law in May, but many pieces were unable to get across the finish line. CONTINUED >> PAGE 6
INSIDE THIS ISSUE
Builder confidence rises amid affordability challenges PAGE 12
Industry excellence celebrated at annual awards gala PAGE 14
Partnership delivers three new transitional homes for veterans PAGE 18
Housing Leadership Summit addresses US housing crisis, explores bipartisan solutions Industry leaders, policymakers and advocates gathered at the 2024 Housing Leadership Summit in September to discuss the nation’s growing housing affordability crisis. Presented by Housing Affordability Institute and sponsored by Zillow and the Polymeric Exterior Products Association, the summit covered a wide range of topics, from state legislative reforms to Supreme Court rulings that impact the housing market. Kicking off the summit, a panel discussed housing reforms in CONTINUED >> PAGE 5 HOUSING INDUSTRY NEWS
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