The option of purchasing a new home is out of reach for more Minnesotans than at any time within the past decade.
Data shows that the new home affordability ratio (the percentage of households that earn at or above the qualifying income) for Minnesota is currently at 37.6%. This is over five percent behind the United States average of 42.7%.
In April, the Pioneer Press published an article highlighting the staggering costs Minnesota’s housing regulations placed on Minnesota homeowners. The article, for which Housing First Minnesota provided multiple interviews and data points, addresses the effect regulations have on home affordability, including:
- The snowball effect of multiple costly state and local regulations;
- How, excluding coastal markets, the Twin Cities is the costliest real estate market in the U.S.;
- Despite the high costs, special interest groups and regulatory agencies are pushing for more costly regulations.
During the 2017 legislation session Housing First Minnesota sought solutions to Minnesota’s costly regulatory environment though legislation. HF 1001/SF 745 would allow the Legislature to review any housing-related regulation that costs homeowners more than $1,000. Chief Authors of this legislation are Sen. Mary Kiffmeyer (R-Big Lake) and Rep. Bob Vogel (R-Elko-New Market). Additionally, bi-partisan leadership included Speaker of the House Kurt Daudt, Majority Leader Joyce Peppin, Majority Leader Paul Gazelka and Minority Leader Tom Bakk signing on as co-authors. The bill passed the House floor with bi-partisan support and is positioned to advance in 2018.