2026 Legislative Session Wrap-Up: Housing Priorities Continued to Build Momentum

May 18, 2026  By Grace Greene


The 2026 legislative session brought another challenging and unpredictable year to the Capitol. Budget pressures, competing priorities and continued political division shaped much of the debate throughout session.

Even in that environment, Housing First Minnesota and its members continued advancing conversations around housing affordability, supply and homeownership opportunities. While housing was not always at the center of the legislative agenda, the issue continued gaining traction among lawmakers, stakeholders and the media.

From zoning modernization to homeowner protections and regulatory reform, Housing First Minnesota remained focused on advancing practical policies that support homeownership opportunities for Minnesotans.

Advocacy That Continued to Move the Needle

Throughout session, Housing First Minnesota members remained actively engaged at the Capitol — testifying in committee hearings, meeting directly with legislators, responding to action alerts and participating in grassroots advocacy efforts.

That engagement helped keep housing affordability and supply concerns part of legislative discussions during a year when lawmakers faced numerous competing issues.

“Housing affordability is quickly becoming one of the defining issues facing Minnesota families,” said Mark Foster, vice president of legislative and political affairs for Housing First Minnesota. “The challenge now is turning years of discussion into meaningful policy action.”

Foster consistently emphasized the need for lawmakers to address the regulatory barriers that continue driving up the cost of housing construction across Minnesota.

“If this committee does one thing this year that would make a substantial difference, it would be to fix the way residential development processes are approved,” Foster testified during session. “Far too many times, we are essentially ‘buying zoning,’ and every time that process adds delays and uncertainty, housing becomes more expensive.”

Housing First Members speaking with Sen. Rasmusson at Housing Day at the Capitol 2026

The Starter Home Act Became a Statewide Conversation

One of the defining housing discussions of the 2026 session centered around the Minnesota Starter Home Act.

While the legislation ultimately did not become law this year, the proposal continued building bipartisan momentum and significantly elevated the statewide conversation around zoning modernization, housing supply and affordability.

Nick Erickson, senior director of housing policy for Housing First Minnesota, remained one of the leading voices shaping those discussions at the Capitol.

“I can tell you that there is 100% appetite for bipartisan housing reform,” Erickson said during session.

Nick Erickson testifying in support of the Starter Home Act

Erickson also continued highlighting the scale of Minnesota’s housing shortage and the regulatory barriers limiting homeownership opportunities.

“We are roughly 100,000 homes short of a stable housing market,” Erickson said during public remarks this session. “Regulatory barriers such as minimum lot sizes and outdated zoning requirements continue to make housing more expensive for Minnesota families.”

Lawmakers carrying the legislation echoed many of those concerns throughout session.

“In Minnesota, the median cost of a new single-family home is over $540,000, putting homeownership out of reach for many hardworking Minnesotans,” said Sen. Jordan Rasmusson, chief Senate author of the Minnesota Starter Home Act. “By cutting red tape, we can empower the free market to build more homes and give first-time buyers a fighting chance.”

Rep. Spencer Igo, a lead House author of the legislation, also emphasized the bipartisan nature of the housing shortage discussions taking place at the Capitol.

“This is not a partisan issue,” Igo said during committee discussions on the bill. “We are trying to meet in the middle and help address a housing shortage that is impacting communities across Minnesota.”

The Starter Home Act also generated significant press coverage throughout the year, helping bring housing affordability discussions to a broader statewide audience.

Coverage and commentary appeared across numerous media outlets, including Finance & Commerce, HousingWire, Twin Cities Business and Minnesota Reformer, highlighting the growing debate around local zoning controls, housing supply and the need for more starter homes throughout Minnesota communities.

One of the most widely discussed pieces came through a Minnesota Reformer op-ed urging lawmakers to “say no to the suburban mayors and yes to more homes.” The commentary argued that local growth restrictions and resistance to housing development are worsening affordability challenges across the state and preventing future homebuyers from accessing homeownership opportunities.

The growing media attention surrounding the Starter Home Act helped reinforce what Housing First Minnesota and housing advocates have emphasized for years: Minnesota’s housing shortage is no longer a niche policy discussion — it is increasingly becoming a mainstream economic and affordability issue.

Yes to Homes Coalition Continued to Grow

Just as important as the legislation itself was the continued strength and expansion of the Yes to Homes coalition.

Throughout session, the coalition brought together housing advocates, builders, business organizations, local leaders and community stakeholders around a shared message: Minnesota must build more homes to address affordability challenges.

The coalition played a critical role in keeping housing supply and zoning reform discussions active at the Capitol while helping broaden bipartisan awareness around the connection between housing shortages and rising costs.

“Whether we are talking to students trying to afford rent, young families trying to afford a home for the first time, or seniors looking to downsize, we hear the same thing from Minnesotans — housing costs too damn much,” Sen. Lindsey Port said while discussing the Yes to Homes agenda at the Capitol. “The status quo is not working.”

Sen. Port (middle) at Housing Day at the Capitol 2026

As debates intensified around local control and development restrictions, the coalition continued emphasizing that the state cannot solve its affordability challenges without increasing housing supply across all housing types and price points.

Even when legislation stalled, the coalition demonstrated that support for housing reform continues expanding beyond the housing industry itself.

Lakeville Debate Reinforced Housing Concerns

The session also highlighted growing tensions between local growth restrictions and statewide housing affordability goals.

Lakeville drew significant statewide attention this spring after city leaders approved a temporary moratorium on certain new residential developments, citing concerns about infrastructure, schools and rapid population growth.

The move sparked broader debate among legislators, housing advocates and editorial boards about the consequences of restricting new housing supply during a statewide affordability crisis.

Housing advocates and lawmakers raised concerns that actions like Lakeville’s could worsen affordability challenges for future homebuyers and send the wrong message at a time when Minnesota needs more housing opportunities.

“Lakeville doesn’t need to stop to stay strong,” Erickson said while criticizing the moratorium and warning that limiting housing supply ultimately drives up costs for Minnesota families.

Several legislators also publicly questioned the decision, arguing that slowing growth does not solve affordability problems and instead risks pushing housing costs even higher in surrounding communities.

The debate became a real-world example of many of the concerns Housing First Minnesota and the Yes to Homes coalition raised throughout session regarding local barriers to housing development.

Important Progress on HOA Reform

One area where Housing First Minnesota achieved a significant victory this session involved homeowners association (HOA) policy.

After multiple years of engagement, negotiations and advocacy work, lawmakers advanced meaningful reforms related to HOA governance, transparency and homeowner protections. Housing First Minnesota worked extensively with legislators, local governments and stakeholders throughout that process to help shape balanced reforms that protect homeowners while also recognizing the realities facing associations and housing developers.

Most importantly, the session concluded with a major step forward in preventing local governments from unnecessarily requiring HOAs as a condition for approving new residential developments. The provision, supported by Housing First Minnesota and the Yes to Homes coalition, represented a significant policy achievement years in the making.

Mark Foster testifying in support of HOA reform bill

The issue has become increasingly important as more cities have attempted to shift long-term infrastructure maintenance responsibilities onto homeowners through mandatory HOA requirements tied to new development approvals. Housing First Minnesota consistently argued that these mandates can add unnecessary costs, create long-term financial obligations for homeowners and become another barrier to housing affordability.

The reforms advanced this year establish important guardrails around local government authority while reinforcing that HOAs should not be used as a default mechanism for cities to offload public responsibilities onto future homeowners.

For Housing First Minnesota, the outcome represented not only an important policy win, but also the culmination of years of sustained advocacy to protect homeowners, improve accountability and push back against costly local mandates that ultimately impact housing affordability.

Continuing to Push Back on Cost Drivers

Housing First Minnesota also continued raising concerns about proposals that would increase housing costs, particularly related to energy code mandates and additional regulatory requirements.

Throughout committee hearings and legislative negotiations, the association consistently urged lawmakers to carefully evaluate the affordability impacts new mandates could have on future homeowners and housing development.

Eric Boyd, north region president of ARCXIS testifying in support of a bill that attempted to address harmful and costly changes in the residential energy code

At the same time, lawmakers increasingly showed willingness to engage in broader conversations about housing supply, permitting delays, infrastructure costs and barriers to development.

“The momentum behind housing reform is real,” Erickson said during public discussions this year, pointing to growing bipartisan engagement and increased awareness around Minnesota’s housing shortage.

2026 Elections

As Minnesota moves toward the 2026 election cycle, housing affordability and supply are expected to remain major issues in statewide and legislative races.

With an open governor’s race on the horizon, control of the Minnesota House and Senate again in play and growing public attention on affordability challenges, Housing First Minnesota anticipates housing policy will continue becoming a larger part of campaign conversations across the state.

Throughout session, lawmakers on both sides of the aisle increasingly acknowledged the impact rising housing costs are having on Minnesota families, workforce growth and economic competitiveness. Those discussions are expected to continue well beyond adjournment and into the 2026 campaign season.

Housing First Minnesota will remain actively engaged throughout the election cycle by educating candidates on industry priorities and the policy changes needed to improve housing affordability and expand homeownership opportunities.

L to R: VP of Legislative & Political Affairs Mark Foster, Board Chair John Kraemer, Speaker of the House Lisa Demuth, and CEO James Vagle

In the coming months, Housing First Minnesota will distribute candidate questionnaires to individuals running for statewide office and legislative seats to better understand candidates’ positions on housing supply, zoning reform, regulatory barriers and homeownership policy.

The Housing First PAC will also announce a slate of political endorsements ahead of the 2026 elections, highlighting candidates who support practical, pro-housing solutions that help address Minnesota’s growing affordability challenges.

For Housing First Minnesota, the work to advance housing policy does not end when the legislative session adjourns. The conversations happening now will help shape the future of housing policy — and homeownership opportunities — for years to come.

Looking Ahead

While not every housing priority crossed the finish line in 2026, important progress was made.

Housing affordability and supply remain pressing issues across Minnesota, and this session demonstrated that lawmakers, advocates, local officials and the public are increasingly willing to engage in serious conversations about solutions.

Housing First Minnesota, the Yes to Homes coalition and industry advocates helped keep those conversations moving forward while continuing to advocate for policies that expand housing opportunities, reduce barriers to construction and protect homeowners.

The conversation is far from over.

Housing First Minnesota will continue the discussion during its upcoming Virtual Town Hall: Legislative Session Wrap-Up on May 27, where members will hear directly from the advocacy team about key outcomes from session, major policy developments and what comes next for housing reform efforts in Minnesota. The virtual event will provide additional insight into the progress made on issues like the Starter Home Act, HOA reform, local growth restrictions and the continued push for policies that improve housing affordability and supply across the state.

The work is far from over, but the momentum continues to build.

Housing First Minnesota thanks every member, advocate, coalition partner and industry stakeholder who engaged this session. Whether attending Housing Day at the Capitol, testifying in committee, contacting lawmakers or participating in grassroots advocacy efforts, your voice made a difference.

Together, we will continue working toward policies that support homeownership opportunities and ensure more Minnesota families can achieve the dream of owning a home.

2026 Session Media Roundup

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