Governor Candidates Discuss Housing at Minnesota State Fair
Housing supply, affordability, and land use reform took center stage at the Minnesota State Fair during separate conversations with the state’s two major-party candidates for governor, U.S. Sen. Amy Klobuchar (D) and Min-nesota House Speaker Lisa Demuth (R).
Presented by Housing First Minnesota in partnership with Family Housing Fund and Greater Minnesota Housing Fund, the forum was moderated by KARE 11 political reporter Danny Spewak. The discussions provided an important opportunity to elevate housing issues in the statewide policy conversation ahead of the 2027 legislative session.
With Minnesota facing a shortage of nearly 100,000 homes and apartments, the event reinforced the urgency of moving beyond discussion, with both candidates supporting solutions that remove barriers to building, expand housing supply, and create more attainable paths to homeownership.
Federal Housing Town Hall Puts Minnesota’s Homeownership Barriers in the Spotlight
Earlier this summer, Housing First Minnesota brought federal housing officials, state lawmakers, and industry members together for an important conversation about the policies shaping new-home construction and homeownership opportunities across Minnesota.
Officials from the U.S. Department of Housing and Urban Development (HUD) heard directly from local builders and developers about how state and local regulations affect the cost, availability, and variety of new homes our industry can build.
Much of the conversation centered on local land-use policies and the challenges of creating more entry-level homes. Industry participants shared how zoning requirements, minimum lot sizes, and other local regulations can make it difficult—or even impossible—to build smaller homes at more attainable price points.
The discussion reinforced the importance of the Minnesota Starter Home Act, legislation designed to create more opportunities for starter homes by modernizing local land-use standards. For Housing First Minnesota members, it was a valuable opportunity to share real-world examples of how outdated requirements can block efforts to meet the needs of today’s homebuyers.
Participants also discussed proposed 2026 homeowners association (HOA) reform legislation. Sen. Jordan Rasmusson and Rep. Spencer Igo joined federal officials and industry representatives to outline how updates to Minnesota’s HOA statutes could bring greater transparency, consistency, and predictability for homeowners and developers while supporting continued housing development.
The town hall gave federal and state leaders a firsthand look at the challenges facing Minnesota’s housing industry and gave builders and developers a chance to help shape the conversation around practical solutions. By bringing decision-makers and housing providers to the same table, Housing First Minnesota continues working to remove unnecessary barriers and expand homeownership opportunities throughout the state.
City of Dayton Abandons Proposed Housing Moratorium
In late July, the Dayton City Council removed a proposed six-month housing moratorium from consideration after questions were raised about whether the city had the legal authority to enact it.
The moratorium would have temporarily paused residential development while city officials evaluated staff workload and potential changes to land-use ordinances. Minnesota law allows cities to enact land-use moratoriums under certain circumstances, but staff workload is not among the reasons authorized by state statute.
Developers also raised concerns during an earlier planning commission meeting about plans to structure the moratorium so certain identified developments could continue while others would be put on hold.
Ahead of the scheduled July 28 public hearing, Housing First Minnesota submitted a letter outlining its concerns with the proposal. The letter emphasized that state law does not give cities broad authority to stop development outside the specific circumstances established in statute—particularly for reasons related to staff capacity.
Housing First Minnesota also warned that the proposal lacked a sufficient legal basis and could leave the city open to legal challenges. The city council ultimately removed the moratorium from consideration, and it did not hold the scheduled public hearing.
Dayton’s proposal is the latest example of a local government considering development restrictions amid conversations about growth, infrastructure, and planning capacity. At a time when Minnesota continues to face a serious housing shortage, these pauses can delay new homes, increase project costs, and make an already challenging housing market even more difficult.
Earlier this year, Lakeville enacted a one-year development moratorium, citing in part proposed state legislation intended to remove local barriers to housing development. As of publication, Lakeville’s moratorium remains in place.
Housing First Minnesota Honors 2026 Legislative Champions
Housing First Minnesota recognized 24 state lawmakers with its 2026 Housing Leadership Award for their work to support Minnesota’s homebuilding industry and help make homeownership more attainable.
This year’s honorees include 11 members of the Minnesota House and 13 members of the Minnesota Senate, representing communities across the state and both sides of the political aisle. Each demonstrated leadership on policies to improve housing affordability, increase the supply of homes, and create more opportunities for Minnesotans to become homeowners.
One of the session’s most important housing accomplishments was passing legislation that prevents local governments from requiring developers to establish unnecessary HOAs as a condition of residential development.
For builders and developers, these mandates could add complexity to projects and create ongoing costs for the families who will eventually call those communities home. Eliminating unnecessary HOA requirements gives housing providers greater flexibility while helping reduce the long-term cost of owning a newly constructed home.
“Housing affordability remains one of the most pressing issues facing Minnesota families,” said Mark Foster, vice president of legislative and political affairs at Housing First Minnesota.
Foster credited this year’s honorees with engaging thoughtfully on the complex issues affecting housing production and finding opportunities to work across party lines. That leadership is especially important as our industry continues to navigate high construction and development costs, limited housing inventory, and ongoing affordability challenges for prospective buyers.
The 2026 honorees from the Minnesota House are Reps. Kristin Bahner of Maple Grove, Dave Baker of Willmar, Nathan Coulter of Bloomington, Jeff Dotseth of Kettle River, Mike Howard of Richfield, Spencer Igo of Wabana Township, Liish Kozlowski of Duluth, Larry Kraft of St. Louis Park, Shane Mekeland of Clear Lake, Jim Nash of Waconia, and Kari Rehrauer of Coon Rapids.
Senate recipients are Sens. Liz Boldon of Rochester, Gene Dornink of Brownsdale, Rich Draheim of Madison Lake, Steve Drazkowski of Mazeppa, Glenn Gruenhagen of Glencoe, Amanda Hemmingsen-Jaeger of Woodbury, Karin Housley of Stillwater, Jeff Howe of Rockville, Eric Lucero of St. Michael, Susan Pha of Brooklyn Park, Lindsey Port of Burnsville, Jason Rarick of Pine City, and Jordan Rasmusson of Fergus Falls.
The geographic and political diversity of this year’s recipients reflects an important reality: Housing challenges affect every corner of Minnesota. Market conditions may look different in urban, suburban, and rural communities, but builders across the state face regulatory costs and other barriers that can limit the number and types of homes they can provide.
As we look ahead, Housing First Minnesota will continue working with lawmakers from both parties to advance practical solutions, remove barriers to new-home construction, and put homeownership within reach for more Minnesota families.
