Minnesota’s home shortage, the rising cost of homeownership, and the need for land use reform were front and center at the Minnesota State Fair during separate conversations with the state’s two major-party candidates for governor.
KARE 11 political reporter Danny Spewak moderated the discussions with U.S. Sen. Amy Klobuchar (D) and Minnesota House Speaker Lisa Demuth (R). The forum was presented by Housing First Minnesota with our partners Family Housing Fund and Greater Minnesota Housing Fund.
For Housing First Minnesota members, one of the clearest takeaways was that land use reform remains part of the conversation heading into the 2027 legislative session.
On Land Use Reform
“I would support so many elements of [the Minnesota Starter Home Act], and Mike [Howard, DFL State Rep.] himself is still negotiating and working with the lead Republican on the bill, Representative Igo, and [it] is really important that we get that thing passed.” –U.S. Sen. Amy Klobuchar (D)
“So, one of the things I want to use as the next governor is not just having a great housing plan, but measuring that by how many units are actually built and in what time frame. Because there are too many communities with too many delays in permitting; over-burdensome regulations are delaying projects. We have to make sure we actually are having units built to house people in whatever way is necessary. That could be individual single-family homes. That could be townhomes, condos, apartments—it has to be affordable.” –Speaker Lisa Demuth (R)
On Affordability
“I do first focus on that building out because the more we build more units, affordable, market-based, and the like, it is going to bring down the cost for everyone, including people who maybe are on the edge where they can actually afford a home and they’re going to be able to do it.” –U.S. Sen. Amy Klobuchar (D)
“We are over-mandating the cost of houses, so for sure, the mandates, the extra regulations put on our house are driving up that cost, pushing people [to delay homeownership] into their 40s.” –Speaker Lisa Demuth (R)
Critical Moment for Housing
The discussion comes at an important time for Minnesota’s residential construction industry.
Minnesota is currently short nearly 100,000 homes and apartments, nearly double the shortage identified by a state task force in 2018. Statewide homebuilding and apartment construction has fallen nearly 38% from its 2021 peak, while permitting in the Twin Cities is down more than 42%.
At the same time, the median new home price statewide has reached approximately $560,000, with the Twin Cities approaching $570,000. Minnesota remains the most expensive state in the region in which to build a new home.
These trends have kept the need for reform at the center of Housing First Minnesota’s advocacy work. Heading into 2027, the focus will remain on removing barriers that make it harder and more expensive to build starter homes, townhomes and other attainable home options.
The next governor and Legislature will have an opportunity to move Minnesota from years of discussion toward policies that can increase homebuilding, improve affordability, and create more paths to homeownership.
Watch Candidate Conversations: Minnesota’s Housing Future >>
