Despite nearly a foot of fresh snow, a bipartisan coalition of legislators unveiled one of the most ambitious set of housing policy bills in decades this week at the Capitol. The “Yes to Homes” agenda aims to increase housing availability statewide by cutting regulatory hurdles and promote affordabilitycritical issues for homebuilders, developers, and real estate professionals.
A Legislative Push for More Housing Options
At the heart of the legislative package is the Minnesota Starter Home Act, designed to bring back entry-level housing by allowing increased density without costly, drawn-out variance processes. This means duplexes and accessory dwelling units (ADUs) would be permitted in residential zones, making it easier for developers to meet rising demand.
“The median cost of a new single-family home is over $540,000, putting homeownership out of reach for many hard-working Minnesotans,” said Senator Jordan Rasmusson (R-Fergus Falls). “This proposal focuses on cutting red tape to increase the supply of starter homes and empowering the free market to meet the demand.”
Minnesota’s housing shortage–estimated at over 100,000 units–has only grown since a 2018 report pegged the deficit at 50,000. Senate Housing Committee Chair Lindsey Port (DFL-Burnsville) reinforced the urgency, stating, “Every moment we wait to take action, we fall farther behind.”
Key Policy Changes on the Table
The Yes to Homes agenda includes several additional policy proposals that could significantly impact the housing industry:
- The Increased Housing Options Act – Supports upzoning in transit-accessible areas, creating new opportunities for mixed-use and higher-density projects.
- The Reducing Rent Inflation Act – Facilitates condo and apartment construction in commercial zones, expanding housing supply in high-demand areas.
- The Freedom in Home Design Act – Addresses affordability by limiting exclusionary zoning tactics like mandatory aesthetic standards, reducing unnecessary construction costs.
- The People Over Parking Act – Eliminates parking mandates statewide, allowing developers to optimize land use for housing instead of excessive parking requirements.
A Call for Statewide Action
Bloomington City Councilmember Shawn Nelson highlighted how his city has proactively reduced housing barriers, but he emphasized that local efforts alone won’t solve the crisis. “This can be done, it is being done, but we need the entire state behind this initiative,” Nelson stated.
With over two dozen organizations backing parts or all of the Yes to Homes agenda, momentum is building. Representative Michael Howard stressed that the coalition includes an unprecedented mix of stakeholders, “You’ll never see a more diverse group.”
What’s Next?
These bills have been introduced in both legislative chambers and will soon be up for committee hearings. For industry professionals, this is a pivotal moment to engage with policymakers and advocate for solutions that balance growth, affordability, and community needs. Watch our social media channels and your emails for opportunities to engage on these bills.
Stay tuned for updates as these proposals move through the legislative process.
