VOL. 5 ISSUE 1, FEB. 2021
THE MINNESOTA HOUSING INDUSTRY NEWS SOURCE BY HOUSING FIRST MINNESOTA • HOUSINGINDUSTRYNEWS.ORG
We now sit at record-low housing inventory across the state of Minnesota, with home prices hitting new highs in every region. State housing advocates are working to address the issue during the 2021 session.
Inventory and affordability problem growing, housing INSIDE THIS ISSUE on the 2021 legislative agenda At the start of the COVID-19 pandemic, some thought home prices may level off or even drop and that the inventory of homes for sale would finally grow. One year later we know that could not be further from the case. We now sit at record low housing inventory across the state of Minnesota, with home prices hitting new highs in every region. With the Minnesota legislature back in session, state housing advocates are turning their attention to legislative leaders to see how they will address Minnesota’s growing housing shortage and affordability crisis. The 2021 legislative session will be different The Minnesota Legislature convened on Jan. 5 to begin its two-year session. COVID-19 safety protocols influenced
the earliest days of session, keeping most meetings virtual and limiting attendance in committee meetings and floor sessions. The opening month of the 2021 session featured the traditional emphasis of a budget year, with state agency orientations and updates from organizations and trade groups active in the legislative process. The early portion of the session was also marked by the introduction of the governor’s budget, a key milestone in the legislature’s work. In subsequent months, the pace of activity will increase and the intensity surrounding issues will grow. Housing committee testimony Housing committees in both the House and Senate have heard from a variety of agency, nonprofit and industry stakeholders over the early weeks of session. The Senate Housing Finance and Policy
Committee received testimony from industry stakeholders in a late January hearing. Industry leaders shared updates on the remarkable rebound of the market in 2020, and also the inventory and affordability challenges impacting many homebuyers. David Siegel, executive director of Housing First Minnesota, cited inventory and affordability as two areas where the legislature must act. “We are only building about 65% of the homes necessary to supply our market, and those homes are being predominantly built at mid-level and higher price points,” said Siegel. He continued by sharing the challenges related to exclusionary policies that have compounded over the years in Minnesota,
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Lumber prices continue wild ride PAGE 10
REALTORS®: Inventory shortage continues to plague the Twin Cities housing market PAGE 11
New campaign looks to promote homeownership for everyone, everywhere PAGE 13
Six Minnesota homebuilders recognized as top energy-efficient builders in the nation Minnesota homebuilders continue to lead the nation in energy efficiency in 2020. According to an annual report by the Residential Energy Services Network (RESNET), six Minnesota builders who build more than 50 homes a year made the list of the top 20 builders nationwide with the lowest average Home Energy Rating System (HERS) Index scores.
Hanson Builders, Key Land Homes, OneTenTen Homes, Robert Thomas Homes, Lennar Minnesota and Bigelow Homes all made the list with HERS scores well below the average of 58. Five of the six builders are members of Housing First Minnesota and participate in Housing First Minnesota’s Green Path energy CONTINUED >> PAGE 12
HOUSING INDUSTRY NEWS
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