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2023 Housing Leadership Summit

By MNR News posted 12-08-2023 12:00 PM

  
Minnesota’s current housing market continues to defy expectationsinterest rates are rising, but so are prices. From the standpoint of current homeowners, favorable equity gains and increased appreciation are welcome news. But it’s not so rosy for aspiring homeowners. Many would-be homebuyers are struggling to find a home due to inventory shortages and historic affordability challenges.

The data backs this up: our August 2023 housing report saw housing affordability sink to its lowest level since we’ve begun tracking the metric—just an 88 on the affordability index scale. A score below 100 means the typical family cannot afford to buy a median-priced home here in Minnesota.

Housing affordability is the most pressing issue facing Minnesota’s housing market, which is why Minnesota Realtors® sent nine staff members to the one-day Housing Leadership Summit, hosted by the Housing Affordability Institute, on Tuesday, September 26, 2023. Housing leaders from across the country gathered for a forum to discuss Minnesota’s affordable housing issues.

Setting the Stage: Why We Need Housing Reform
The day opened with a panel discussion, moderated by Housing First CEO James Vagle. Panelists included representatives from two homebuilders—one large-volume and one small-volume—and a staff member from Zillow. The panel centered on the difficulty of building homes in the $250,000–$350,000 price-range—which is where the inventory shortage is highest here in Minnesota.  

Each of the builders noted the challenges posed by various regulations—from zoning ordinances to strict building codes to aesthetic mandates. One builder, representing the large-volume company, noted that of all their regions nationwide, Minnesota is their territory with the lowest profit margins. This highlights how hard it is to build affordable housing in our state. 

Success Stories: Housing Leaders Share 2023 Housing Reform Victories
The day continued with a panel comprised of housing advocates from across the country—with leaders from Montana, California, Virginia, and Washington, D.C. sharing how they saw legislation passed in their respective states in 2023. The story out of Montana is especially noteworthy: having achieved sweeping housing reform, their 2023 success has come to be known as the “Montana miracle.” Through bipartisan support, lobbyists and legislators effectively re-wrote the state’s zoning code, allowing for mixed use multi-family and commercial spaces, duplexes in all cities, permitting accessory dwelling units (ADUs) and more.  

To achieve bi-partisan support, housing lobbyists in Montana used a “zoning atlas” to demonstrate to legislators that the zoning in Montana (prior to this reform) was closely aligned with that of the city of Los Angeles. And when it comes to housing affordability challenges across the country, L.A. is not a place anyone wants to imitate. 

Leading Journalist Lends her Voice on Housing Affordability
Jerusalem Demsas, a journalist for The Atlantic and author of the well-known piece Housing Breaks People’s Brains, covered a wide range of topics pertaining to America’s housing affordability problem. Notably, she argued that most people tend to understand the economic dynamics of supply and demand in every industry aside from housing. According to Demsas, this has led to attempts to tackle various tertiary solutions to our housing shortage, rather than simply focusing our efforts on solving the supply problem by building more housing. 

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