ST. PAUL, MN – Minnesotans pay far more to build a new house when compared to homeowners in other states. These are the findings by the Housing Affordability Institute from its new report: The True Cost of Minnesota’s Broken Housing Market.
State Representative Kristin Robbins, R-Maple Grove, said the news is troubling but she hopes that bringing it to light will lead to changes that increase affordability.
"This report shows regulations in our state are putting a strain on Minnesota families by artificially increasing the costs of building a home," said Rep. Robbins. "While Minnesota is a great place to live, there is simply no reason a new home should cost tens of thousands of dollars more in Minnesota than it does in Wisconsin. We need to address the regulatory issues that are making home ownership out of reach for too many Minnesota families."
The report detailed numerous land and regulatory policies that are driving up costs for new home construction in Minnesota, resulting in homes costing tens of thousands more in Minnesota than in Wisconsin and other surrounding states. One example found that the same home in Lake Elmo, Minnesota costs $47,000 more than an identical home in Hudson, Wisconsin, just ten miles away.
According to the report, virtually every requirement in our region costs more than our Midwestern peers: Met Council growth boundary policies, infrastructure upgrade costs, stormwater regulation, building code, energy code, park dedication requirements, sales tax, permits, water/sewer connections, zoning requirements, escrows, and more.
The Housing Affordability Institute is a housing policy organization founded in 2018 by Housing First Minnesota. Its goal is to produce quality, informative research on homeownership and the cost drivers behind our growing affordability challenges.
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