Greater Minnesota’s workforce housing market is broken. In most communities, a typical worker earns too much money to qualify for government assistance programs but cannot afford to build a new home on their own. They cannot access private capital because the cost to build a new home is more than the house will appraise for once it is built. The high construction costs of multi-family rental units often require rents that exceed the housing affordability benchmark of 30% or less of a household’s income.
These factors are further complicated by lower wages that produce prevailing rents that do not justify private development of new multi-family units due to concern that their investment will not find enough tenants who can afford the new units. Collectively, construction costs, financing challenges and prevailing rents do not produce enough replacement units to our aging housing stock and thereby threatens our communities’ long-term tax base and ability to supply workers to our businesses for economic growth.
In order to increase the housing stock throughout Greater Minnesota available to our workforce, the GMNP supports investments and regulatory reforms that aim to reduce the private market cost of developing new affordable and market rate housing and revitalize existing housing. Additionally, GMNP supports investments that will increase opportunities for senior citizens to access housing that meets their care and life needs.
Other Resources/Informational Handouts
- Help alleviate Greater Minnesota’s housing shortage (GMNP/CGMC handout)
- Wanted: Child care facilities in Greater Minnesota (GMNP/CGMC handout)
- Workforce Housing Development Program
Bills to Watch
- HF 619/SF 752 – Workforce housing projects maximum grant or loan amount modification; appropriation
- HF 1916/SF 1904 – Housing rehabilitation outside of the seven-county metropolitan area funding provided, and money appropriated.
- HF 430/SF 1903 – Greater Minnesota housing infrastructure grant program funding provided, bonds issued, and money appropriated.
- HF 337 – House capital investment bill