On Tuesday, March 11, the Senate Housing and Homelessness Prevention Committee heard legislation championed by Senator Jordan Rasmusson (R-Fergus Falls) and a bipartisan group of legislators to address Minnesota’s rising housing affordability crisis. The “Minnesota Starter Home Act” (SF 2229) focuses on increasing the supply of starter homes by removing regulatory barriers that drive up construction costs.

“In Minnesota, the median cost of a new single-family home is over $540,000, putting homeownership out of reach for many hardworking Minnesotans,” Sen. Rasmusson said. “That is why I am joining a bipartisan group of legislators to champion the Minnesota Starter Home Act. By cutting red tape, we can empower the free market to build more affordable homes and give first-time buyers a fighting chance.”

Minnesota faces a severe housing shortage, with a deficit of over 100,000 homes and 600,000 Minnesotans classified as cost-burdened—spending more than 30% of their income on housing. The average age of a first-time homebuyer has climbed to 38 years old, an all-time high. Additionally, eviction filings have surged, and not a single county in the state has a median-priced home affordable to a Minnesota family earning the median income.

To address these challenges, the Minnesota Starter Home Act proposes reforms to remove unnecessary regulatory restrictions, such as excessive lot size requirements and costly aesthetic mandates, which inflate building expenses. By streamlining these regulations, the legislation would increase the supply of starter homes in areas already served by city water and sewer infrastructure.

“The Minnesota Starter Home Act draws inspiration from successful housing reforms in other states,” Sen. Rasmusson added. “By focusing on market-driven solutions, we can help aspiring homeowners and young families achieve the dream of buying their first home.”

The Minnesota Starter Home Act passed out of the Housing Committee with bipartisan support, and it now moves to the State and Local Government Committee for further consideration.