(Editor’s Note: The following article was submitted by the Rep. Shane Mekeland Team).

Homeownership is a major factor in building strong families which, in turn, build strong communities.

Unfortunately, our state’s excessive regulatory and permitting policies continue choking families out of the market as Minnesota has fallen far behind our neighboring states in terms of housing affordability.

A recent Star Tribune article provided sobering details of how current housing policies are causing adverse impacts to housing affordability and access. It reports a median home price in the Twin Cities now tops $350,000.

A report from the Housing Affordability Institute indicates up to one-third of a new home’s price in the Twin Cities comes from regulation and local policies. So, if you build a $300,000 home, $100,000 of your hard-earned dollars will go toward expenses mandated by state and local policies. A new home in the Twin Cities costs up to 25 percent more than a similar home built by the same builder in the southwestern Chicago suburbs, a difference of $82,000, the HAI says.

Homes may be a bit more affordable out here in Greater Minnesota, but the point remains the same: Families, especially younger ones, are being priced right out of the market as moderately priced single-family homes vanish from the landscape. 

We face a significant shortage of workforce housing at a time good jobs remain unfilled. It’s hard to attract able workers to our area if there is a lack of affordable homes. (Our dwindling number of childcare providers, also partly due to overregulation, is another major problem which needs to be addressed.)

The kicker? The Legislative Commission on Housing Affordability, to which I was appointed, has not met in 18 months. We have not received a response to a recent request to schedule a meeting.

Meanwhile, I created a study group on affordable housing and plan to meet during the interim. We need corrective action before bad becomes worse with the steady stream of unhelpful proposals coming our way.

For example, one bill introduced this year applies a “park dedication fee” to new houses. Another bill assessing an estimated $8,000-$10,000 to construction costs per rooftop to fund potential future roadwork via street impact fees was authored.

Ill-advised bills such as these help to explain how we got where we are today. And that doesn’t even account for the more hidden added costs to consumers such as homeowners insurance, property taxes, etc., that also rise right along with higher construction costs.

This omnibus housing bill which was enacted this year did nothing to address the cost drivers behind the rising price of homeownership. It focused more on policies related to eviction and homeless shelters. Those issues may have warranted attention, but there certainly was time to tackle affordability.  

Legislation to bring zoning reform, reduce state mandates that are handcuffing local governments, and streamline regulations that nickel and dime our market to unaffordability was not enacted. I personally have been working on legislation to mitigate our workforce housing shortage.

I will continue supporting policies that incentivize affordable homes while pushing back against burdensome regulations that only make our situation worse. I am honored to have recently received a 2021 Housing Leadership Award from Housing First Minnesota for my efforts on this front.

This is a battle I will continue fighting on behalf of local families. But we need to stop talking about this problem and start working on solutions in earnest.