Minnesota

Summary

Minnesota state is facing challenges to housing affordability. For every 100 low-income renter households, there are 69 units available that are affordable to them. The median household income in the state is $43,661 whereas the median rent in the state $972. Currently, the state is short over 46,788 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.

27.7%

share of renter households

40.5%

share of low-income households

43.6%

share of rent-burdened households

Renter population data

Rent-burdened households

Affordable housing shortage

Finance institutions

Minnesota Housing

Minnesota Housing 400 Wabasha Street N, Suite 400
St. Paul, MN 55102

• Economic Development and Housing Challenge (EDHC) Program
• HOME Investment Partnerships (HOME) and National Housing Trust Fund (NHTF) Combined Program Guide
• Housing Infrastructure Bonds (HIB)

Housing news

How Fed Rate Cuts Impact the Housing Market

The Federal Reserve’s recent rate cuts will influence the housing market, but the effects won't be immediate. Although lower rates make borrowing more affordable, ongoing housing shortages will remain a tough obstacle.

Key Takeaways:

• Lower Mortgage Rates: Fed rate cuts have reduced the average 30-year mortgage rate to around 6.2%.
• Home Sales: As rates decline, more homeowners might be encouraged to sell.
• Ongoing Supply Issues: Housing supply shortages will persist, especially in high-demand areas.

Housing market won’t come ‘unstuck’ until 2026, economists predict

Bank of America economists predict the US housing market won't recover until at least 2026, with home affordability improving only with a recession.

States With the Largest Homeless Populations

In 2023, the number of homeless individuals in the U.S. reached approximately 653,000, marking a 12% increase compared to 2020.

Shortage statistics for ELI & VLI renters

S&D ratio = Supply & Demand Ratio

List of counties