CMBA's partners at Housing First Minnesota (HFM) held their 2025 Legislative Session Wrap-Up June 3rd, even though the legislature is not quite done with its work.  The discussion focused on the current state of Minnesota's housing market and a summary of legislative efforts impacting our industry.

The wrap-up began with a look at our housing market from Kirsten Crossman who noted mortgage interest rates have stabilized between 6.5% and 7% for the past six months, extending the "golden handcuffs effect" in which homeowners are reluctant to sell due to their existing lower mortgage rates. Stubborn interest rates are contributing to a "stalemate" between buyers and sellers, both waiting for rates to improve. Crossman also noted a decline in housing construction activity, with many in the industry reporting reduced project backlogs. Single family and multi-family building permit numbers have declined compared to a year ago. Tariffs on imported materials are adding more than $10,000 to the price of each new home. Consumer confidence has also dipped to its lowest level since the early COVID-19 pandemic, further complicating housing market dynamics.

HFM Government Affairs Chair, Andrew Lejeune, reflected on the recent legislative session, noting the bipartisan support for industry-related bills and the challenges faced, particularly concerning independent contractor misclassification. HFM's Mark Foster discussed 2025 legislative efforts, including bipartisan support for the “Starter Home Act”, with lead authors Rep. Spencer Igo and Sen. Mike Howard, and emphasized the importance of industry advocacy. While lobbyists for Minnesota cities derailed much of the legislation, there was progress in some areas.

The coalition remains focused on addressing housing challenges and enhancing collaboration among stakeholders. Foster discussed the progress of a broad housing advocacy coalition in advocating for housing reforms, emphasizing the importance of collaboration among various organizations. The housing advocacy coalition's efforts have strengthened over the years, fostering trust and communication among members.

Foster noted this was a historically unique legislative session, with a tie in the House (67-67) for the first time since 1979.  He outlined the unique situation in the Minnesota legislature where the House had an early temporary GOP majority due to a Democrat member's disqualification. The Senate was in a similar near-tie situation, which led to a co-sharing agreement until the DFL regained a majority after a special election.

Presenters thanked collaborators, including CMBA, for active engagement in the legislative process, helping advance housing interests.  A delegation of CMBA members participated in Housing Day at The Capitol early in the legislative session. CMBA members also testified during bill hearings, and sent messages to key legislators. CMBA submitted and joined several letters advocating for our members on housing issues.

For more information, contact:  Steve Gottwalt, CMBA Government Affairs, 952-923-5265, steve@cmbaonline.org.

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