Minnesota Saw Record Decline in Homeownership in 2024
Contact: Kristen Crossman
St. Paul, Minn. – After the largest single-year decline in homeownership in four decades, housing economist Elliot Eisenberg, Ph.D., finds Minnesota’s housing shortage and the unresolved high cost of construction are contributing to a homeownership decline in Minnesota. Minnesota’s Homeownership Challenge: Undersupply, High Prices, and Competitive Disadvantage from Housing Affordability Institute examines several years of housing data to explore why.
“Minnesota’s growing housing deficit and high new housing costs are a cautionary tale,” said Elliot Eisenberg, Ph.D., housing economist and report author. “Without action, limited supply and high prices will erode the state’s economic foundation. A responsive housing market—one that encourages new construction and reduces barriers to affordability—is essential to sustaining Minnesota’s growth, competitiveness, and ability to attract the next generation of Minnesotans.”
Highlights:
- Last year, Minnesota’s homeownership rate declined to 71%, down 300 basis points. This decline is the state’s largest on record (40 years of U.S. Census data).
- Minnesota is no longer the region’s leader in homeownership.
- The state’s housing deficit was estimated in 2024 to be 98,000 units, three-quarters of which are located in the Twin Cities area.
- Despite the growing need for new housing, permits are declining, down 35% statewide (2021-24) and down 43% in the Twin Cities (2021-24).
- In the upper Midwest, Minnesota has the highest median cost of new and existing single-family homes.
Report Conclusion: Minnesota’s housing market cannot self-correct; encouraging new construction and removing barriers to affordability will be essential to sustaining Minnesota’s growth, competitiveness, and appeal for future generations.
“This report highlights the consequences of not addressing the housing crisis,” said Nick Erickson, executive director, Housing Affordability Institute. “Minnesota’s distinction as the highest-cost housing market in the Midwest, combined with a shortage of new homes, is pushing homeownership further out of reach for future generations. At the same time, the lack of supply is limiting economic growth, costing the state jobs and billions of dollars in activity.”
This report is part of Housing Affordability Institute’s efforts to promote homeownership. Learn more.
About Elliot Eisenberg, Ph.D.
Elliot Eisenberg, Ph.D., is an internationally acclaimed economist, and public speaker. He earned a B.A. in economics with fi rst-class honors from McGill University in Montreal, as well as a master’s and Ph.D. in public administration from Syracuse University.
Dr. Eisenberg is the former senior economist with the National Association of Home Builders. His research andopinions have been featured in Bloomberg, Business Week, Bureau of
National Affairs, Forbes, Fortune, among other publications.
About Housing Affordability Institute
Housing Affordability Institute is a 501c(3) think tank seeking to increase housing affordability and access while advancing homeownership opportunities for all. Housing Affordability Institute produces industry-leading research and commentary on homeownership and the cost drivers behind our growing affordability challenges.