[{"_1":2,"_76":-5,"_77":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6325025,"mediaKeyId","2335121-d8907e860cea73f270d9ac8dc6422d6b","parentId",2335121,"title","Minnesota Realtors tell House Finance committee state faces chronic housing shortage; inventory must at least double to rebalance market","audioSeconds",4067,"startMs",60000,"endMs",4127000,"viewUrl","/Search/View?dp=1&key=2335121-d8907e860cea73f270d9ac8dc6422d6b&start=60&end=4127","thumbnailUrl","https://assets.pipeline.soar.com/2335121-d8907e860cea73f270d9ac8dc6422d6b/thumbnail_60000.jpg","articleUrl","/articles/6325025/Minnesota/Minnesota-Realtors-tell-House-Finance-committee-state-faces-chronic-housing-shortage-inventory-must-at-least-double-to-rebalance-market","mediaUrl","https://secure.pipeline.soar.com/6325025-8b9e1dd0ce908f61db41a6bb02d0e59c/orig.mp4?Expires=1771125891&Signature=nL0Zxpreq94bNk1r5V6brfpdwvfi3oBazEMzIpQmalDjTP5nmW0Tgi3HvzvrNJK0jjocqMN-vp6m0mg078ye2yVm2eYcKN7us5FJs5tIGMw~qPUr0ehKTp9TrHQvxaybC3jGBagjgBCR~FMfmmck6-BDGeGbWmmyeO~wmuTBQ73D4q19iZPzRfvr5-GjxejG26fTnqDqfNfe1qe3XqmT7s7fNcd5ECtc~L0v-QT0bw9GbMS7QarJydvL1yeh2KduNz2SbdL8J5ZF35iL59vphqCjgMqMhuaOJBOTUOpI1W5TE8ohs1-dGkhDLsHpxOnogqVwzSxYaJRY1QIUz0aNrQ__&Key-Pair-Id=KUT5TJCACFTXG","author","MNHouseInfo","date","2025-02-18T00:00:00Z","article","Minnesota Realtors officials briefed the Minnesota House Committee on Finance and Policy on housing-market data on Oct. 12, 2025, saying the state remains sharply undersupplied and that increasing housing production across price bands is the primary lever to restore affordability.

The Minnesota Realtors presentation, delivered by Paul Leger, senior vice president of governmental affairs, and David Arbitt, director of research, set out statewide metrics including active listings, months of supply, median sales price and buyer/seller activity. \"There's not enough of it,\" Arbitt told the committee, summarizing what the association’s data show about available inventory.

Why it matters: Committee members said the numbers underline legislation they plan to consider this session to increase housing supply and address affordability. Presenters warned that low inventory plus higher mortgage rates have pushed monthly payments and household budget pressures up, and that without significant new units the market will remain tilted toward sellers.

Key findings and context

- Inventory and months of supply: Arbitt said statewide active listings fell from a pre-COVID peak of roughly 16,000 homes to about 8,000, then have climbed back to roughly 11,000–12,000 — still far below historical levels. The state finished last year with approximately two months of supply (about 2.1 months), while a balanced market is generally considered five to six months of supply.

- Units needed to rebalance the market: Minnesota Realtors estimated the state needs roughly a 50%+ increase in total housing units to reach a balanced market overall, and about 4,600 additional units in the $300,000–$400,000 price band alone to reach balance in that popular first-time-buyer range.

- Price and payment pressure: Median sales price across the state was roughly $345,000 at the end of last year; the typical monthly payment (PITI — principal, interest, taxes and insurance) on the median-priced home was cited at about $2,550 statewide and about $2,800 in the Twin Cities metro. Arbitt told the committee that several factors have pushed monthly mortgage costs up by roughly $900–$1,000 compared with a few years earlier.

- Buyer activity and affordability: Arbitt said showing activity is highly rate sensitive and that more than two-thirds of outstanding mortgages are financed below 4 percent nationally, a lock-in effect suppressing seller listings. He also cited the association’s affordability index at about 93, meaning median income in Minnesota is about 7 percent lower than the income needed to qualify for the median-priced home under a 30-percent-of-income rule.

- Market segmentation: Sales under $300,000 once made up the large majority of transactions but have fallen sharply; Arbitt said sales under $300,000 now represent roughly 26 percent of transactions while million-dollar-plus sales have risen from about 1 percent to roughly 3.5 percent of the market.

Committee exchange and next steps

Committee members asked about the geographic distribution of new population and housing demand, differences between metro and Greater Minnesota, the quality and condition of units coming onto the market, and tax and insurance impacts on monthly payments. Arbitt and Leger answered data questions and committed to provide the committee with the full slide deck and additional charts the presenters used during the briefing.

No formal committee action or votes were taken during the meeting. The committee chair said members will follow up with the presenters and pursue policy options during the legislative session; presenters said Minnesota Realtors will work with committee members and staff on data and solutions.

Quotes

\"There's not enough of it,\" David Arbitt, director of research for Minnesota Realtors, said of housing inventory during his presentation.

\"We look forward to working with all members of this committee,\" Paul Leger, senior vice president of governmental affairs for Minnesota Realtors, said in closing.

Ending

The data presented emphasized persistent undersupply in both metro and Greater Minnesota and focused committee attention on housing production as the central policy lever. Committee members asked for more regional and parcel-level detail; Minnesota Realtors agreed to provide the committee slides and follow-up data to support forthcoming legislation this session.","mediaType","Video","parentTitle","House Housing Finance and Policy Committee 2/18/25","oneSentenceSummary","Presenters from Minnesota Realtors told the House Committee on Finance and Policy that the state remains undersupplied, with roughly two months of inventory statewide, sharp shortages in entry-level price bands, and an estimated need for roughly 4,600 additional units in the $300,000–$400,000 range to reach a balanced market.","taxTitle","2025 Legislature MN, Minnesota","taxId",77817,"location","Minnesota","headline","","shortSummary","actionData","errors"]

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Minnesota Realtors tell House Finance committee state faces chronic housing shortage; inventory must at least double to rebalance market