ISSUE 2

There is an Inventory Shortage

There are not enough homes available to meet demand, especially at the most affordable price points. Lack of inventory to meet demand means prices are rising and pressuring individuals and family budgets.

The Inventory Shortage is Serious:

• Statewide, there is a two-month supply of homes on the market, with some areas having even less inventory (five- or six-months supply is considered healthy)

• Lack of inventory is driving up prices to new highs

• In 2019, the median sales price statewide was $254,000, up 5.9% from 2018 and up 23% from 2015.

• The Twin Cities median sales price was $280,000, up 4.5% from 2018 and up 27% 2015.

• Builders cannot ease the inventory shortage, especially at the lower price points.

• There are dozens of barriers to building affordable new homes.

The Legislature should consider and advance policies that would result in the creation of more housing inventory overall, especially at the more affordable price points.