As Central Minnesota grapples with a growing housing shortage, local communities are turning to the Central Minnesota Builders Association (CMBA) and its members for solutions. With tens of thousands of housing units needed to meet current and projected demand, city leaders and industry professionals are working together to break down barriers to development and spur new home construction.
Recently, CMBA convened with mayors from six area cities, including five newly elected leaders, to discuss the challenges facing residential development. The mayors welcomed the opportunity to collaborate with developers, builders, contractors and Realtors, recognizing the need for a united effort to address the housing gap.
One key issue raised by CMBA members is the high cost of land development. Before a single home can be built, it costs between $70,000 and $100,000 to develop a single residential lot, making affordability a significant hurdle. Industry experts also pointed to local regulatory obstacles that complicate platting and development, further slowing the process.
One potential solution discussed was the idea of cities reclaiming their historical role in funding upfront infrastructure extensions for new developments. Instead of placing the burden on developers to finance roads, sewer and water services before construction even begins, municipalities could invest in infrastructure expansion to accelerate growth and lower costs.
Mayors agreed to hold quarterly meetings with CMBA to continue these discussions and work toward actionable solutions. The collaboration is expected to help streamline development, reduce financial burdens and ultimately make housing more accessible and affordable in the region.
Beyond its efforts with city leaders, CMBA is also engaged in a regional workforce affordable housing initiative led by St. Cloud’s largest employer, CentraCare. The organization recently hosted a Builders’ Roundtable focusing on local regulatory reforms and will co-host the second annual Regional Housing Summit in late April at St. Cloud State University. The summit will bring together policymakers, industry leaders and stakeholders to further tackle the housing crisis.