Minnesota’s severe housing shortage, estimated at more than 100,000 homes, was a constant refrain throughout the 2025 legislative session. Lawmakers from both parties introduced numerous bills designed to expand housing options across the state. Still, despite bipartisan support and vocal backing from advocates, none made it across the finish line.

At the center of the debate was the Minnesota Starter Home Act, a cornerstone of the broader “Yes to Homes” legislative agenda. The bill sought to enable more modest, entry-level homes by relaxing certain zoning regulations and reducing barriers to development. 

“There’s no one who can say we don’t have a problem,” said Housing Committee Co-Chair Spencer Igo (R, Wabana Township). “The bill is getting at how we used to do things . . . it is so core to what we believe in as Minnesotans and Americans.”

The bill passed out of both the House and Senate Housing Committees with bipartisan support. However, it met resistance in the House Local Government Committee, which declined to give it a hearing. An amended version was narrowly defeated in the Senate Local Government Committee in a 5–6 vote. Without strong backing from legislative leadership or Gov. Tim Walz, the remaining four bills in the Yes to Homes package also quietly stalled.

For housing advocates and supporters, the failure to act was frustrating.

“The Yes to Homes coalition is deeply disappointed by the failure of the Legislature to take action in 2025 to address the cost of homes in Minnesota,” said Anne Mavity and Cristen Incitti, co-chairs of the coalition. “We are deeply concerned and disappointed that the status quo remains when rising housing costs demand bold action.”

Lawmakers on both sides acknowledged the urgency of the crisis. Senate Housing Chair Lindsey Port (DFL, Burnsville) warned that “the dream of homeownership is vanishing for families everywhere.” Port called for changing outdated zoning laws and land use restrictions.“If we do not make meaningful reform to land use and zoning, all the money in the world is not going to fix the problem,” said Rep. Jim Nash (R, Waconia), echoing the sentiment.

“Dollars alone will not solve our housing shortage,” added Rep. Mike Howard (DFL, Richfield). “Conservatively, if we were to solve our housing shortage just with public dollars, it would cost 35 billion dollars.”

Despite increased funding for housing in this year’s budget, legislators like Igo argued that it barely scratches the surface. 

“We’re maybe going to get 1,000 homes out of what we invested today, but that isn’t even a dent at how big this problem is,” Igo said. “The elephant in the room is zoning and land use reform.”

With the session now adjourned, hopes turn to 2026. Advocates vow to return with stronger bills and an even broader coalition, while lawmakers on both sides are already crafting new proposals. Still, many fear that another year of legislative gridlock will leave more Minnesotans priced out of the housing market.

As housing prices continue to rise and supply remains constrained, the pressure is mounting. The 2026 session will be a critical test of whether political leaders are prepared to take bold action.