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Wednesday October 4, 2023

THE MINNESOTA HOUSING INDUSTRY NEWS SOURCE BY HOUSING FIRST MINNESOTA

Tag: Inflation

  • St. Paul revisits rent control after federal lawsuit and decline in production

    St. Paul revisits rent control after federal lawsuit and decline in production

    After a citywide slowdown in housing construction and a federal lawsuit, the city of St. Paul has taken steps to amend the city’s voter-approved rent-control ordinance that took effect in May. In November 2021, St. Paul residents approved the nation’s strictest rent control measure. St. Paul’s rent control policy capped rent increases to 3%, and… Read More

  • Fed raises rates by 75 basis points

    In its continued effort to fight inflation, the Federal Reserve raised the federal funds target rate another 75 basis points mid-September. This is the third consecutive increase of 75 basis points. The large hikes are sending shockwaves through the financial markets and the overall economy. Federal Reserve officials have now hinted at plans to continue… Read More

  • Housing inventory remains low even as housing market shifts

    Housing inventory remains low even as housing market shifts

    Across the country rising mortgage rates and inflation have had a stifling impact on the housing market. It is no surprise when considering that from the start of the year, mortgage rates have more than doubled, increasing from 3% in January to rates now over 6% this fall. Permits for new single-family homes have fallen… Read More

  • Inflation impact on construction materials continues

    Inflation impact on construction materials continues

    Building material costs have continued their upward surge, though the pace may be slowing. According to the Bureau of Labor Statistics Producer Price Index (PPI), building material costs are up 12% this June compared to June 2021. This represents a moderating pace of price increases, although material costs have increased 42% since January 2020. Industry… Read More

  • Wait time for new homes increases

    Wait time for new homes increases

    The timeline for new home construction is becoming noticeably longer in many parts of the country. This slowdown comes at a time when new homes are in high demand as the inventory of available homes for sale shrinks to a historic low. Almost two years of supply chain disruptions prompted by the COVID-19 pandemic caused… Read More

  • Building material costs impacted as demand falls from inflation

    Building material costs impacted as demand falls from inflation

    The price of construction materials for new homes continues to escalate going into summer. On top of already volatile supply chain effects still lingering from the COVID-19 pandemic, material costs are now starting to be impacted as inflation impacts most sectors of the economy. In 2021, the price of construction-related materials rose 15.9% throughout the… Read More

  • Consumer sentiment toward homebuying plummets

    Consumer sentiment toward homebuying plummets

    It appears rising interest rates pushed consumers over the edge when it comes to whether it is a good time to buy a home. According to Fannie Mae, the Home Purchase Sentiment Index® (HPSI) decreased by 4.7 points to 68.5 in April, its lowest level since May 2020, as surveyed consumers expressed heightened concerns about… Read More

  • Rent control policies in limbo

    Rent control policies in limbo

    Following referendums passed by both Minneapolis and St. Paul voters in November, each respective city has been navigating different paths to enacting rent control policies. In St. Paul, voters passed a very specific law that would only allow a maximum 3% increase in rent annually, but Mayor Melvin Carter and some members of the St.… Read More

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