At least half of all owner-occupied homes financed annually through Minnesota Housing’s Impact Fund between 2018 and 2024 sold for $300,000 or less (in 2023 inflation adjusted dollars). This included 20 of the 23 homes, or 87%, closed in the 2024 program year. 

In 2023, the state legislature appropriated a large investment in affordable housing. The timing between legislative appropriation, funding selection and project completion can span several years. We expect an increase in these homes over the next several years because of the 2023 legislative appropriation.

Minnesota needs 260,000 new housing units from 2025 through 2035 across all types and price points to create and sustain a healthy housing market. This includes 195,000 units to accommodate household growth during that time and an additional 65,000 units to account for the underproduction of housing between 2006 and 2024. However, the greatest need is for housing that is affordable for low-income families. The number of homes valued at 300,000 or less (in 2023 dollars) represents the housing stock that is typically affordable (monthly mortgage, property taxes and insurance no more than 30% of adjusted income) for households that make $105,000. Housing is considered affordable if the monthly mortgage, property taxes and insurance totals no more than 30% of adjusted income. This means that a household would need at least a $105,000 income to afford a $300,000 home at current interest rates. For context, HUD reports that the statewide median family income in Minnesota was $111,700 in 2023 and a household with that income could afford a $300,000 home.

This metric captures the number of newly constructed single-family homes with closed loans funded through Minnesota Housing’s Impact Fund that were valued at $300,0000 or less (adjusted to 2023 dollars). The Impact Fund subsidizes: (1) new construction, (2) the acquisition, rehabilitation and resale of existing homes, (3) owner-occupied rehabilitation, and (4) downpayment assistance for buying a home. This metric only applies to the newly constructed homes.