Minnesota home construction costs soar to $523000 outpacing neighboring states by over $100000

The Minnesota Senate Committee on Labor convened on January 21, 2025, to discuss various issues related to labor and construction codes. A significant point of discussion was the rising cost of building homes in Minnesota compared to neighboring states.

During the meeting, a committee member highlighted the disparity in home construction costs, noting that the average price of a home in Minnesota has reached approximately $523,000. This figure is notably higher than those in surrounding states, with Iowa averaging $370,000, South Dakota at $350,000, and North Dakota at $400,000. The member emphasized that homes in Wisconsin, Michigan, Illinois, Nebraska, and Kansas are all over $100,000 cheaper to build than in Minnesota.

This discussion underscores ongoing concerns about housing affordability in Minnesota, particularly as costs continue to rise. The committee did not outline specific actions or resolutions during this segment but indicated a need for further examination of construction codes and their impact on housing prices.

The meeting concluded with a recognition of the challenges faced by potential homeowners in Minnesota, setting the stage for future discussions on how to address these disparities in construction costs.