The Minnesota Metropolitan Council convened on July 25, 2025, to discuss critical housing trends and demographic shifts impacting the region. The meeting focused on three primary factors influencing housing dynamics: housing production, occupancy rates, and household sizes.

The council highlighted that housing production has significantly increased, with an average addition of approximately 21,000 housing units per year from 2020 to 2024. This figure is nearly double the average annual production from the previous decade. Despite this growth, the council noted a concerning trend: the number of vacant units has also risen, particularly in the multifamily sector. Since 2020, over 84,000 housing units have been added, while only about 64,000 new households have formed, resulting in a net increase of 20,000 vacant units. Consequently, occupancy rates have declined from 95.7% in 2020 to 94.5% in 2024.

Council members expressed a need to reconcile these statistics with the prevailing narrative of a housing shortage. Some members pointed out that while production is up, the increase in vacancies contradicts claims of a severe housing crisis. They emphasized the importance of understanding the demand side of housing, particularly regarding affordability and the types of units available.

The discussion also touched on demographic changes, noting that the region's growth has been largely driven by foreign-born populations rather than natural increases from birth rates. As immigration policies become more restrictive, the council anticipates a potential slowdown in population growth, which could further impact housing demand.

Additionally, the council observed a trend of smaller household sizes, with the average size decreasing from 2.503 in 2020 to 2.445 in 2024. This change is attributed to factors such as falling birth rates and an increase in empty nest households as children move out.

Overall, the meeting underscored the complexity of the housing market in the region, highlighting the need for nuanced understanding and strategic planning to address both current and future housing challenges. The council plans to continue exploring these issues in future discussions, aiming to align housing production with actual demand and demographic trends.