Nikki Foley:
Housing impacts nearly every part of our financial lives, yet most people only think about it when they’re buying or selling a home. The reality is housing affordability, inventory, regulations, and community planning all shape long-term financial stability. So, what’s driving Minnesota’s housing challenges, and what happens if we don’t solve them?

Welcome to Paladin Financial Talk. I’m your host, Nikki Foley, and I’m joined by featured guest Mark Foster of Housing First Minnesota.

Housing First Minnesota is Minnesota’s trade association for residential builders, remodelers, developers, and building industry suppliers. The organization brings the housing industry together to advocate for housing, homeownership, and building safe, durable homes at prices Minnesotans can afford.

Welcome, Mark. We’re so glad you’re joining us today.

Mark Foster:
Thanks for having me. I’m looking forward to the conversation.

Nikki Foley:
Mark, you’re the Vice President of Legislative and Political Affairs for Housing First Minnesota, and you’ve been doing this work for more than a decade. Tell me a little bit about yourself, your world, and why you’re so passionate about this work.

Mark Foster:
I think it’s a great cause. We’re advocating for the next generation of homebuyers to have a chance to buy a home. We’re advocating for property rights, for ownership opportunities, and for housing options for people across the state.

I’ve been with Housing First Minnesota for over 10 years, and it’s been incredibly rewarding advocating for homebuyers and opportunities in Minnesota.

Nikki Foley:
And you just came off the legislative session, so when we say you’re in the mix of this, you’re really spending time in St. Paul helping shape policy and conversations around housing. Is that fair?

Mark Foster:
Yes, absolutely. Session just wrapped over the weekend. It was active and busy, as most sessions are, but overall it was a good session for the housing industry.

Nikki Foley:
As we get started, Mark, this is a financial planning podcast, so someone may wonder why we’re talking about housing in relation to retirement and financial planning.

Most people think about retirement planning in terms of 401(k)s, Social Security, or investments, but one of the largest — and often overlooked — pieces of someone’s financial picture is housing and the role it plays in long-term financial stability.

Through this series, we’re bringing industry leaders together to discuss what’s happening in housing, real estate, and the broader financial landscape. Today, we want to explore the challenges Minnesotans are facing related to housing, the role your organization is playing, and ultimately why this conversation matters to individuals and families.

So let’s dive in. What are some of the biggest housing challenges Minnesotans are facing right now?

Mark Foster:
The biggest challenge is actually pretty simple: Minnesota does not have enough homes at price points people can afford.

That shortage shows up in many ways — higher rents, higher home prices, fewer starter homes, and fewer downsizing options for seniors.

We’re dealing with the ripple effects of higher interest rates, construction costs, labor shortages, infrastructure costs, insurance costs, and ultimately regulatory and policy expenses that continue to increase the cost of housing.

At the end of the day, affordability is really a supply and demand issue. When we don’t build enough housing, prices rise and options shrink.

Nikki Foley:
Those challenges feel enormous, and yet you still identified policy and regulation as a major driver, which honestly isn’t something many people think about.

Is this affecting certain groups more than others?

Mark Foster:
Yes. First-time homebuyers and working families are probably hit the hardest because they don’t have existing home equity to build on.

At the same time, retirees and older adults are facing a different challenge — they want to downsize or move into lower-maintenance homes, but there simply aren’t enough affordable options available.

Nikki Foley:
We were talking before the show about how people assume downsizing automatically means spending less money, but that’s not always the reality anymore.

With all these obstacles, are you optimistic that we’ll see movement toward more affordable housing?

Mark Foster:
I am optimistic. Housing affordability and the housing shortage have become top-tier issues for voters and policymakers.

We’re seeing a growing coalition of groups — many of whom disagree on almost everything else — come together around housing. That coalition is called the “Yes to Homes Coalition,” and it includes voices across the political spectrum advocating to remove barriers to building housing.

There are bipartisan lawmakers and local leaders working on solutions, and that’s encouraging.

Nikki Foley:
That really is encouraging. So what specifically is Housing First Minnesota doing to address these challenges?

Mark Foster:
Housing First Minnesota represents the builders, remodelers, and developers who are actually bringing housing online. Our core goal is creating housing opportunities for Minnesotans at every stage of life.

A big part of our work is bringing together builders, local leaders, and policymakers to have practical conversations about increasing supply and improving affordability.

At the Capitol, I lead our lobbying efforts to support policies that reduce unnecessary barriers to building homes.

That includes streamlining approvals, improving opportunities for starter homes, expanding housing choices, and reducing regulatory costs that ultimately get passed on to consumers.

Many regulations were created with good intentions — safety, infrastructure, quality of life — but over decades, layer after layer of requirements have significantly increased housing costs.

Now policymakers and communities are starting to ask: Do we really need all of these requirements, or can we pull some back to help create affordability?

Nikki Foley:
It almost reminds me of the tax code — layers continually added over time without much being removed.

Are there examples of regulations or policies that unintentionally increase housing costs?

Mark Foster:
Absolutely. For example, some communities require three-car garages as a baseline standard.

Builders are happy to build three-car garages if buyers want them, but requiring that as the minimum standard significantly increases costs through additional land, labor, and materials.

Another example is design aesthetic standards — certain siding materials or exterior upgrades that can add tens of thousands of dollars to the price of a home.

By the time you combine those requirements, you could be increasing the price of a home by $50,000 to $60,000, which can determine whether a young family or single-income buyer can afford the home at all.

We believe those should be choices made by buyers, not mandates from city hall.

Nikki Foley:
That really helps bring the issue to life.

You also mentioned the Minnesota Starter Home Act earlier. What are some of the legislative priorities being discussed right now?

Mark Foster:
The Minnesota Starter Home Act includes provisions to reduce some design mandates, allow more flexibility with lot sizes, and encourage more attainable housing options.

Interestingly, many homebuyers today actually want smaller lots. They don’t necessarily want large lawns to maintain or extensive snow removal responsibilities.

We also have national builders who build excellent one-car garage products across much of the country, but in many Minnesota communities they can’t build those homes because local requirements don’t allow it.

Nikki Foley:
Why is Minnesota different in that regard?

Mark Foster:
Part of it is simply that communities become accustomed to things staying the same.

There’s often resistance to change — whether that’s adding housing, allowing duplexes, or developing farmland into neighborhoods.

But communities grow and thrive when families move in. New housing supports schools, tax bases, businesses, and long-term vitality.

The challenge comes when communities start micromanaging what every home must look like or include.

Nikki Foley:
One of the things I love about Minnesota is that people stay here and often come back after leaving. But sometimes that same attachment can also create resistance to change.

It sounds like your role is helping communities stay open-minded and focused on long-term affordability and opportunity.

Mark Foster:
Exactly. Ultimately, we’re advocating for a healthy housing market with options for people at every stage of life.

I often ask older generations: Could you afford your home today? And do you want your kids and grandkids to be able to live in the same communities they grew up in?

To make that possible, we need more housing choices — duplexes, accessory dwelling units, multifamily housing, townhomes, and starter homes.

Nikki Foley:
What’s the worst-case scenario if we don’t address these issues?

Mark Foster:
Look at the coasts — California and parts of the East Coast.

In many of those places, teachers, nurses, firefighters, and middle-income workers can no longer afford to live in the communities where they work.

Minnesota isn’t there yet, thankfully, but we are facing serious affordability challenges compared to many Midwestern peers.

We still have time to fix it, but we need to act intentionally.

Nikki Foley:
That really highlights why these conversations matter.

As homeowners, people love seeing their home equity grow, but if housing costs rise too aggressively, future generations lose the opportunity to establish roots and build wealth through homeownership.

Mark Foster:
Exactly. Homeownership is one of the most important wealth-building tools people have.

Beyond equity, it also provides stability, community roots, and long-term security.

Nikki Foley:
Let’s shift a little toward aging populations. Minnesota is aging rapidly. How does housing play into that?

Mark Foster:
There’s growing demand for accessible, lower-maintenance housing options located near healthcare, shopping, and family support systems.

Builders recognize that demand, but there are still barriers to building enough of those products at attainable price points.

Many older homeowners are also staying in their homes much longer than they used to, which affects overall housing availability and movement throughout the market.

Nikki Foley:
That aligns with what we hear from clients. Most people want to age in place and remain in their homes and communities as long as possible.

Do you think Minnesota currently has enough housing to support the aging population?

Mark Foster:
No, not currently.

Minnesota has an estimated housing shortage of roughly 100,000 units across all housing types — senior housing, rentals, single-family homes, townhomes, everything.

That shortage impacts the entire housing continuum.

Nikki Foley:
As we look ahead, what should everyday Minnesotans be paying attention to?

Mark Foster:
First, try to put yourself in the shoes of today’s homebuyers — whether it’s your children, grandchildren, or younger generations entering the market.

Pay attention to conversations happening in your community around zoning, permitting, and new housing developments.

When new housing is proposed, understand that it could represent future opportunities for your family or your neighbors.

Housing has become one of the top issues for Minnesotans. Ten years ago, it barely registered in public polling. Today, it’s a major statewide conversation.

Nikki Foley:
What I hear you saying is this: Come into these conversations with an open mind. Consider perspectives beyond your own, and understand that thoughtful change may be necessary to keep communities healthy and affordable.

Mark Foster:
Exactly. More housing options, faster approvals, and more attainable price points ultimately benefit all of us and help create a healthier housing market in Minnesota.

Nikki Foley:
And from a financial planning perspective, housing makes up a huge portion of most people’s overall net worth alongside retirement accounts and investments.

If we aren’t thoughtful about affordability and housing access, that piece continues consuming more and more of someone’s financial future.

Do you have any resources you’d recommend for listeners who want to continue learning?

Mark Foster:
Absolutely. I’d encourage people to visit Housing First Minnesota at housingfirstmn.org to learn more about housing issues, legislation, and market updates.

I’d also encourage people to learn more about the Yes to Homes movement and get involved in conversations around housing in their communities.

Nikki Foley:
We’ll make those resources available on our website at paladinfinancialtalk.com.

We’re also offering a downloadable resource called “Should I Pay Off My Mortgage Early?” — a flowchart designed to help people think through mortgage decisions and the role housing plays in their financial picture.

If you’re listening today and this conversation resonated with you, visit paladinfinancialtalk.com to schedule a 15-minute no-obligation conversation about how housing fits into your overall financial plan.

You can also follow us on YouTube, Facebook, Instagram, LinkedIn, and more.

Mark, any final thoughts before we wrap up?

Mark Foster:
Housing and homeownership are critical to Minnesota’s future.

I believe we’ll figure this out. It may take time, but people increasingly recognize the importance of housing, affordability, and keeping Minnesota a place where families can thrive.

Communities grow stronger when people can move in, establish roots, and build a future.

Nikki Foley:
Thank you for the work you’re doing and for joining us today, Mark.

And thank you to everyone listening. We’ll see you next time on Paladin Financial Talk.