VOL. 4 ISSUE 2, APR. 2020
THE MINNESOTA HOUSING INDUSTRY NEWS SOURCE BY HOUSING FIRST MINNESOTA • HOUSINGINDUSTRYNEWS.ORG
Lennar sets up a handwashing station for workers.
Housing pivots in response to sudden, historic challenges COVID-19 brings complex changes to the housing industry The strong start to the 2020 housing market was swept into a sea of uncertainty as the novel virus COVID-19 bore down on Minnesota and across the world. School closures, event cancellations and the norms across all industries were impacted as this unfolded throughout late February and into March and April. COVID-19 had an immediate impact on all corners of the housing industry. The strongest spring in a decade featured a housing market with strength across the board and was buttressed by record-strong employment figures and historic interest rates. The strong momentum was changed in short-order, requiring an industry pivot to a new way of doing business for an uncertain period. “The first two months of 2020 were strong across all housing sectors, and then COVID-19 switched the focus virtually overnight,” said David Siegel,
executive director of Housing First Minnesota. Pending sales in the Twin Cities metro had reached 10-year highs in the weeks before the March pivot, a sign not only of the strength in housing demand, but also an indicator of what the near-term industry work will entail as the crisis unfolds. Questions about the industry continuing throughout the crisis were answered in Executive Order 20-2020, which designated homebuilding as a critical sector during the shelter-in-place period. “There are thousands of projects which started prior to the pivot, those projects are critical to the families of Minnesota and are carrying on this spring as an essential service,” added Siegel. The industry changes were not limited to the job sites, product deliveries and sales centers. As housing construction
was surging, the Minnesota legislature was deeply engaged in substantive debates on housing funding, permitting and zoning. As mid-March approached, that discussion quickly shifted to emergency measures to address the crisis, leaving the housing policy and funding debates for another day. “The 2020 legislature had as deep of a housing discussion as we’ve seen in years, perhaps decades,” said James Vagle, vice president of advocacy of Housing First Minnesota. “That changed quickly as legislators pivoted and put their focus on responding to this crisis.” COVID-19 brought fast changes and disruptions to real estate transactions as well. The industry norms of open houses to visit and view homes changed dramatically as the crisis emerged. Gatherings CONTINUED >> PAGE 6
INSIDE THIS ISSUE
New building code takes effect PAGE 4
Financial assistance for small businesses PAGE 11
Industry members answer the call PAGE 16
Groundbreaking housing legislation advances before Legislature takes prolonged recess The 2020 Legislation Session started unlike any other. From the moment legislators gaveled in, housing emerged as a top-tier issue, with groundbreaking legislation advancing rapidly.
A press conference was held in the early days of the session, announcing a series of proposals aimed at “Legalizing the American Dream” of homeownership. Legislative committees began hearing these and CONTINUED >> PAGE 8
HOUSING INDUSTRY NEWS
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