Making Homes Affordable Again (MHAA)

February 10, 2020

In 1950, a home buyer could get a new home in St. Louis Park with 3 beds, 1 bath, 1000 square feet, unfinished basement, no garage, adjusted for inflation, $90,000.   In 2020, the average new home in south Minneapolis is 4 beds, 4 baths, 2800 square feet, two car garage, $619,000.  We could make homes a lot more affordable if we built smaller houses.  We can start building 3 beds, 1 bath ramblers again, but the incentive is to build bigger. We can change that by providing $20,000 tax credits to any American that builds a home 1200 square feet or less.  This would encourage people to build smaller homes.  As a result, we would have more affordable housing; If the new homes are energy efficient enough to pass the Zero Energy Homes program, then there would be another $10,000 tax credit.  You could stack both credit and build a 1200 square foot or less rambler that is Zero Energy certified and get $30,000 in tax credits.