Responding to the Legislative Auditor's report released Tuesday, which shows rents and housing rising much faster than income, some said they want more government involvement, especially subsidies and tax breaks for renters and builders. But, he said, he could understand if builders want to be released from some cities' requirements, such as using expensive brick or providing underground parking.
Property taxes are probably the biggest impediment that they face.
In a report done for the survey, developers and local housing organizations called new government financing extremely important, while builders thought it would be more helpful to be able to build smaller homes on less expensive land. The subject is difficult to sort out because the issues are complex and interrelated, said deputy legislative auditor Roger Brooks. The report, requested by the 2000 Legislature, says Minnesota's rental vacancy rate is the third lowest in the country. The change would propel builders to construct more apartments, and a bigger supply would hold down rents, said Jenny Engh, assistant state revenue commissioner. If there isn't affordable housing for workers in starting-wage jobs, that scares away prospective businesses, she said.