The CEO of the Minnesota Multi Housing Association, Cecil Smith, believes that the recent jump in evictions in January may not necessarily indicate a trend for the future. He pointed out that most eviction cases result in repayment plans rather than someone losing their home, and local governments have not yet received a full year of funding from the new sales tax. Smith also mentioned that recent wage growth has outpaced rising rents, and Minnesota’s per capita eviction rate is relatively low compared to other parts of the country.
In 2023, Democrats in control of the Minnesota government passed a two-year budget with $1 billion in mostly one-time housing aid and implemented a new 0.25% sales tax that generated nearly $65 million last year for housing. This funding provided significant support for households struggling with rent, helping many weather the end of the pandemic eviction moratorium. However, the money is running out, with Hennepin and Ramsey counties seeing available rental aid cut in half since the moratorium ended in 2022.
Smith emphasized the need for more data before concluding that there is a concerning trend in evictions. He highlighted that Minnesota is a low eviction state compared to others and suggested that the state’s strong eviction prevention efforts and financial aid programs have helped mitigate the impact of the pandemic on renters.
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