Minnesota expected to adopt building code that would cut energy use by 80%

Minnesota Gov. Tim Walz is expected to soon sign a bill that would change the state’s commercial building code so that new structures would use 80% less energy when compared to a 2004 baseline standard.

The legislation aims for full implementation of the new code by 2036. The bill had been debated for several years before clean energy groups, unions, utilities, and industry representatives coalesced to support it this legislative session.

Minnesota’s commercial code covers larger multifamily projects but not single-family homes or smaller residential properties. Upgrading commercial energy codes is expected to unlock federal aid for state energy efficiency initiatives.

The legislature is also considering numerous climate and clean energy proposals that include major investments in weatherization, public transit, and electric vehicle incentives.

Across the country, multifamily rents have skyrocketed. Year-over-year rents are up by double digits in nine of the top 30 markets, while national YoY rent growth is up 6.3%. Emerging from the pandemic, a perfect storm of migration, enhanced government stimulus and a hot housing market, among other factors, has enabled this extremely strong growth.