Report warns of growing housing shortage

Catch up quick: A construction boom helped the Twin Cities surpass the 18,000 threshold each year from 2019-2022, but production has fallen short the last three years.

Why it matters: The Minneapolis Fed says this, along with lagging production of income-restricted housing, risks eroding the Twin Cities' standing as a relatively affordable metro for housing.

• The Fed says the Twin Cities has a lower rental vacancy rate than most of its peer cities, and there are signs that rents are outpacing income growth here.

The big picture: Developers say a mix of high construction costs and interest rates, coupled with slow rent growth in recent years, has made building apartments difficult financially, though single-family production has fared better.