2030 Housing Needs Assessment: Fairmont to Face Shortage Head-on

Housing inventory is limited across the United States, with the country falling short of 4.7 million units as of 2025. A lack of available housing hurts rural communities by limiting growth – new families can’t move to smaller areas if there aren’t houses, apartments, and other places to live.

The City of Fairmont, Minnesota, isn’t exempt from this crunch. However, it is determined to face any housing limitations head-on and develop solutions to support current and future residents. The City recently hired Bowen National Research to evaluate housing needs and create a forecast for 2030.

“There’s no point hiding from a housing shortage,” says Ned Koppen, Economic Development Coordinator for the City of Fairmont. “If we want residents to have the amenities they need and job opportunities for career growth, we need to start by putting roofs over their heads.”

The Housing Needs Assessment was published in the fall of 2026 and was recently presented to the city council. Here’s what residents need to know about housing demand in Fairmont – and how the Economic Development Authority is brainstorming solutions. 

Fairmont is Expected to Fall Short of 434 Housing Units

The results from Bowen National Research found Fairmont needs 434 additional housing units to keep up with growth demand over the next five years. These include 264 rental units and 170 for-sale units across all price points.

Overall, this deficit isn’t bad. The researchers identified 20 potential development sites that are zoned for residential building, which means there are multiple opportunities for housing creation in Fairmont in the coming years.

“The core message from the report is that we need diverse housing options,” says Koppen. “We aren’t serving the community if we only build multi-family apartments or exclusively focus on single-family homes. Our housing investment needs to be varied to support different household sizes, income levels, and lifestyles.”

For example, most rental demand is for units priced below $1,225 per month. However, there is still demand for rentals priced above $2,000 per month. Most for-sale demand falls within the $163,000-$392,000 range, but some buyers still have larger or smaller budgets. 

Affordability Remains a Key Concern

Inventory is just one economic indicator for housing health. Affordability is another key metric that tells the story of Fairmont families. Most financial experts say people should spend a maximum of 30% of their monthly income on housing. In Fairmont, affordability is a concern for 1,324 houses. The report found 820 renter and 504 owner households pay more than 30% of their income for housing, while 235 renters and 223 owners pay more than 50% of their income on housing.

“When residents spend more of their take-home pay on housing, less goes into the community,” says Koppen. “There isn’t as much disposable income to spend on more enjoyable things like restaurants, stores, and recreation.”

Affordable housing can also affect residents' overall financial health because there’s less money left over each month to contribute to a savings fund. One study found 59% of Americans couldn’t cover a $1,000 emergency expense. The long-term health of the community depends on housing affordability. 

The City of Fairmont is Working on Housing Programs  

There are several challenges getting in the way of increasing housing inventory. It’s impossible to solve this problem overnight, especially as Fairmont needs different types of housing at varied price points. However, now that the city has a clear picture of its needs, it can invest in housing projects in the coming years.

One existing solution is the Rehabilitation Loan Program, which aims to improve distressed or neglected houses and bring them back to the market. The loan will fund 50% of total project costs, up to $25,000 for single-family units and $10,000 per apartment unit, for up to 4 units (totaling $40,000). Rather than relying on new construction, this program expands access to homes already available across Fairmont.

This program could have a big impact, according to the Housing Assessment. The report identified 124 blighted residential properties that could benefit from renovations. By investing in Fairmont’s existing assets, even if they’re in need of help right now, we can invest in future residents.

Beyond the Rehabilitation Loan Program, the city plans to continue exploring housing options and developing plans to move forward to keep up with demand.

Follow the EDA as it Supports Housing Solutions

The Fairmont EDA isn’t responsible for building houses, but it can work alongside the city to attract investors to increase local inventory. Housing is essential to economic growth and a key part of life in Fairmont. While this report showcases local shortfalls, it isn’t something we can’t overcome together.

Keep up with EDA news and have a voice in the future of Fairmont. If you want to discuss this report further, reach out. We’re happy to listen to potential solutions and consider multiple paths forward.