Regional leaders focus on strategies to support underserved communities in the Twin Cities
Writer: Pablo Marquez
July 2025 — While the Minneapolis-St. Paul region features a diverse labor market and a thriving economy, the need for a deeper talent pipeline remains strong. Underserved communities can help meet that need, but housing remains a key issue, according to speakers at the recent Invest: Minneapolis-St. Paul leadership and networking conference.
“Access to labor is one of the biggest factors that companies are looking at today, and underserved communities offer a huge opportunity,” Matt Rauenhorst, president of The Opus Group, shared at the conference. “I think that affordable housing is clearly the challenge here. We need strong partnerships in order to find a solution for this. Cities, government authorities, and businesses need to come together in this aspect.”
Rauenhorst was speaking as part of a panel titled, “Inclusive Growth: How is the Twin Cities reaching its historically underserved neighborhoods, and what more is needed?”
The Minneapolis-St. Paul region is home to a highly skilled workforce. It hosts many major employers and an array of Fortune 500 companies, especially in advanced manufacturing, life sciences, clean technology, and food production. Yet, as in other growing metros, the region is experiencing an affordable housing crisis. Home prices have surpassed $400,000, driven by strong demand and limited supply. Although some neighborhoods still offer relatively affordable options, many desirable areas have become out of reach for average residents. As a result, a rising number of lower-income households are spending more than 30% of their income on housing, underscoring the region’s increasing affordability challenges.
“Community leaders, businesses, and regional organizations should come together to help solve local challenges. Those involved in the community can move the needle; we have to support people and individuals. Jobs and appropriate housing will make the region thrive. Businesses should come together with regional organizations and use available resources in order to push their growing interests in the Greater MSP region,” suggested panelist Leslie Dingmann, business development director of the Greater St. Cloud Development Corporation.
In Minneapolis and St. Paul, underserved communities often face challenges related to housing, transportation, healthcare, and economic opportunity. Specific neighborhoods like those along the I-94 corridor in both cities, historically impacted by redlining and infrastructure projects like highway construction, experience concentrated poverty and its related challenges. Additionally, some areas face shortages in primary care, dental, and mental health services, leading to designations as Health Professional Shortage Areas (HPSA) or Medically Underserved Areas/Populations (MUA/P).
These are all areas that need to be addressed to ensure equitable growth – and to help bolster the vital talent pipeline companies increasingly require, but it starts with investment, noted Damon Jenkins, senior vice president and Twin Cities regional market president for First Independence Bank.
“A thriving community is where one feels safe, stable, and empowered. Individuals take pride in their community when they see investment,” Jenkins said. “This is why job availability and the possibility for homeownership are essential. It’s going to take organizations and businesses coming together in order to push for a change. Everyone in the North Star should have a blueprint for success in this innovative region.”
The panel, which led off the discussions at the Invest: conference, was moderated by Beth Kieffer Leonard, partner-in-charge at EisnerAmper.
“It’s important to understand where we’ve been as a community, both in the Twin Cities as well as Greater Minnesota … and what’s important in a community to really start enhancing these changes,” Kieffer Leonard said in her opening remarks.
During the conversation, Rauenhorst also stressed that timing, speed and flexibility are essential aspects of private-public collaborations. “Getting projects off the ground is a real challenge. There’s a significant opportunity for cities and government entities to partner with the private sector. Duration is expensive and decreases the chance of good initiatives to come forward. We need support from local governments to ensure agility, speed and certainty in outcomes. It’s not just about what we deliver in the end, it’s about how quickly and flexibly we can deliver it,” he said.
Dingmann pointed out that regional economic development institutions and organizations are ready to help the private sector. “For individuals and developers looking to enter the region, we offer valuable partnerships that can help them navigate potential challenges. There are plenty of economic development agencies throughout the Twin Cities and across Minnesota, and we encourage businesses to take advantage of these resources since we’re here to support them,” she said.
According to Jenkins, it is also important to ensure that businesses and individuals have access to capital and financial opportunities. “In the last few years, I’ve seen the creation and extension of an ecosystem, banks and financial institutions in MSP are coming together to create avenues for growth, access to capital, and investment opportunities for business owners in the Twin Cities,” he said.
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