Redwood Falls is seeing real progress toward meeting its housing shortfall. With support from the Redwood County Housing Study, the city is moving ahead on infrastructure, funding and zoning so more housing becomes available as soon as possible.
Growing Demand Confirmed

The Redwood County Housing Study shows that since 1990, population has dropped about 11 percent but households have only declined by around 4 percent. The reason is smaller household sizes, now about 2.4 people per household, which changes what types of homes are needed.
The study also shows 23 percent of county residents are under 18 and 23 percent are over 60, highlighting simultaneous demand for family homes and senior-friendly housing.
Affordable housing and rental housing are significant gaps. The Housing Study indicates many households are cost-burdened and there is a high demand for rental units.
Redwood Falls Steps in to Accelerate Housing Growth
- Infrastructure in place or coming soon: In Hawthorn Court, the city is working on installing the curb, gutter, storm water systems and water service so that homes can be built as soon as funding is secured. Whitetail Court is next in line, where funding is not yet secured but planned for rental housing.
- Market rate and mixed housing options: The city is promoting twin homes (a housing type identified as missing in previous discussions) to add diversity of choice. Planning and zoning work is ongoing to allow both individual lots and larger lot developments depending on what makes most sense for each area.
- Funding and competitive incentives: Redwood Falls is pursuing competitive funding sources like the State Housing Tax Credit and is working to clear regulatory and permit hurdles to speed up developments.
Education and Support for Potential Homebuyers
For people considering buying a home, there are resources available now:
- A virtual homebuyer education class is offered every month except December.
- Free one-on-one counseling services through Southwest Minnesota Housing Partnership, including financial capability counseling (to assess readiness and set goals) and pre-purchase counseling (for those closer to buying who want to understand options and programs). The intake process can be done online to submit the documents and sign disclosures, and the meetings can be done online and via Zoom.
What’s Next
Redwood Falls is committed to acting on the Housing Study’s findings. The city is communicating its intent, engaging with developers, and pushing forward on projects like Hawthorn Court and the development of the Homes of Reflection Prairie. The goal is clear: when funding is available, homes will be ready to be built, so that Redwood Falls can respond to its housing demand, both for young families, seniors, and workforce housing.
“Cities have to be involved, they have to be at the table to help individuals make this possible.” That is Redwood Falls’ mindset as it turns the housing study into action, working hard so more housing becomes a reality.