The Link Between Land-Use Reforms and Housing Development

In 2019, the city of Minneapolis took the bold step of eliminating single-family zoning. That was the culmination of ongoing efforts during the previous decade, during which the city had been chipping away at land-use restrictions, Route Fifty reports.

The results of those changing policies began to become evident between 2017 and 2022, during which time the city saw a 12% increase in its housing stock while rents increased by just 1%. Furthermore, the benefits of that boost in the city's housing supply were felt by the community’s unhoused population, as Hennepin County, where Minneapolis is located, saw homelessness decrease by 12% during that same period. In contrast, the rest of Minnesota's housing stock increased by 4% while rents and homelessness each rose 14%.

Between 2017 and 2022, nearly 21,000 new units were permitted in the city. With reduced parking minimums and easy permitting in commercial corridors, about 87% of those units were part of large multifamily buildings with at least 20 apartments. Surprisingly, eliminating single-family zoning and allowing two-to-four-unit buildings on all residential lots in the city—the policy that garnered the most attention nationwide—accounted for only 1% of new permits.

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