"I can’t tell you how many people were like, ‘Oh, look at all this supply, look at all these just brand new buildings,’ and kind of scoffing at it like this was going to lead to gentrification or rents skyrocketing,” said Minneapolis Mayor Jacob Frey, a two-term Democrat, in an interview. “The exact opposite has happened.”
This is one of those “well duh” moments… Obviously more supply leads to lower prices. This is Economics 101!
This is the best summary I could come up with:
Well before pandemic-related supply-chain snarls and labor shortages roiled the economy, the city of Minneapolis eliminated zoning that allowed only single-family homes and since 2018 has invested $320 million for rental assistance and subsidies.
“I can’t tell you how many people were like, ‘Oh, look at all this supply, look at all these just brand new buildings,’ and kind of scoffing at it like this was going to lead to gentrification or rents skyrocketing,” said Minneapolis Mayor Jacob Frey, a two-term Democrat, in an interview.
Local backlash has squashed projects from California to New York, where an ambitious plan by Governor Kathy Hochul to add about 800,000 units of housing over the next decade fell apart in April after resistance from suburban areas.
The mayor’s approach to housing has drawn opposition, including legal action based on environmental concerns and complaints about multifamily rental units next to single-family homes.
The growth has also created more options for residents like Gina Kowalczyk, an elementary school teacher who moved to the region in June and didn’t think she’d be able to afford a one-bedroom apartment in the suburb of Minnetonka.
While peer metro areas including Dallas, Phoenix and Jacksonville saw a mass influx of residents in recent years that sparked demand shocks in the local housing markets, the Twin Cities population has remained close to 3.7 million people.
I’m a bot and I’m open source!
That sucks. So, people that worked and EARNED the right to live somewhere nice with property to enjoy now have to watch their property values tank along with having riff raff move into their neighborhood. Yeah, great. Now, that nice suburban home that someone worked hard for to buy is next to subsidized rentals.
Zoning laws are great and people need to fight to keep them. The goal should be to get people to improve their financial position so they can afford to live in the burbs too.