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INNEAPOLIS — The US housing market has become increasingly unaffordable in recent years, with median home prices rising 3.1% despite lower mortgage rates. However, Minneapolis' innovative approach to zoning laws may hold the key to addressing this issue. In 2019, the city became the first major US metropolis to eliminate single-family exclusive zoning, allowing developers to build multifamily units on previously residential lots.

    The Minneapolis 2040 plan aimed to increase housing diversity and affordability by eliminating parking requirements and prioritizing public transit-friendly designs. Mayor Jacob Frey believes this approach has been successful, citing a 12% growth in the city's housing stock between 2017 and 2022, compared to just 4% statewide.

    Developers are taking notice of Minneapolis' pro-housing policies, with permit filings increasing by 250% over the past five years. This surge in development is expected to continue, with early signs indicating that rents may be decreasing as a result. In contrast to the national average rent increase of 22%, Minneapolis has seen a 4% decline since 2019.

    While some residents have expressed concerns about increased density and parking issues, proponents argue that the plan's benefits outweigh its drawbacks. Environmental groups initially raised concerns about the potential environmental impact, but a court order was later lifted after the Minnesota state Legislature passed legislation protecting the plan from lawsuits.

    The Minneapolis experiment serves as a model for addressing the national housing affordability crisis. Proponents emphasize the need for a multifaceted approach that incorporates regulations, community engagement, and government policies to support the housing market. As the US grapples with rising housing costs, Minneapolis' innovative approach may offer a solution to this pressing issue.