Minneapolis. |
Yeah that makes zero sense. Gentrification ("upzoning") drives prices up, not down. The reason housing is super expensive on 14th Street is because people want to live within walking distance of bars and restaurants and stores. But the only reason those bars, restaurants and stores are there is because they radically increased the number of housing units around 14th Street. If they hadn't done that, all those businesses never would have opened because there wouldnt be enough foot track to support them. 20 years ago, 14th street was mostly empty store fronts and no one went there at night unless they were going to the Black Cat. |
Nope: https://kevinerdmann.substack.com/p/the-minneapolis-miracle |
I love that you’ve pre-positioned your excuses and also claimed you can’t isolate your policy’s effects on housing markets. But you remain committed to it as the only way forward. No wonder we have a housing crisis. Just look at the smart growth movement. That was championed by Doug Duncan in 1998(?) and it’s basically the same framework that produced thrive, the new master plans, and the numerous tax breaks and cash incentives that the county has given to developers. We closed vast swaths of land to housing (the ag reserve) in the interest of concentrating new housing in revitalized downtowns. The policy has been in place through loose credit and tight credit and then loose credit again (credit markets fluctuate over time and good policy accounts for that). It’s also weathered tight supply chains and loose supply chains (like credit markets, supplies of housing inputs fluctuate over time and good policy can survive that). Smart growth succeeded in concentrating new development down county in dense developments around transit. It also promised to lower housing prices and improve the county’s revenue. It did neither of those things. Housing is more expensive than ever and the county had to raise taxes again last year. Not only that, but we’ve now found out that we need to subsidize smart growth through tax abatements. TL;DR: You’re convinced your policy works, but you can’t prove it, and you continue to argue that it’s the only way even though it hasn’t delivered on its affordability or budget promises and is such a failure that we need to pay people to build housing according to the plan. |
Yep. A much more recent piece from a much more reputable organization: https://www.minneapolisfed.org/article/2024/twin-cities-region-meets-ambitious-housing-goals-for-second-year-but-has-much-work-left-to-do |
DP. If you read closely you’ll see it’s a regional analysis. Most cities in the region didn’t adopt the new rules that Minneapolis did and some adopted rent control. Maybe it was the rent control. |
+1 |
New York City has been “upzoning” for 350 years |
You can tell because it’s so affordable now. |
How about this: "It’s become much cheaper to rent in Minneapolis over the past few years, particularly when you consider rising incomes and consumer prices generally. " https://onefinaleffort.com/blog/a-detailed-look-at-minneapolis-housing-supply-reforms Or this: "upzoning along commercial and transit corridors and eliminating minimum parking requirements have made housing development cheaper and easier. In other places that have expanded the availability of apartments in commercial areas and eliminated parking requirements, more housing has been built and affordability has improved." https://www.pewtrusts.org/en/research-and-analysis/articles/2024/01/04/minneapolis-land-use-reforms-offer-a-blueprint-for-housing-affordability |
According to the fed report, housing production was in middle of the pack among peer regions. It wasn’t remarkable one way or the other so it looks a lot more like correlation than causation. |
You picked out the one phrase that indicated it was still in the middle of the pack on the metric of housing units per 1000 residents, though housing production is steadily improving that number. You ignore everything around it that says that that rents are more affordable and homeownership is second highest among peers, which was the issue in question. "rents in the Minneapolis-St. Paul MSA have increased at a rate lower than that of most of our peer regions. The region’s five-year change in the typical market-rate rent was among the lowest, second only to that of the San Francisco MSA, which has the highest rent." |
I picked out the part of the report about supply increasing to refute the claim that supply increasing caused those other good outcomes. Austin is a better example of supply increasing and prices falling. |
OH got it. Two things then: 1. If we are talking about increasing supply, the more relevant information is in goal one and goal two of that report. They show that the supply has been increasing significantly. True, the region may still have less units than half their peers overall, but the relative supply in the region has increased. 2. I do agree with you that upzoning alone won't make a huge difference. But the original claim in this thread was that "NIMBY policies" make housing more expensive. The other two sources cited do a god job of showing how the combination of different "NIMBY" tactics (parking, transit-oriented development, and upzoning) all come together to make housing more affordable. |
If the supply increases in Minneapolis were sufficient to drive prices lower then other markets that built even more housing should have seen steeper price drops. The point is the supply increase in Minneapolis wasn’t significant or out of the ordinary among pet markets. In MoCo, housing has gotten more expensive (even after adjusting for inflation) since it started adopting YIMBY policies 25 years ago. That’s neither debatable nor surprising because they reduced the amount of land available for housing (reducing supply of something makes it more expensive) and then focused development on the most expensive type of housing per square foot (high rise). |