High housing costs: This city might have an answer

It’s hard to find an affordable home in the United States these days, but a program in Minneapolis may hold a solution.

MINNEAPOLIS — It’s hard to find an affordable home in the United States these days. Even though the average 30-year fixed mortgage is down about a full percentage point over the last year, the median sale price for an existing home is up 3.1%, according to the National Association of Realtors.

But a program in Minnesota might hold one of the keys to fixing the problem, even though it has faced a fair share of controversy.

In 2019, Minneapolis became the first major U.S. city to end single-family exclusive zoning, opening the door for developers to build multifamily buildings on lots where a single-family home used to be. Through a plan known as Minneapolis 2040, the city invited developers to mix up the types of projects across different neighborhoods, including units specifically for affordable housing.

The plan included other reforms, such as the elimination of parking requirements and a priority on designs favoring public transit users, pedestrians and bicyclists.

“If we’re going to put up affordable housing, we don’t just want to house one family. We want to house five or six or eight or 25 families,” said Minneapolis Mayor Jacob Frey, who has overseen the Minneapolis 2040 plan. “We’re allowing for a greater diversity of housing options.”

https://www.nbcnews.com/business/real-estate/high-housing-costs-minneapolis-solution-rcna170857

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