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Affordable Housing Win: Bloomberg Admits Progressive Policies Beat Back Inflation In Minneapolis
Minneapolis has achieved a remarkable feat by becoming the first major metropolitan area to achieve an inflation rate below the Federal Reserve's 2% target, largely attributed to its robust efforts to tackle soaring housing costs within the city. Their proactive approach, including the elimination of single-family zoning in 2018, which covered 70% of residential land, has allowed for increased housing density and affordability. Minneapolis invested over $300 million into rental assistance and subsidies, facilitating the construction of apartments and condos. With a May inflation rate of just 1.8%, the city not only maintains lower price increases but also boasts more affordable income-to-rent ratios compared to other major cities. These efforts position Minneapolis as a model for effective affordable housing policy, with residents dedicating a reasonable portion of their income to housing costs, aligned with the goal of around 30%.
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