Browse
Log in / Register
Share
In a landmark decision, Minneapolis has become the first major U.S. city to completely eliminate exclusively single-family zoning, a policy shift designed to proactively manage population growth and prevent a severe housing affordability crisis. This move, part of the broader Minneapolis 2040 plan, allows for the construction of duplexes and triplexes in neighborhoods previously restricted to one home per lot. By significantly increasing housing supply, the city aims to moderate home price growth and maintain its status as one of the nation's most affordable major urban centers.
In December 2018, the Minneapolis City Council voted to end the practice of single-family zoning—a regulation that limited construction to one detached dwelling per lot—throughout the entire city. This means property owners in any neighborhood can now build duplexes (two units) or triplexes (three units) on their land. The policy is a core component of the Minneapolis 2040 initiative, which addresses interconnected issues of housing, jobs, public health, and environmental sustainability. Industry experts like Redfin chief economist Daryl Fairweather have praised the change as a fair and efficient way to counteract historical segregation and make room for healthy urban growth.
The policy revision comes as a direct response to significant demographic and economic pressures. After a decade of stagnation, Minneapolis's population surged by 11% (41,000 people) between 2010 and 2017. This rapid growth created a severe supply-and-demand imbalance:
Although Minneapolis home prices were still below the national median in early 2019, their 8% year-over-year growth rate outpaced that of many larger, less affordable cities. The zoning change is a strategic effort to expand housing supply in line with demand to avoid the extreme affordability crises seen in cities like San Francisco and Seattle.
Minneapolis has maintained a notable affordability advantage. As of 2017, a household earning the city's median income of $55,270 would spend only 19% of their monthly income on the mortgage for a median-priced $235,000 home. Housing is generally considered affordable when it consumes no more than 30% of income. This contrasts sharply with Seattle (38%) and San Francisco (62%). In 2018, over 80% of homes for sale were affordable to median-income earners, contributing to one of the highest homeownership rates for low-income families in the country.
The potential increase in housing capacity is substantial. Before the change, over half of the city was zoned exclusively for single-family homes. By allowing duplexes and triplexes in all neighborhoods, the city effectively tripled the potential capacity of those former single-family zones and doubled the city's overall housing potential. An analysis based on 2017 Census estimates suggests that if just 5% of single-family homes in primarily single-family neighborhoods were replaced with duplexes and another 5% with triplexes, it would create over 20,750 new homes—enough to accommodate 47,500 additional residents, more than the total population growth between 2010 and 2017.
| City | Median Home Price (Feb 2019) | Year-over-Year Price Growth |
|---|---|---|
| Minneapolis | $235,000 (2017 data) | 8.0% |
| Seattle | Higher than Minneapolis | Less than 8.0% |
| San Francisco | Significantly Higher | Less than 8.0% |
While the primary goal is affordability, increasing urban density involves trade-offs. The reduction in large private yards may make the city less appealing to some families, potentially driving them to neighboring areas like St. Paul that retain exclusive single-family neighborhoods. However, higher-density communities often benefit from a greater reliance on shared public spaces like parks, which can foster social interaction and bring together residents from diverse socioeconomic backgrounds.
For homebuyers and city planners, the key takeaway is that Minneapolis's approach represents a proactive and data-driven strategy for managing growth. The policy is generally well-received by buyers, who view it as a progressive step that is unlikely to negatively impact property values. The strategy is not about transforming neighborhoods overnight but about creating more housing choices to allow the city to grow in a smart, sustainable, and inclusive manner. By expanding supply in anticipation of demand, Minneapolis provides a replicable model for other cities facing similar growth pressures.
