The challenge
Rents were rising and most residential land allowed only single-family homes.
The case
In 2018 Minneapolis adopted its 2040 plan, ending zoning that allowed only single-family homes on about 70% of the city's land. It permitted up to three homes per lot citywide, allowed denser buildings along transit routes, and scrapped parking minimums. The city permitted a record of more than 18,000 units in multifamily buildings from 2018 through 2022, but only 87 duplex, triplex and fourplex buildings from 2020 to 2024. One study estimated rents were 17.5–34% lower than a counterfactual Minneapolis, but its authors and the Minneapolis Fed both conclude the slower rent growth was likely due mainly to weakened demand after 2020, not new supply.
Why the results were mixed
The reform legalized more housing, and most new homes came from larger apartment buildings rather than triplexes. Rents grew slowly, but researchers caution that weaker demand, not the plan, likely explains most of that so far.
Sources
- Federal Reserve Bank of Minneapolis (2025). Unpacking supply and demand in rent trends since the Minneapolis 2040 Plan.
- Gu, H., & Munro, D. (2025). Zoning Reforms and Housing Affordability: Evidence from the Minneapolis 2040 Plan. GLO Discussion Paper 1629.
- Results for America: Zoning reform case study, Minneapolis.
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