Estimating Early Effects of the Minneapolis 2040 Plan

• In Event: Impacts of Local Land Use Policies

Abstract

In 2019, the city of Minneapolis passed a high-profile 2040 Comprehensive Plan which included a series of land-use reforms, including allowing higher density for previously single-family lots as well as relaxing parking requirements for multifamily buildings. Using a synthetic control method approach, this paper analyzes the effects of this zoning reform, comparing development in Minneapolis to a weighted average of a number of comparable cities.  Though passed in 2019, the adoption of the 2040 plan has been staggered given its legal challenges and has only recently been fully implemented. Using a combination of data sources, including building permits data and American Community Survey data to capture rents and prices, we find a limited housing production response as of 2023 and mixed results on evaluating the rents and prices effects.  

Author

• Erik Hembre, Federal Reserve Bank of Minneapolis
  Presenting Author