Sometimes, crazy northerners crack a hole in the ice and disrobe down to a skinny bikini before plunging into a chilly frozen lake. It’s called a Polar Plunge. It’s supposed to be fun!
But that’s not the type of plunge I’m bringing you in this article by well-known urban geographer Bill Lindeke. New construction in the legacy cities, which had made nice strides from 2017-2021, plummeted down 88%.
Comparing the slowdown to other cities of similar size reveals an undeniable first place in the worst record award to be given out. The cause, you ask? Bill suggests.
The most obvious culprit to me is that both St. Paul and Minneapolis have enacted (or taken steps toward enacting) rent stabilization policies. This was an issue that I argued about back in 2021, writing that the policy proposal appearing on the referendum would amount to St. Paul “redlining itself” when it came to attracting housing investment. The bigger surprise is that Minneapolis seems to also have been affected by concerns about rent stabilization, even though they haven’t actually enacted any actual policy.
I say it doesn’t stop there. The hostile environment against developers, landlords, tradespeople, maintenance and upkeep folks, and anyone who puts effort into the upkeep of real property has taken a toll.
There are other municipalities that welcome people who want to build upon and maintain investment properties. Options provide choices.
Home Economics 