NHC member City of Minneapolis Department of Regulatory Services recently announced its approval for over $1 billion in funding for various citywide construction projects, including over 1,400 single family and multifamily units. Approval of the projects marks the third straight year Minneapolis’ funding has exceeded $1 billion.
Most of the construction projects will take place in the downtown area, where a multipurpose stadium and mixed-use development will be erected. Rental housing options are also thriving in the area, where in addition to construction of new units, older buildings will be converted and updated. In total, 1,488 homes, apartments and condominiums will be constructed.
“We are entering a period of growth in our city and today I am excited to provide evidence that Minneapolis is entering it sooner than most,” said Minneapolis Mayor Betsy Hodges in a press release. “Driven by a high level of investment in commercial development, including the new stadium, and multi-family housing developments, the $1 billion in construction permits approved so far this year, speaks to our commitment to working towards creating a more vibrant Minneapolis that attracts increased investment and residents alike to the city.”
Minneapolis’ work to ensure that funding is available for the creation and maintenance of affordable housing developments will help easing the housing cost burden that 12 percent of households in the area face. Our February report, Housing Landscape 2014, analyzed data from the American Community Survey to detail housing affordability challenges families face across the nation, revealing that 15 percent of Minneapolis’ low- and moderate-income households spend at least half of their income on housing costs, compared to a national average of 16 percent. The construction of new affordable housing developments will help to ease the cost-burden and make affordable housing that much more attainable for Minneapolis residents.
In addition to the single family and multifamily housing units, the funding will cover construction of a new Minnesota Vikings football stadium and student housing options. The city has many development submissions still pending, so it is likely that new constructions projects will exceed $2 billion.