First American City to Tame Inflation Owes Its Success to Affordable Housing
August 09, 2023 by Minneapolis has become the first major US metropolitan area to see annual inflation fall below the Federal Reserve’s 2% target since inflation increased in 2021. This achievement is largely attributed to a regional push for affordable housing, including eliminating single-family zoning and investing $320 million in rental assistance and subsidies. The construction boom in apartments and condos has helped keep shelter costs low, which is significant since housing costs make up a large portion of the consumer price index. Despite some opposition and persistent inequalities, the initiatives have led to a modest rent growth of just 1% since 2017, compared to 31% nationwide. The article highlights the importance of local policies in managing inflation and improving housing affordability.