While in Portugal it is discussed how to wage the lace climb and increase the housing supply, it is worth looking at international examples that show possible solutions.
While most of the Cities of the American Midwest faces a strong increase in rent, Minneapolis stands out as a remarkable exception. In recent years, the city has been the scene of a true urban transformation, which results from a bold political decision: to abolish the zones strictly reserved for single -family dwellings.
This change in the order allowed diversifying and expanding housing supply, making room for the construction of multifamily buildings and more density in areas where it was only possible to build isolated houses. The impact was immediate and measurable. Since 2017, Minneapolis has built more dwellings than any other major city in the region, reversing the scarcity trend in other Midwest zones.
The effects on the lease market are clear. While comparable cities, such as Indianapolis-where it was built much less-saw rents up more than 20%, Minneapolis registered the opposite: the median income deflated from income fell consistently and is currently more than 20% below 2017. This contrast demonstrates the relationship between housing supply and market prices.
The experience of Minneapolis is a case of study for urban planners and political decision makers worldwide. It shows that public policies that remove barriers to construction, combined with faster and faster investment licensing, can serve as an effective brake on the escalation of housing prices. The increase in supply not only directly benefits tenants, making access to housing more affordable, but also promotes a more inclusive and competitive city.
In a context in which many societies face housing crises, the minneapolis lesson is clear: to make the rules of urbanism and stimulate construction, they are concrete paths to return balance and justice to the real estate market.
- The facts seen to the magnifying glass by André Pinção Lucas e Juliano Ventura – A partnership of the postcard with the Institute
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