St. Paul housing construction declines following rent control implementation

Following the implementation of rent control measures in 2022, housing construction in St. Paul has reportedly seen a 60% decline in building permits. Critics argue that the strict rent caps, which do not account for inflation, discourage investment and reduce the overall supply of housing.

In contrast, Minneapolis, which also considered rent control but maintained more cautious policies, has seen an increase in building permits. Economists suggest that developers are shifting construction efforts to Minneapolis to avoid the regulatory environment in St. Paul. While some local officials advocate for more aggressive rent caps to address affordability, opponents maintain that such measures ultimately drive up prices by stifling new development.