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St. Paul rent control leads to 60% drop in building permits
Following the 2022 implementation of rent control in St. Paul, Minnesota, the city has seen a significant decline in new housing construction. Building permits in St. Paul have reportedly dropped by 60 percent, a trend attributed to strict rent caps that do not account for inflation.
In contrast, Minneapolis, the neighboring Twin City, has seen an increase in building permits. While Minneapolis politicians also voted for rent control, they implemented it with more caution, allowing developers to shift construction activity toward their jurisdiction.
Economists, including Salim Furth of the Mercatus Center, have suggested that such regulations discourage investment by making the market less attractive to builders. Local officials, such as Minneapolis City Council member Aisha Chughtai, continue to advocate for rent control measures to ensure housing affordability.
Entities
Aisha Chughtai · Mercatus Center · Minneapolis · Salim Furth · St. Paul
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Building permits in Minneapolis increased following the city's decision to be wary of rent control. www.thealpenanews.com · pjmedia.com · reason.com
- [● 3 SOURCES] Building permits in St. Paul decreased by 60 percent following the implementation of rent control. www.thealpenanews.com · pjmedia.com · reason.com
- [● 3 SOURCES] St. Paul's rent control law does not include allowances for inflation. www.thealpenanews.com · pjmedia.com · reason.com
- [● 3 SOURCES] Mercatus Center economist Salim Furth stated that St. Paul's rent control would shut down construction. www.thealpenanews.com · pjmedia.com · reason.com