How to fix a housing shortage

Key takeaways

The housing crisis in cities like Minneapolis is exacerbated by a critical shortage of available homes, emphasizing the need for innovative housing solutions.
Policies like the Minneapolis 2040 plan highlight the importance of revising zoning laws to facilitate the construction of more diverse housing options.
Community resistance, often labeled as NIMBYism, poses significant challenges to advancing housing projects, revealing a clash between individual homeowner concerns and collective needs.
Legal challenges can significantly hinder housing development, as seen in Minneapolis, where environmental concerns have led to significant construction delays.
Addressing the housing shortage effectively may require shifting decision-making power to state-level governments to promote consistency and efficiency in development policies.

Summary

Introduction to the Housing Crisis in Minneapolis

In a bustling neighborhood in Minneapolis, real estate developer Cody Fischer envisions transforming a corner lot into energy-efficient housing. The discussion begins with the backdrop of a massive housing shortage that’s driving home prices up across the country. Fischer's mission aligns with national calls for increasing housing supply, especially 'Missing Middle' homes—small to mid-size apartment buildings that have largely been absent from housing discussions for decades.

Minneapolis 2040 Plan: A Bold Vision

The Minneapolis 2040 plan represents a groundbreaking move in urban policy, aiming to address the housing crisis while considering climate change and racial justice. This ambitious plan reforms zoning laws, allowing for multi-family housing developments in areas once designated only for single-family homes. This shift is hailed as essential for increasing the housing supply but meets resistance from long-standing neighborhood residents.

The Challenge of Community Resistance: NIMBYism vs. YIMBYism

Cody Fisher’s experiences reveal the tension between local residents' desires and broader housing needs. Despite seizing the opportunity presented by the new housing policies, Fischer faces backlash from locals fearing change. The podcast contrasts the NIMBY (Not In My Backyard) mentality with the emerging YIMBY (Yes In My Backyard) movement, highlighting the difficulties government faces in balancing community concerns with the pressing need for more housing.

Legal Setbacks and Their Implications

Fischer’s plans encounter significant legal hurdles after environmentalists challenge the city’s comprehensive housing strategy, claiming it lacks necessary environmental review. This lawsuit stalls multiple construction projects, showcasing how legal and bureaucratic processes can derail even well-supported housing initiatives. The discussion extends to generational perspectives on environmentalism, with younger advocates prioritizing density and climate action.

The Path Forward: State-Level Solutions

The conversation culminates in a call for statewide reforms to streamline housing development processes and shift some decision-making away from local governments, which might be ill-equipped to address the scope of the housing crisis. The podcast suggests potential paths forward, illustrated by legislative changes that limit local legal challenges to housing plans, promoting a unified approach to the housing crisis.

Show notes

When Cody Fischer decided to get into real estate development, he had a vision. He wanted to build affordable, energy efficient apartments in Minneapolis, not far from where he grew up.

His vision was well-timed because, in 2019, Minneapolis's city council passed one of the most ambitious housing plans in the nation. One aim of that plan was to alleviate the city's housing shortage by encouraging developers like Cody to build, build, build.

But when Cody tried to build, he ran into problems. The kinds of problems that arise all over the country when cities confront a short supply of housing, and try to build their way out.

Today on the show, NIMBYism, YIMBYism and why it's so hard to fix the housing shortage. Told through the story of two apartment buildings in Minneapolis.

This episode was hosted by Amanda Aronczyk and Kenny Malone. It was produced by Emma Peaslee and Sofia Shchukina, and edited by Molly Messick. It was engineered by James Willets and fact-checked by Sierra Juarez. Alex Goldmark is Planet Money's executive producer.

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