In the heart of the Twin Cities, a new six-story apartment complex named "The Nine" has recently opened its doors, marking a significant milestone in the area's urban development. Located along Lexington and University, this mixed-use building offers 309 apartments with rental prices ranging from $995 for income-restricted studios to $2,375 for two-bedroom units. The project represents the first market-rate apartment development in Frogtown in over half a century, symbolizing both progress and challenges in revitalizing neglected urban corridors.
The Long Road to Completion and Its Broader Implications
Construction of "The Nine" began in earnest after overcoming numerous obstacles. Initially known as Lexington Station, the project faced opposition from local residents and city officials, leading to delays and financial uncertainties. Despite these hurdles, Mayor Melvin Carter’s veto allowed the project to proceed, albeit with modified financing. The completion of this building highlights the extended timeline required for new housing projects in the United States, often spanning several years from conception to occupancy.
Moreover, the building's emergence reflects broader trends in urban planning and transit investment. City leaders had hoped that developments like "The Nine" would catalyze growth along the University Avenue corridor, leveraging the Green Line light rail investment. However, recent data from the Department of Housing and Urban Development reveals a concerning decline in housing production in Minneapolis and St. Paul. These cities have experienced an 88% and 81% drop-off, respectively, in housing starts compared to their pre-COVID averages, raising questions about the effectiveness of current policies.
One potential factor behind this decline is the implementation of rent stabilization policies. Both Minneapolis and St. Paul have either enacted or considered such measures, which may deter investors and developers due to perceived risks. While these policies aim to protect tenants, they seem to have inadvertently stifled new construction, exacerbating the housing shortage. The situation is further complicated by national economic dynamics, including high inflation and stagnant rent growth in Minneapolis, though these factors alone do not fully explain the dramatic slowdown in housing development relative to other midwestern cities.
From a policy perspective, addressing this issue requires a nuanced approach. Repealing rent stabilization policies might be one solution, but political feasibility remains a challenge. Alternative strategies could include revising new construction exemptions or implementing reforms to maintain the city's investment ambitions. Ultimately, finding a balance between protecting renters and encouraging development will be crucial for sustaining the Twin Cities' economic and environmental momentum.
As an observer, it's clear that well-intentioned policies can sometimes lead to unintended consequences. The case of "The Nine" and the broader trend of declining housing production underscore the need for adaptive and forward-thinking urban planning. Balancing the interests of developers, residents, and policymakers will be essential in ensuring that cities like Minneapolis and St. Paul continue to thrive and provide affordable housing options for all residents.