Abstract

Problem, research strategy, and findings

In December 2018, the Minneapolis (MN) city council approved a new comprehensive plan that proposed eliminating single-family zoning restrictions throughout the city. In this project, I study the initial impact of this change on the sales prices of affected housing units. I estimate a series of difference-in-differences models comparing the sales price of houses within 3 km of the Minneapolis border in the year before and year after the city adopted the plan. I find that compared with similar unaffected properties in surrounding cities, the Minneapolis plan change was associated with a 3% and 5% increase in the price of affected housing units. In addition, there is some evidence that this price increase is due to the new development option it offers property owners. I find that the plan-related price increases are larger in inexpensive neighborhoods and for properties that are small relative to their immediate neighbors.

Takeaway for practice

By examining the short-term effect of the Minneapolis 2040 Plan’s elimination of single-family zoning, my study is useful for planners working in cities considering similar reforms. My analysis, though preliminary, suggests that there is indeed demand for denser development in the city. But the price increases associated with the upzoning redounds most directly to relatively small properties and those in inexpensive neighborhoods. Planners should thus be sensitive to how this type of change can affect housing affordability and housing stock diversity.

中文翻译：

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升级和单户住宅价格

摘要

问题、研究策略和发现

2018 年 12 月，明尼阿波利斯 (MN) 市议会批准了一项新的综合计划，提议取消整个城市的单户住宅分区限制。在这个项目中，我研究了这种变化对受影响住房单元销售价格的初步影响。我估计了一系列差异模型，比较了该市采用该计划的前一年和后一年明尼阿波利斯边境 3 公里范围内的房屋销售价格。我发现，与周边城市类似的未受影响的房产相比，明尼阿波利斯的计划变化与受影响的住房单元价格分别上涨了 3% 和 5%。此外，有证据表明价格上涨是由于它为业主提供了新的开发选择。

外卖练习

通过检查明尼阿波利斯 2040 计划取消单户分区的短期影响，我的研究对在考虑类似改革的城市工作的规划者很有用。我的分析虽然是初步的，但表明该城市确实需要更密集的发展。但与升级相关的价格上涨最直接地反映在相对较小的房产和廉价社区的房产中。因此，规划者应该对这种类型的变化如何影响住房负担能力和住房存量多样性保持敏感。