Thanks to Craig Miller for once again giving us the
very simple, but apparently much needed, lesson on the
law of supply and demand.  

If you can't afford a particular place to live it must
be due to the fact that other people willing and/or
able to spend more money also would like to live
there.  Should we take all the rental properties in
the highest demand neighborhoods and award them to
people by way of a lottery drawing charging them
whatever amount they happen to be able to afford?

While it is surprising that Chicago metropolitan areas
rents are similar to those in the Twin Cities, it
would appear that their region also has an
"affordable" housing crisis.  From Chicago's
Metropolitan Planning Council website:

"Rents in the 1990s have continued to outpace the
overall rate of inflation."

Question:  why?

Apparent answer:  

"Overall, the region�s population has grown by close
to eight percent since 1990 to an estimated 7,829,870
people... in 1999, an increase of 568,694 people. 

In 1999, there are 1,066,800 rental units in the
region... This is a net region-wide decrease of
approximately 52,000 rental units since 1990, a 4.6
percent loss."

http://www.metroplanning.org/resources/61section3.asp?objectID=61

Thus, the supply of rental units decreased almost 5%
while one can assume that there was a supply in the
demand for rental units due to an 8% increase in
population.  Sounds like a supply and demand issue to
me.  The Chicago Metropolitan Planning Council's
conclusion:

"Currently, there is little incentive for developers
to build rental housing given zoning policies, the
cost of land, high property tax rates, and a general
preference among local jurisdictions for owner- over
renter-occupied properties." 

This last paragraph is the important one in my
opinion.  Does anyone see any similarities to
Minneapolis here?  

The April 29th edition of the Southwest Journal has an
article featuring an interview with new councilmember
Dan Niziolek about the effects of zoning on housing
supply in Minneapolis.  (Unfortunately, the SW
Journal's website did not have the story posted online
yet.  check www.swjournal.com)

It would seem to me that anyone truly concerned about
the availability of "affordable" housing in this city
should be in favor of "upzoning" to allow more
intensive land use in residential areas.  Just to be
clear, by more intensive, I mean more density.  If
this city and its citizens honestly desired to lower
the cost of housing they would support upzoning ALL of
the city's residential areas or (I know this is going
to sound drastic) scrapping the zoning restrictions on
residential property period.  

Of course, this isn't going to happen because it would
necessitate taking power away from neighbors, not to
mention elected officials who must react to negative
neighborhood opposition to development proposals such
as the one at 53/Lyndale Av S, as well as those
neighborhood organizations that we all just couldn't
live without.

Paul Lambie
Lowry Hill

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