St. Paul Apartment Construction Slows; Rent Control Under Scrutiny

Apartment permits declined by 48 percent in the past year in St. Paul. The city’s voters approved one of the nation’s most aggressive rent stabilization ordinances in November 2021.

2 minute read

April 25, 2023, 8:00 AM PDT

By James Brasuell @CasualBrasuell


An image of St. Paul, Minnesota and the Mississippi River at nightfall.

Paul Brady Photography / Shutterstock

[Updated June 14, 2023 to accurately reflect the state of Minneapolis’ rent control ordinance.] Apartment construction is quickly declining in St. Paul, bucking national trends and raising questions about the effects of the aggressive rent control policies adopted by voters in 2021.

Frederick Melo reports on new data from the U.S. Department of Housing and Urban Development that show a 48 percent decline in apartment permits in just a year.

“The numbers of permitted units ended the year roughly on par with the city’s 10-year average, which was weighed down coming out of the Great Recession a decade ago. That’s fair, bad or really bad, depending upon how you slice it,” writes Melo.

For local perspective on the decline in construction, Melo notes that neighboring Minneapolis, which advanced its own rent control ordinance in 2021, increased multi-family residential permitting by 16 percent in the same time period. Minneapolis city staff is still drafting that ordinance. Crystal King, a spokesperson for St. Paul’s Department of Planning and Economic Development, is quoted in the article saying that it’s too soon to say why the city’s multi-family development markets are headed in such different directions. As noted by Melo, St. Paul historically has lagged behind Minneapolis’ multi-family construction rates.

And there are significant differences between the rent stabilization ordinances approved in either city. “Opponents of rent control have been quick to point out a key policy difference between the two cities. St. Paul voters approved the city’s first-ever rent-control policy at the ballot box in November 2021, a strict 3% rent cap that was later loosened by the city council last September, with the mayor’s blessing, to exempt new development for 20 years,” writes Melo.

Melo reports more on the fallout from the permitting data, including responses from rent control advocates, in the source article below.

Sunday, April 23, 2023 in Pioneer Press

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Bird's eye view of manufactured home park.

Manufactured Crisis: Losing the Nation’s Largest Source of Unsubsidized Affordable Housing

Manufactured housing communities have long been an affordable housing option for millions of people living in the U.S., but that affordability is disappearing rapidly. How did we get here?

March 25, 2025 - Shelterforce

U-Haul truck on road with blurred grassy roadside in background.

Americans May Be Stuck — But Why?

Americans are moving a lot less than they once did, and that is a problem. While Yoni Applebaum, in his highly-publicized article Stuck, gets the reasons badly wrong, it's still important to ask: why are we moving so much less than before?

March 27, 2025 - Alan Mallach

Close-up of rear car bumper in traffic on freeway.

Research Shows More Roads = More Driving

A national study shows, once again, that increasing road supply induces additional vehicle travel, particularly over the long run.

March 23, 2025 - Road Capacity as a Fundamental Determinant of Vehicle Travel

Aerial view of Grants Pass, Oregon with fall foliage and hills in background with a cloudy sky.

Judge Halts Enforcement of Anti-Homeless Laws in Grants Pass

The Oregon city will be barred from enforcing two ordinances that prosecute unhoused residents until it increases capacity and accessibility at designated camping sites.

1 hour ago - Street Roots

Colorful murals on exterior of Hollywood High School in Los Angeles, California against night sky.

Advancing Sustainability in Los Angeles County Schools

The Los Angeles County Office of Education’s Green Schools Symposium brings together educators, students, and experts to advance sustainability in schools through innovative design, climate resilience strategies, and collaborative learning.

2 hours ago - Los Angeles County Office of Education

Rusty abandoned oil well and equipment with prickly pear cactus next to it in West Texas.

Using Old Oil and Gas Wells for Green Energy Storage

Penn State researchers have found that repurposing abandoned oil and gas wells for geothermal-assisted compressed-air energy storage can boost efficiency, reduce environmental risks, and support clean energy and job transitions.

3 hours ago - Pennsylvania State University