Graduation Year

2022

Date of Submission

4-2022

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

David Bjerk

Reader 2

Peter McAniff

Rights Information

2022 Grant H Donaldson

Abstract

Affordable housing has become increasingly limited in urban America. As a policy response, upzoning, or the process of increasing the number of units a property is zoned for, is becoming a leading solution. The goal of upzoning is to increase housing density, eliminate single-family zoning laws deemed inequitable, and ultimately increase the supply of affordable housing in the United States. In 2019, Minneapolis, Minnesota became the first major city in America to upzone, turning all formerly single-family zoned properties to multi-family zoned properties with its Minneapolis 2040 Plan. Many progressive states and cities are looking to follow the lead of Minneapolis. This paper estimates the effects of the 2040 plan on single-family housing prices using a difference-in-difference approach. My model indicates that the 2040 plan is responsible for increasing single-family home values by approximately 3%. Single-family homes in upper income areas appreciate more than those in lower income areas in response to the 2040 plan. Multi-unit properties in Minneapolis experienced a decrease in value due to the 2040 plan, indicating early success in increased affordable housing.

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This thesis is restricted to the Claremont Colleges current faculty, students, and staff.

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