The Minneapolis City Council is taking proactive steps to address the city’s growing housing shortage and provide support to residents impacted by recent economic challenges.
Addressing the Housing Shortage
A recent report from the Minneapolis Federal Reserve Bank highlights a significant decline in housing unit construction. In 2025, only 12,161 units were built, a sharp drop from the over 18,000 units constructed annually between 2019 and 2022. This slowdown is contributing to rising rents and home prices, threatening the region’s reputation for housing affordability. Developers cite high construction costs, rising interest rates, and limited rent growth as factors hindering new apartment developments. In response, the City Council is exploring strategies to stimulate housing production and ensure affordability for residents.
Economic Impact of Operation Metro Surge
Operation Metro Surge, a federal immigration enforcement initiative, has had a profound economic impact on Minneapolis. City leaders report an estimated $203.1 million in losses, affecting workers, businesses, and community services. Approximately 76,000 residents, primarily from immigrant and minority communities, are in urgent need of assistance. The City Council is working to provide relief and support to those affected, including allocating funds for rental assistance and other essential services.
Eviction Notice Extension Efforts
In an effort to support renters facing eviction, the City Council approved a temporary measure requiring landlords to provide tenants with 45 days’ notice—up from the standard 30—before initiating eviction proceedings. This extension aims to give tenants additional time to address rent issues and avoid homelessness. However, the measure faced challenges, including a mayoral veto that the council failed to override. Despite this setback, council members continue to advocate for policies that protect vulnerable residents.
Mayor’s Focus on Core Responsibilities
In his recent State of the City address, Mayor Jacob Frey emphasized a return to fundamental city responsibilities. Acknowledging that City Hall has strayed from its core mission, Frey outlined a “back to basics” approach. This includes increased enforcement of public drug use with concurrent support services, broader use of tax increment financing for development projects, and efforts to streamline permitting processes to facilitate housing and business development. The mayor’s focus aims to address the city’s pressing issues through coordinated efforts and practical solutions.
As Minneapolis navigates these challenges, the City Council and Mayor’s Office are committed to implementing policies that promote housing affordability, economic stability, and the well-being of all residents.