Fed dashboard reveals mixed impact of St. Paul housing rules
A Federal Reserve dashboard shows St. Paul's 2023 zoning reforms have increased small-scale housing permits but coincided with steep drops in large multifamily development and mixed effects on rents and affordability.[1]
The dashboard reports that permits for 2- to 4-unit buildings rose to 76 units in 2024, matching the total for the previous 10 years.[1] At the same time, multifamily permits plunged from more than 2,000 units a year at a 2019-2021 peak to 404 in 2024 and 357 in 2025, with rent stabilization cited as a factor deterring investors.[1]
St. Paul's 2023 zoning reform created H1 and H2 districts that allow four to five units per lot in most areas.[1] Advocates said the change aimed to boost gentle density, but the Fed dashboard shows the policy's benefits have been uneven, lifting small multifamily starts while bigger projects stalled.[1]
The dashboard shows inflation-adjusted typical rents fell from $1,618 in October 2020 to $1,456 in March 2026, and downtown vacancy dropped from 13.5% to 9%.[1] Still, 44% to 51% of renters spent more than 30% of income on housing over the past decade, and middle-income renters' cost burden exceeded 80% in 2022.[1] Median apartment sale prices in St. Paul fell 36% between 2020 and 2025, and annual property taxes on a median single-family home rose from $3,442 to $4,264.[1]
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📌 Key Facts
- St. Paul’s 2023 zoning reform (H1 and H2 districts) now allows 4–5 units per lot in most areas and helped push 2024 permits for 2‑ to 4‑unit buildings to 76 units, matching the previous 10 years combined.
- Multifamily permits in St. Paul plunged from over 2,000 units a year at the 2019–2021 peak to 404 in 2024 and 357 in 2025, with the report citing rent stabilization as a factor in investor hesitancy.
- Inflation‑adjusted typical rents fell from $1,618 in October 2020 to $1,456 in March 2026 and downtown vacancy dropped from 13.5% to 9%, yet 44%–51% of renters spent more than 30% of income on housing over the past decade, with middle‑income renters’ cost burden exceeding 80% in 2022.
- Median apartment sale prices in St. Paul fell 36% between 2020 and 2025 (from $160,525 to $103,249), while annual property taxes on a median single‑family home rose from $3,442 to $4,264.
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