Finding solutions to Greater Minnesota’s housing crisis

21 Sep 2023


Like other Greater Minnesota cities, Grand Rapids needs more housing. But city officials aren’t blaming developers for the shortage of affordable, workforce and market-rate units.

Residential developers want to do business in the northeast Minnesota community, where rental vacancy rates are under 1%, says Rob Mattei, the city’s community development director. Even so, rising construction costs, higher interest rates and flat rental rates are barriers to construction.

In the past, he said, the city has been able to use tax increment financing housing districts to stimulate development of homes for working families. But with costs on the rise, the gaps are larger and those tools are no longer sufficient.

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