Minneapolis Mixes Affordability, Opportunity, and Wealth

[Annette Lealoni Chavez]

According to studies, Minneapolis is one of the 3 cities that have some of the most affordable real estate and are also included in America’s 100 biggest metropolitan areas. Nineteen companies that are in the Fortune 500 have come out of Minneapolis, and in the last 60 years forty companies from Minneapolis have made it to the Fortune 500. The real estate in Minneapolis is accessible to young middle class families, and there are great job opportunities. So what makes Minneapolis so affordable although it is ranked up with New York, Los Angeles, and San Francisco?

Since the 1970’s Minneapolis had concentrated on preventing ghettos from forming and sharing the wealth with the lower class. In 1971, Legislatures passed a law that contributed half of the growth in commercial tax revenues to a regional pool. This helped disperse the wealth to lower income families. In 1976, Minnesota passed a law that made communities incorporate low-income units into some of the wealthiest neighborhoods. Although this is not practiced anymore, it helped prevent ghettos from forming for decades, and it created an atmosphere of equality.

The Miracle of Minneapolis
Fiscal Equalization is still used today Minneapolis, and it is the reason low class individuals have been able to move to the middle class status. Business taxes are used to make great schools, great neighborhoods, and an overall great environment for the low class. This motivates individuals to get a higher education, which leads to booming businesses that end up on the Fortune 500.

[Chase Lalouette]

The fact that demand for land is so low that Minneapolis has some of the lowest real estate prices, yet is one of the largest metropolitan areas, tells me that most of the people who already live there, do not want to. This means that the residents are trapped, deprived, or simply feel stuck. The Fortune 500 companies’ employees probably live in pockets of higher income housing or the suburbs.

You cite redistribution of wealth as the means by which the city prevented “ghettos”, however I dare to claim that this practice actually further trapped the indigent population. They became dependent on the city, who placed them in housing that they would probably never be able to afford on their own. They divided the indigent population, preventing them from build strong community with people of similar socio-economic class (and most likely culture for that matter). If they were not trapped before, the “equality” legislation made sure that they were.

I agree that investing in schools leads to higher quality of life for those in attendance, but I still think that Minneapolis has actually worsened the lives of the general lower class as a whole. If most of the lower class had risen to middle class status, then redistribution of wealth would no longer be needed. However, their ascension is a façade, their socio-economic status will only last as long as the rest of the city’s population pays for their housing, education, and other social programs. The lower class is trapped and they are being told that they are on top of the world.

[Annette Lealoni Chavez]

At this point, there might be more of a gap between the rich and the poor, however Minneapolis did a way better job at preventing ghettos for a very long time than many other cities. It is a young skyscraper city that is currently growing and expanding. If you are a young couple that wants to find cheap real estate, where there is enough entertainment, Minneapolis would be a place to consider moving to. Like in all cities the lower class will be lacking a lot more than the middle class or higher class, but that doesn't mean they will be miserable.