Tim Meyer is a Duluth architect and community builder writing about Downtown Duluth, politics, business, sports and economic development. Reach him at tim.meyer@meyergroupduluth.com
A question comes up almost daily: What will it take to build more single-family housing in Duluth and across the region? The answer may be simpler than many expect — return to what once worked. Duluth needs to revive an “old-school” approach to housing development.
Today, single-family construction faces significant headwinds. High labor costs, elevated interest rates and persistent inflation have stalled new development. Labor expenses, while essential to sustaining a skilled workforce, remain one of the largest barriers to building new homes efficiently. Combined with rising energy prices and expensive land, the financial gap between planning a project and making it viable has widened dramatically.
At its core, the housing shortage is a supply-and-demand problem. Population and housing needs continue to grow while new construction lags far behind. Without meaningful increases in supply, affordability will remain out of reach for many families.
Reversing the trend requires municipalities to take a more active enabling role. Cities such as Duluth should again focus on preparing subdivisions — assembling land, installing roads, drainage and utilities, and creating build-ready lots. Parcels of one-half to three-quarters of an acre could then be offered to builders and developers, removing a significant portion of upfront financial risk.
If the financing gap remains, projects simply will not move forward. Tools such as tax-increment financing and temporary tax deferments should be considered where appropriate. Just as important is honest collaboration with developers. Housing will not be built unless builders can operate profitably. The city’s role is not to construct homes itself, but to create conditions that allow development to succeed.
Higher-density housing should remain a priority downtown. Minneapolis’ Washington Avenue district demonstrates how concentrated residential development can reshape an urban core, attracting investment and supporting retail and commercial growth. Duluth can pursue similar momentum by recruiting experienced developers and encouraging projects that bring new residents into the downtown area.
A catalytic investment — such as relocating portions of University of Minnesota Duluth or College of St. Scholastica programming downtown — could accelerate that transformation.
Recruitment must also replace passivity. Issuing requests for proposals and waiting for interest is no longer sufficient in a competitive housing market. Cities must actively pursue developers already delivering successful projects elsewhere and demonstrate that Duluth welcomes investment.
Local government processes also require attention. Developers frequently cite planning and permitting hurdles as deterrents to investment. Former Mayor Don Ness’ “One Stop Shop” concept streamlined approvals and reduced uncertainty; restoring and strengthening that model could help rebuild confidence. Assigning a dedicated project manager to guide each development through city processes would signal a clear commitment to efficiency and partnership.
Transparency in land availability is another missing piece. A centralized, publicly accessible database of developable property would simplify site selection for builders while giving landowners broader exposure to potential buyers.
Duluth should also expand the range of housing types under consideration. Tiny homes, cottage housing and premanufactured construction have lowered costs in other communities, with some units built for approximately $100,000 and smaller cottage homes below $250,000. Housing cooperatives and shared living models have also proven successful elsewhere and could help diversify local options.
Recent updates to the city’s Uniform Development Code allow many of these alternatives. The next step is ensuring they are practical to implement. None of these challenges are unsolvable. But solving them requires acknowledging economic realities and aligning public policy with a single, sustained priority: increasing housing supply.
For a period of time, housing must move to the top of the civic agenda. Incremental efforts and competing priorities have not produced results. Meeting Duluth’s housing needs will require focus, coordination and a willingness to try new approaches grounded in proven ideas.
The status quo is no longer working. If Duluth wants growth, stability and affordability, it must act decisively — and return to the fundamentals that once made housing development possible.
