If you want to find affordable housing, you might want to try Minneapolis, where the inflation rate is surprisingly low

The balcony of the Guthrie Theater in Minneapolis, MN offers a stunning sight of the Mississippi River and the Stone Arch Bridge.

Minneapolis has become the primary urban center to register inflation rates that fall beneath the Federal Reserve's desired 2% objective.

As reported by Bloomberg, Minneapolis achieved its target in May, recording an inflation rate of 1.8%.

The increase is probably a result of proactive lawmaking aimed at tackling the escalating housing expenses in the urban area.

According to Bloomberg's report, Minneapolis has become the initial significant urban region to achieve an inflation rate below the Federal Reserve's desired 2%. This accomplishment is expected to be a result of the city's efforts to curtail the surging housing expenses throughout its vicinity.

The reason why Minneapolis has been able to maintain a relatively low level of inflation can be attributed in part to their decision in late 2018 to abolish single-family zoning. This measure applied to approximately 70% of the residential areas in Minneapolis, as reported by Bloomberg. By lifting this restriction, Minneapolis has been able to increase the population density within the city.

Ever since the zoning modification, the city of Minneapolis has dedicated more than $300 million towards providing aid and financial support for renting, thus simplifying the construction of apartments and condominiums.

Based on the latest information from the US Bureau of Labor Statistics, Minneapolis registered a mere 1.8% rate of inflation in May.

Aside from experiencing a slower rate of price escalation, an analysis conducted by Bloomberg revealed that the metropolis boasted relatively economical measures of income allocation towards rental expenses when compared to its counterparts in the league of major cities.

According to Bloomberg, people living in Minneapolis allocated 39.9% of their monthly earnings to cover housing expenses, whereas those residing in San Francisco dedicated 46.7% of their monthly income towards housing. Residents of Boston, on the other hand, astonishingly spent 60.7% of their income solely on housing costs.

According to reports from CNBC, individuals residing in New York City may need to allocate nearly 70% of their income every month to afford the rent for an average apartment.

According to Andrew Aurand, a senior executive at the National Low Income Housing Coalition, it is advisable for individuals to allocate approximately 30% of their earnings towards housing. As a result, Minneapolis stands out as one of the major cities that come close to meeting this recommendation.

According to Ron Feldman, who is the vice president at the Minneapolis Fed and also the co-chair of the Itasca Project, the housing market in the Twin Cities has always been relatively inexpensive compared to the rest of the country. In order to maintain its affordability, we are making efforts to preserve the current state.

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