Minneapolis Leads The Way in State’s ADU Construction

While the topic of Accessory Dwelling Units (ADUs) doesn’t come up as often as it did in the decade since the city of Minneapolis started allowing them, they do show up in headlines, conversations and legislation from time to time.

During its last session, the Minnesota state legislature voted not to allow these “granny flats” statewide. Yet, according to the Minneapolis Star Tribune, almost 50 cities statewide see these small units as a component of solving the state’s housing crisis.

The problem is, they can be expensive to build. The city of Edina estimates the minimum cost to build an ADU to be $100,000 for one that’s incorporated into an existing building, with an independent structure costing upwards of $350,000.

And yet, despite the cost, states like California have seen as many as 1 out of every 5 new homes be an accessory dwelling unit, so there must be something more at play.

There is. Many Minnesota municipalities have ordinances that have so many building restrictions that it’s almost impossible. These run the gamut from exterior materials that match the main house to size, to parking restrictions.

This cost and restrictions have been prohibitive. In the decade since Minneapolis first began allowing ADU’s, just 232 have been built. That’s just 1% of the properties that are eligible to have one.

St Paul and the suburbs haven’t fared a whole lot better. St Paul has added 25. Scandia leads the way for the suburbs with 12, followed by Stillwater and Orono with 11 each.

As more and more cities look for ways to address the state’s housing shortage, perhaps things will change.