To increase housing stock, Cloquet overrides zoning to approve multi-family homes

Macklin Caruso, The Pine Journal, Cloquet, Minn.
·2 min read
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Jun. 21—CLOQUET — As it aims to increase its housing stock to address a shortage driving up costs, the city is issuing permits to construct two multi-family homes in an area zoned for single-family residences.

The City Council unanimously approved the permits Wednesday, June 19, following the Cloquet Planning Commission's recommendation.

James Kuklis of Kuklis Construction plans to construct and sell two twin townhouses on a vacant lot located north of Wilson Avenue and west of 16th Street, just west of Cloquet High School. Though the area is zoned for single-family residences, the units will be located behind Aspen Arms and White Pine Apartments.

The city approved the permits partly because it presents a small opportunity to address a persistent housing shortage.

"It would be good to have some more housing," Mayor Roger Maki told the council. "Something should go in there."

Housing shortages across Carlton County are straining the real estate market and driving up homeownership and rent costs to increasingly unaffordable levels,

according to a comprehensive study

conducted on behalf of the county.

Kuklis said the townhouses are ideal for seniors looking to downsize from their single-family homes.

"By them moving out of their house, they then make it possible for a younger couple to buy a home in Cloquet, so it's good for everyone," Kuklis said.

The lack of local homes for sale is causing the real estate market to bottleneck. Between 2019 and 2023, median home sale prices increased by 10% per year in the county, with the median home value estimated to be $218,000 in 2022, according to the study.

This is pushing would-be homebuyers out of the market and into rental units, which had a vacancy rate of 2% in 2022 — significantly tighter than the statewide vacancy rate of 7%, according to

Federal Reserve Economic Data.

The city is pursuing multiple projects aimed at increasing and maintaining housing stock. This includes converting

the condemned Solem Hotel

into an 18-unit apartment complex and renovating

Larson Commons.

Earlier this month,

the city established a housing trust

that allows the city to use state funding to provide affordable housing.