Downtown Duluth Study: 2,500 New Housing Units Possible Within 5 Years

DULUTH, Minn. – A downtown Duluth housing study shows the potential for as many as 2,500 new housing units within the next five years. It’s a welcomed projection for a downtown that’s seen undesirable vacancy rates since the pandemic, like other cities have experienced across the country.

The outside firm, Zimmerman-Volk Associates, presented its findings publicly Tuesday, which shows downtown Duluth well positioned for a comeback as long as developers and city leaders work together to turn vacant buildings into housing downtown.

“Most successful downtowns are the result of the public sector and the private sector working together, not against each other,” said Laurie Volk, of Zimmerman/Volk Associates.

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Since the pandemic, downtown Duluth has struggled to bring back pre-pandemic foot traffic, leaving plenty of space for adaptive re-use and new construction — particularly housing, according to Volk.

Volk said Duluth already has solid foundation blocks for a brighter future, especially with views of Lake Superior.

“It’s the seat of government, it’s the seat of cultural institution. Your main hospital is here. Downtown Duluth has an enormous amount of assets, theaters. And restaurants will come back. Get more people and the retail will come back,” Volt said.

Mayor Emily Larson said the study was one of 27 recommendations that came out of her Downtown Task Force. She said the study will greatly help give more confidence in developers to see what is possible downtown.

“I was thinking about everything we’ve been doing downtown these last few years … from the hospital to the NorShor, to Minnesota Power Plaza, to what will happen with the NLX (Northern Lights Express) and my vision for the library. And then on every single one of those blocks in between is housing opportunity, after housing opportunity, after housing opportunity,” Larson said.

Meanwhile, Larson also teased a major announcement happening Thursday for a new downtown adaptive re-use housing development with Titanium Partners.