In fact, more than three of every four Minnesota households own their home. Yet the recent economic downturn and foreclosure crisis have threatened our legacy of ownership, turning attention from homeownership’s community benefits to home sales prices and financial measures that are easy to track but curb our thought.
• Creating long-term assets and wealth
• Fostering engaged citizens
• Advancing safe and vibrant communities
• Supporting better educational outcomes
• Promoting better physical and mental health
Preserving these benefits will take new strategies that build on Minnesota’s history of supporting smart homeownership choices in ways that make sense for the next generation of homebuyers.
Trends in the state of homeownership today include:
• Neighborhoods Are Recovering Unequally, Adding To The Homeownership Gap. The foreclosure crisis is nearing an end in most of Minnesota, but in the Metro Area neighborhoods where communities of color are the majority of residents, impacts of the foreclosure crisis continue to linger. For example, in North Minneapolis prices have fallen so far that a homeowner who purchased in 2006 at the neighborhood’s median price would need to see their 2013 home value increase by 85% to return to its purchase price. A typical homeowner in Southwest Minneapolis, on the other hand, has already recovered any value lost in the housing downturn. Minnesota’s homeownership gap grew during the foreclosure crisis, and now stands near 1990 levels.
• The Next Generation of Buyers Are Influenced By Personal, Local Economics. For example:
o Millennials. A full 93 percent of Millennial renters plan to own someday. But deciding when to buy is a choice driven by personal debt, career, marriage and other personal factors.
o Greater Minnesota. Local economies and the availability of homes are driving the next generation of homeownership in Thief River Falls, where shortages in homes available for purchase, and housing generally, mean few options to buy even as major employers Arctic Cat and Digi-Key continue to add jobs.
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The Minnesota Homeownership Center empowers smart homeownership choices and vital communities by offering education, synthesizing research and building partnerships. We believe that smart, sustainable homeownership is an essential asset for people and families, and anchors vibrant communities where engaged citizens, safe neighborhoods, thriving schools and healthy people converge.