The Twin Cities already has the largest homeownership gap between Black and white residents in the nation, and the chasm is widening.
Driving the news: Black homeownership in Hennepin and Ramsey counties has fallen from 31% of households in 2000 to 21% in 2018, according to the Urban Institute's study released on Friday.
- Meanwhile, white homeownership in those counties has remained steady at 70%.
What they found: The trend is driven by gentrification as well as a rise in corporate-owned, single-family home rentals (SFRs).
- "SFR units — especially all those that are investor-owned — have become increasingly concentrated in neighborhoods with higher shares of low-income residents and residents of color," the report says.
- The number of SFR units shot up from 22,000 to 48,000 between 2005 and 2020, according to the report.
Why it matters: Homeownership is a way for families to build wealth and some of these investors of low-income house rentals have a bad reputation for letting their properties fall into disrepair.
How it works: The Urban Institute used U.S. Census data and property records from Ramsey and Hennepin counties, which make up about half of the metro population.
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