Homeownership gap widens in the Twin Cities
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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