A housing recovery is underway, but the homeownership gap in Minnesota is deepening
- Blog Post by: Jim Buchta
- May 27, 2014 - 9:54 AM
The foreclosure crisis in Minnesota is nearing an end, but communities of color are still struggling to keep pace with the recovery. That's according to an annual report released this morning by the Minnesota Homeownership Center, which provides homeownership counseling, foreclosure prevention service and other support to Minnesota homeowners.
For example, in North Minneapolis prices have fallen so far that a homeowner who bought in 2006 at the neighborhood’s median price would need to see their 2013 home value increase by 85 percent to return to its purchase price. On the other hand, in Southwest Minneapolis, house prices have risen to pre-crash levels.
“This report gives us a clear understanding of how homeownership impacts communities – from safe neighborhoods and engaged citizens, to better educational achievement and health – as well as the barriers and opportunities that will influence our next generation of homebuyers,” said Julie Gugin, executive director of the Minnesota Homeownership Center.
- Other highlights:
- The state’s nearly 12,000 foreclosures in 2013 matched the number experienced in 2006 – the first year of the crisis -- and were less than half of the more than 26,000 of foreclosures experienced at the peak in 2008
- Even though a housing recovery is underway, Minnesota’s homeownership gap now stands near levels not seen since 1990. Closing that gap will require stabilizing the hardest-hit neighborhoods by tailoring the education and support to the needs and cultures of future homebuyers of color.
- What influences the next generation of buyers: For Millennials, home purchases have been delayed by a slow start to their careers and high levels of student loan debt. Still, 93 percent of Millennial renters hope to own a home someday.
- In greater Minnesota, local economies and the availability of homes are driving the next generation of homeownership.
This June, the Minnesota Homeownership Center and its network of nonprofit partners, the Homeownership Advisors Network, will offer free homebuyer education to potential homebuyers
Click here for info.
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