The Homeownership Gap: Trends in the Twin Cities Metro During the Housing Crisis

Kayla Schuchman

Research output: ThesisMaster's Thesis


Homeownership is thought to be an important contributor to the economic and social well--being of individuals and communities, and as such has been supported by years of federal and state policy. One such state policy in support of homeownership is the Emerging Markets Homeownership Initiative convened by the Minnesota Housing Finance Agency (Minnesota Housing), the Federal Reserve Bank of Minneapolis, and Fannie Mae in 2004. Since the initiative was developed in 2004, the U.S. has undergone a housing crisis and the ensuing recession, and there have been massive changes in the state of homeownership. It is likely that the crisis has affected households of varying races, income, geography, and education differently, including who has access to homeownership and who has the ability to successfully sustain homeownership. Because of the important role homeownership is thought to play, and the drastic changes to the housing market in recent years, examining recent changes to White-- minority homeownership gaps is critical. Further, the particular characteristics of the homeownership market in Minnesota cause this to be an important area of study. As of 2009, while the state of Minnesota had the highest overall homeownership rate in the nation (at73.7 percent), it had the fifth largest White--minority gap in homeownership rates (at 34.1 percentage points)(Grover & Patterson 2010). Further, preliminary data analysis indicates that the situation in Minnesota has worsened, and that as of 2011, Minnesota continued to have the highest overall homeownership rate in the nation (at 72.8 percent), but now with the largest White-Minority gap in homeownership rates in the nation (at 38.7 percentage points). In addition, an increasing percentage of Minnesota residents are minorities, with this trend projected to continue so that minorities will represent nearly 25 percent of Minnesotas population by 2035 (Grover & Patterson 2010).
Original languageEnglish (US)
Place of PublicationMinneapolis, MN
StatePublished - 2012
Externally publishedYes

Fingerprint Dive into the research topics of 'The Homeownership Gap: Trends in the Twin Cities Metro During the Housing Crisis'. Together they form a unique fingerprint.

Cite this