Minnesota Has Among The Highest Increase In Homeownership in The Nation Since 2010
Recent data from the U.S Census Bureau shows how rapidly homeownership has risen during the pandemic, and Minnesota was in the Top 10 for the highest increase in homeownership rate.
Minnesota Showed The 8th Largest Increase In Home Ownership Since 2010
According to data from the U.S Census Bureau and Filter Buy, in 2010 Minnesota had a homeownership rate of 72.6% and in 2020 that number rose to 74.5%. Below is a short breakdown of Minnesota's performance over the last 10 years in the housing market.
• 10-year percentage point change in homeownership: +1.9
• Homeownership rate (2020): 74.5%
• Homeownership rate (2010): 72.6%
• Median home price: $307,644
In comparison to the rest of the country, that actually saw the 10-year percentage poinit change in homeownership decrease.
• 10-year percentage point change in homeownership: -0.3
• Homeownership rate (2020): 66.6%
• Homeownership rate (2010): 66.9%
• Median home price: $303,288
How Has The COVID-19 Pandemic Affected The Housing Market?
The COVID19 pandemic created many different paths for people on different income scales. According to the study from Filter Buy, low income earners were more likely to lose their job, while middle and upper middle class income earners were able to benefit from low interest rates to purchase real esate.
Low-income earners were more likely to lose their jobs or have hours cut back and as a result relied more on government stimulus measures like direct payments, expanded unemployment benefits, eviction moratoriums, and mortgage forbearance programs to keep their housing arrangements. Meanwhile, middle and upper income earners were able to benefit from low interest rates, strong savings and market returns, and increasingly flexible work policies to seek out new homes.
The interest in buying homes led to a sky-high demand for residential properties/real-estate and the homes were quickly sold at record prices. During the COVID-19 pandemic, housing increased by 2 percent, and the raw number of owner-occupied units rose by 4.6 million, to 83.8 million.
While the COVID-19 pandemic helped acclerate the demand for homes, the price increases as a result put homes out of reach for lower-earning households per the website.
These households are often found in demographic groups that have historically faced more challenges in achieving the goal of homeownership. In particular, younger Americans and racial and ethnic minorities own homes at lower rates than other parts of the population.
The rate of home ownership declined since the Great Recession and the collaspe of the housing market, but it began to slowly increase across the country since 2015. Over the last year, that slow increase turned into a sharp spike.
Which States Had The Greatest Increase In Homeownership Since 2010?
Maine, Delaware, and Maryland were the top three states in the highest increase of homeownership in the last 10 years. You can see the full list from Filter Buy here.