Redfin’s latest study on metros with the highest rates of low-income homeownership looks like this:
Metro % Low Income Median Income Median Price
Minneapolis 57.7% $55,000 $255,000
Pittsburg 55.8% $41,000 $149,000
St. Louis 55.5% $43,000 $173,000
Detroit 55.0% $40,200 $122,000
Tampa 54.4% $36,000 $220,000
Louisville 54.2% $41,750 $181,000
Salt Lake City 53.8% $52,000 $319,000
Nashville 53.7% $43,400 $284,000
Charlotte 53.1% $40,600 $230,000
Philadelphia 52.6% $51,000 $190,000
Redfin also found that the coastal metros of Los Angeles, New York and San Francisco had the lowest homeownership rates for low-income workers at 31%, 35% and 37.6% respectively.
Daryl Fairweather, Redfin’s Chief Economist, said, “Homeownership allows people to share in the prosperity of their communities and gain wealth through home equity…with (mortgage interest rates) no longer near historic lows, buyers are increasingly cost-conscious, seeking more affordable homes in low-tax states in the South and the middle of the country.”
Minneapolis clearly has what it takes to attract low-income buyers to its metro…good jobs, a large supply of condominiums and townhomes that are available at lower prices than median prices for the area and a large geographic area from which to choose. Additionally, the metro has recently passed new regulations that encourage people of different means and backgrounds to invest in housing.
According to Chris Prescott, Redfin’s Market Manager in Minneapolis, “There are still some great locations in the area where homebuyers can purchase a single-family fixer-upper at an affordable price and build equity.”
Thanks to Alcynna Lloyd, a reporter with HousingWire, for the source material for this post.