Minnesota residents are among the most likely to own their own homes in the country
Homeownership has been a long-standing aspiration for millions of Americans. According to a Gallup poll, more than nine in ten American investors consider owning a home an essential or important part of the American dream. Homeownership can also be one of the best and most convenient ways to build wealth, both through equity appreciation and tax deductions.
The past year has been a historic year for the US real estate market. An increase in demand, fueled by the COVID-19 pandemic and record mortgage rates, has helped push the national homeownership rate – or the share of owner-occupied dwellings – to 67.9% in the second quarter of 2020, its highest level in over a decade.
Yet homeownership rates vary widely in the United States, and in some areas of the country people are much more likely to own their homes than in others.
According to the American Community Survey of the US Census Bureau for 2019, the most recent year of data available at the state level, Minnesota has the third highest homeownership rate among the states, at 71.9 %. As a benchmark, the nationwide homeownership rate that year was 64.1%.
Homeownership rates in different parts of the country are affected by many factors, including the cost of housing. While this is not always the case, states with more expensive real estate often have lower than average home ownership rates, while areas with lower home prices often have lower home ownership rates. of high accession.
In Minnesota, a typical house is worth around $ 246,700, which works out to the national median of $ 240,500. Although the median home value is in line with the national median, homeowners are more likely than average to pay off a mortgage. An estimated 65.1% of owner-occupied dwellings in the state have a permanent mortgage, compared to 61.7% nationally.
All of the data used in this article, including additional data on the median value of owner-occupied homes and the percentage of homes with a mortgage, are from ACS 2019. States have been ranked by number of homes. owner-occupied units as a proportion of all occupied housing units.