Minneapolis may offer the most possibilities for low-income households to become homeowners. The city has the nation’s highest homeownership rate among households in the bottom 25 percent of income at 57.7 percent, according to a new analysis from Redfin of the 50 largest metros. Pittsburgh and St. Louis followed on the list, also having homes that tend to sell for less than the national median of $285,000.
“Homeownership allows people to share in the prosperity of their communities and gain wealth through home equity,” says Redfin Chief Economist Daryl Fairweather. “In many expensive metros, low-income residents aren’t able to access the benefits of homeownership because of a lack of affordable starter homes. But in areas like Minneapolis and Pittsburgh, low-income workers are still able to get their foot in the door on the American dream of homeownership.”
The following are the metros with the highest homeownership rates for low-income households, according to Redfin’s analysis:
1. Minneapolis
- Homeownership rate among households in bottom 25% of income (2017): 57.7%
- Median sales price: $255,000
2. Pittsburgh
- Homeownership rate among low-income households: 55.8%
- Median sales price: $149,000
3. St. Louis
- Homeownership rate among low-income households: 55.5%
- Median sales price: $173,000
4. Detroit
- Homeownership rate among low-income households: 55%
- Median sales price: $122,000
5. Tampa, Fla.
- Homeownership rate among low-income households: 54.4%
- Median sales price: $220,000
6. Louisville, Ky.
- Homeownership rate among low-income households: 54.2%
- Median sales price: $181,000
7. Salt Lake City
- Homeownership rate among low-income households: 53.8%
- Median sales price: $319,000
8. Nashville, Tenn.
- Homeownership rate among low-income households: 53.7%
- Median sales price: $284,000
9. Charlotte, N.C.
- Homeownership rate among low-income households: 53.1%
- Median sales price: $230,000
10. Philadelphia
- Homeownership rate among low-income households: 52.6%
- Median sales price: $190,000
Louisville, Charlotte, and Nashville saw the largest uptick in low-income homeownership from 2012 to 2017.
Meanwhile, some metros—particularly the pricey coastal markets—saw some of the lowest
Source: “Minneapolis, Pittsburgh, and St. Louis Top Metros With Highest Homeownership Rates for Low-Income Families,” Redfin (March 4, 2019)
