Dr. Bruce Peter Corrie, Professor of Economics, ALANA Brain Trust
According to a report of Minnesota Housing Agency, Draft Chart Book: Key Housing Needs and Issues (2023), 70,000 ALANA Households are potentially income ready to buy a home having household income greater than $35,000 in Greater Minnesota and $40,000 in the metro area. Below is a slide from the report.
It is also estimated that 75 percent of these households are credit ready to qualify for a mortgage.
Using this data, we can estimate the number of African American households who are potentially ready to own a home in Minnesota.
Minnesota Compass provides data on African Americans in Minnesota: https://www.mncompass.org/topics/demographics/cultural-communities/african-american
64.9 percent of African Americans have income at or above $35,000 to $45,000.
Total African American households – 133, 989 (ACS 2022)
64.9 percent of these households – 86,959 (ACS 2022)
Existing homeowner households – 39,259 (ACS 2022)
Homeownership potential gap = 47,700 households (64.9 percent of households minus existing homeowners)
Adjusting for 75 percent of these households are potentially ready to own a home – we have 35,775 African American households.
Percentage of African Americans between 25-44 years – 31.5 percent (ACS 2022)
Adjusting homeownership potential households for the 25-44 year group = 11,269 households
Prime Working age African American Households with a potential to be a homeowner – 11,269 households.
Number of loans through Minnesota Housing 12,000 annually to ALANA homeowners.
In these two numbers above we have the policy challenge and opportunity for Minnesota.
Slides are from Minnesota Housing Agency Report. Draft Chart Book: Key Housing Needs and Issues (2023),
