Minnesota’s housing market reflects a complex tapestry of challenges and opportunities, particularly for communities striving to achieve stability and equity in homeownership. Racial disparities in homeownership rates in Minnesota rank among the worst in the nation: While 78% of white households in the state own their homes, only 31% of Black households are homeowners.
Over the past two decades, the state has experienced significant shifts in housing affordability, access and disparities — underscoring the urgent need to reshape perceptions and systems to create a more inclusive future. “The most significant disparities in this state right now are between the homeownership rates for Black households and white households,” said Gabriela Norton, research manager for the Minnesota Housing Partnership.
Trent Bowman, vice president and community impact manager at Bremer Bank, offers his 20 years of experience, perspective, and advice to address these disparities. “Blacks and people of color should focus on consultation about homeownership first, and then the mortgage and lender applications.
“We should also look for affordable housing in inner-city pocket neighborhoods. Once we’re in these neighborhoods, we should set the tone by being model homeowners, thereby influencing our neighbors to do the same, which will eventually improve the value and surroundings of the neighborhood.”
With positive homeownership stories and intentional efforts to address racial gaps, Minnesota can pave the way for equitable housing opportunities and stronger communities. A common narrative suggests a scarcity of affordable housing, but the reality is more nuanced. Affordability often hinges on education about housing, awareness about location, and lifestyle behaviors.
“From where I sit,” Bowman says, “there is talk that there aren’t affordable homes, but the way I see it, there are. It’s really about housing education and location. People don’t want to live in certain areas based on their perception and rumors.
“But I believe it boils down to knowledge and affordability. For your starter home or home of choice you may have to live in an initially less desired pocket area, but you can improve it based on how you maintain your lifestyle. You don’t want to just make the mortgage — you want to improve neighborhoods by being willing to move into them, change them, still do your hobbies, and maintain a certain way of life.”
Perceptions about certain areas, shaped in part by media narratives, play a significant role in how people approach housing. “I am not blaming the media, but negative matters in the city tend to be highly shared more than others,” Bowman says.
“We need to not only measure the negatives — let’s celebrate or publicize the positivity in the Black community. Festival for Fathers, for example, is free for the community, but people don’t come because they don’t know. Urban League Family Days is another positive thing that doesn’t get enough attention.”
By shifting the narrative toward celebrating positive community efforts and investments, more people may see value in underserved neighborhoods. To reduce disparities, particularly in underserved areas like North Minneapolis, partnerships with developers and policy adjustments are essential.
“If there was a way to build or get with some of the developers to provide tax credits to build certain homes in North Minneapolis instead of creating fourplexes, that could make a difference,” Bowman says. “Build affordable homes like they did after WWI and WWII.”
Credit access remains a pivotal factor in housing disparities. Many individuals in marginalized communities lack the education and resources needed to build strong credit profiles, resulting in fewer opportunities to secure affordable mortgages. Teaching financial literacy, particularly in the Black community, can address generational gaps in credit knowledge.
“If we didn’t learn about credit in high school, we have to take time to learn it. Blacks, from my experience, tend to understand how much they have access to buy, but, really, we need to know more. We also need to make credit positive, so it is impactful for our future.
“It’s also about changing behavior. You must live within your means to increase access and improve your credit standing.” Strong credit is more than a number — it’s a gateway to opportunities. A lower credit score translates into the less you receive. A credit score of 700 or higher gives you more power, Bowman says.
Rising interest rates pose another hurdle, but perspective matters. “Two percent and 3% were unusual rates in the past, but 6.785% is not a high rate,” Bowman explains.
For lower-income individuals, affordability is the guiding principle. “Buy in the pocket of communities you can afford,” he advises. “When you do, you can be the pillar to move the neighborhood in a positive direction. If one family takes care of their home, it starts to spread across all neighbors.”
Minnesota’s declining homeownership rates among certain demographics underscore the importance of education and tailored support. Many first-time buyers lack understanding of the full scope of homebuying costs.
“We need to focus on consultation before application,” Bowman says. “Meet with someone who has your best interest and learn more.”
However, many potential buyers remain unaware. To unlock homeownership and help Minnesotans build wealth, the state created a three-year $150 million fund in 2023 to provide down payment assistance to first-generation homebuyers. The fund is set aside for people who’ve never owned a home and whose parents never owned a home — or those who lost their home to foreclosure.
The program was designed to help close racial disparities in homeownership rates across the state. It operates on a first-come, first-served basis until the money runs out. In order to access those funds, however, would-be homebuyers must first take a class available through the Minnesota Homeownership Center.
“Don’t do a mortgage loaning application over the phone,” Bowman says. “It’s too important of a process and decision not to understand the details that can only be understood through a face-to-face discussion.
“Black first-time-or-not homebuyers should change personal circumstances,” Bowman adds. Change your narrative to setting the wealth for yourselves and your families to build generational wealth. It’s hard, but we can change what we’re doing.”
Ultimately, housing equity goes beyond affordability — it’s about building thriving communities. By prioritizing education, accessibility, and collective action, Minnesota can reshape its housing landscape and empower its residents to achieve lasting stability and equity.
Housing is more than a place to live; it’s the foundation for thriving lives and communities. “To cultivate thriving communities, we need to understand the programs, obtain education, and take advantage of the housing opportunities,” Bowman says.
“Black and underserved communities can then change the narrative, build generational wealth, and reshape our future. But it starts with informed action.”
Tonya Jackman Hampton is an author with a doctor of education and an MBA. She is a native Minnesotan.