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Minnesota Homeownership Rate Falls 1.3 Points to 63.8% in Q4 2023

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  Published in House and Home on Wednesday, November 26th 2025 at 19:40 GMT by CBS News
      Locale: Minnesota, UNITED STATES

Minnesota’s Homeownership Rate Declines as Affordability Pressures Mount

Recent data from the U.S. Census Bureau indicate that Minnesota’s homeownership rate slipped to 63.8 % in the fourth quarter of 2023, down from 65.1 % a year earlier. The drop of 1.3 percentage points is the state’s steepest decline in more than a decade and mirrors a nationwide trend that has seen homeownership fall for the first time in several years. The CBS Minnesota article, published in early November 2023, breaks down the numbers, explores the forces behind the shift, and highlights the broader implications for communities, renters, and the local economy.

The Numbers Behind the Decline

The article cites the Census Bureau’s “Household Ownership Status” (HOS) series, which surveys a nationally representative sample of households each quarter to gauge whether they own or rent a dwelling. In Minnesota, the 2023 HOS release shows a homeownership rate of 63.8 %, a 1.3‑point dip from 65.1 % reported in 2022. The national average, meanwhile, slid from 66.4 % to 65.7 % over the same period.

A graph in the piece tracks Minnesota’s homeownership rate over the past ten years, revealing a steady climb from roughly 60 % in 2013 to a peak of 66 % in 2019, followed by a gradual decline that accelerated after the pandemic‑era boom. The chart also shows that the decline is most pronounced in the metro areas—particularly Hennepin, Ramsey, and Dakota counties—while rural counties exhibit more muted changes.

Why the Drop? Rising Costs and Changing Demographics

Several factors converge to explain the downturn. The article emphasizes that mortgage rates have risen sharply since the peak of the pandemic housing market, making financing more expensive for prospective buyers. In 2022, the average 30‑year fixed‑rate mortgage hovered around 3.5 %; by late 2023, it had climbed to 7.0 % on average, a doubling that many borrowers find prohibitive.

The article links to a CBS News piece on the national mortgage‑rate surge, noting that the Federal Reserve’s tightening cycle has pushed rates higher, dampening demand for new home purchases. Because Minnesota’s median home price remains high relative to median household income—at roughly 3.5 times income—affordability challenges are especially acute for first‑time buyers and young professionals.

A second key driver is the ongoing “Millennial Affordability Gap.” The article points to a local study from the Minnesota Housing Finance Agency (MHFA) showing that nearly 70 % of households aged 25–39 still rent. Even as home prices rise, many in this demographic find that renting remains the only viable option, especially when factoring in student loan debt and the lack of available entry‑level properties.

The decline also reflects a broader aging trend. Older homeowners are more likely to downsize or sell, often moving into retirement communities or apartments. The Census Bureau’s HOS data confirm that the homeownership rate for those 65 and older is around 82 %, while the rate for the 25–34 age group sits at a low 32 %. The article notes that, as a larger proportion of the population moves into this age bracket, the overall rate naturally falls.

Local Impact: Tax Revenues, Community Stability, and Rental Markets

Homeownership is a cornerstone of municipal revenue streams in Minnesota, as property taxes fund schools, roads, and public services. A 1.3‑point drop in ownership could translate into a measurable decline in local tax collections. The article quotes a county finance official who warns that even a modest reduction in property tax income could force budget cuts in community services.

The shift toward renting also reshapes the housing market. According to the article, the rental vacancy rate in the Twin Cities region dipped from 2.5 % in 2022 to 1.8 % in 2023, reflecting increased demand as renters are priced out of the buying market. The article links to a CBS News story that profiles landlords who are now turning to short‑term rentals and “Airbnb‑style” accommodations to maximize income, which could further reduce long‑term rental availability.

Finally, the piece touches on the social implications of declining ownership. Homeowners tend to invest more in neighborhood maintenance and community engagement than renters. “If fewer people own homes, we may see less neighborhood cohesion and weaker civic participation,” notes a community planner referenced in the article.

Where to Go From Here: Policy and Solutions

The CBS Minnesota article calls for a multi‑pronged approach to reverse the trend. Suggested measures include:

• First‑time buyer assistance – expanding down‑payment subsidies and offering lower‑interest mortgage products.
• Affordability zoning reforms – encouraging the construction of smaller, affordable units in high‑cost areas.
• Income‑support programs – linking housing assistance to workforce development and student‑loan repayment options.
• Data transparency – making detailed homeownership and affordability metrics available to policymakers and the public.

The piece references the Minnesota Department of Commerce’s recently released “Housing Affordability Report,” which provides county‑level data and policy recommendations. It also links to a CBS News special on “National Housing Policy: Lessons from the Midwest,” offering a broader perspective on how states can address affordability while preserving community stability.

Bottom Line

Minnesota’s homeownership rate’s slide to 63.8 % is a signal of deeper economic and demographic shifts that go beyond a simple dip in housing demand. Rising mortgage rates, escalating home prices, and a younger generation that prioritizes flexibility over ownership are all contributing to the trend. As the state grapples with these challenges, the article underscores the importance of coordinated policy interventions, data‑driven planning, and community engagement to ensure that Minnesota remains a place where families can thrive—whether they own or rent their homes.