Corporate Landlords Buy Up Twin Cities Homes, Outcompeting Potential Black Homeowners

<p>The Twin Cities have the largest gap in homeownership between Black and white residents - 51% -  and the gap is widening. The reason? Gentrification and the rise of single family rentals owned by investor companies.<br>--<br>Tiffany Bui reports: </p><p><br></p><p>In the Twin Cities, the gap between the number of Black residents who own their home and white residents is the widest in the country.</p><p><br></p><p>Researchers from the Urban Institute found that, Black homeownership has declined dramatically since 2000. This resulted in a 51 percentage point difference between the two groups.</p><p><br></p><p>Yonah Freemark, one of the researchers, identified two reasons that contribute to fewer Black homeowners: gentrification, and the rise of single family rentals owned by big investor companies.</p><p><br></p><p>“So the Great Recession, and the years that followed, were associated with a significant increase in foreclosures, especially among homeowners of color,” explained Freemark. “And so there were a lot of investors who were able to sort of leverage the inability of people of color to continue to own their homes and buy up residences in those neighborhoods.” </p><p><br></p><p>The companies that own the most single family rentals in the Twin Cities include Front Yard Residential Corporation  and Invitation Homes. These investors buy up properties in typically low-income and minority neighborhoods like North Minneapolis and central St. Paul. This funnels the wealth out of neighborhoods; researchers estimate about 1 billion dollars worth in Hennepin and Ramsey counties over a period of 15 years. </p><p><br></p><p>Catrice Williams heads a team of financial coaches for Project for Pride in Living, a Minneapolis organization that prepares people to buy a home. She said more investors in the market can make it harder for individuals to win a bid, especially for those who can’t afford to come with cash in hand.</p><p><br></p><p>“So they can't buy and they can't build wealth. And that puts them right back