COLUMBUS, Ohio (WCMH) — Ohio is among the top five states with the largest percentage point differences in homeownership rates between white and minority communities, a new study has found.
The Buckeye State is home to the fifth largest gap as minority homeownership in Ohio is 30.5% lower than the white homeownership rate, according to a report from Construction Coverage analyzing U.S. Census Bureau data. North Dakota is ranked first with a 35.9% gap, South Dakota is second with 33.2%, New York is third with 30.8% and Wisconsin is fourth with 30.5%.
“The minority homeownership gap varies across the U.S. due to factors such as local demographic makeup and historical ownership rates,” the report states. “On a regional basis, the minority homeownership gap is largest in the Midwest and the Northeast.”
Cleveland is home to the largest gap among cities with a population of more than 1 million at 34.7%, while Cincinnati is ranked sixth at 30.9% and Columbus is 12th with 28.7%. Milwaukee is ranked second with a 32.3% gap, Buffalo is third with a 32% gap, Rochester is fourth with a 31.7% gap and Memphis is 31.1% gap.
Nationally, minority homeownership is 22.3% lower than the white homeownership rate. The report states minority homeownership varies by race and ethnicity as the Asian community has the highest rate at 62.8% and the Black community has the lowest rate at 44.3%.
Homeownership gaps have widened between Black and white communities since 1960, the report shows.
“[Black communities] were hit harder than other groups by the housing crisis in 2008 because they more frequently bought homes at the height of the bubble and were disproportionately the victims of subprime loan lenders,” the report states. “As a result, Black home ownership fell substantially, and the homeownership gap grew.”
Gaps also exist between median property values, the report shows. In Cleveland, the minority median property value is $130,000 while the white median property value is $200,000. The trend continues as the minority value in Cincinnati is $180,000 while the white value is $210,000. In Columbus, the minority value is $220,000 while the white value is $250,000.
Learn more and view the entire report here.