As today’s data will illustrate, foreclosures are not distributed throughout the city equally. So here are a couple of things to keep in mind while sifting through this data table.
First, 37 percent of the foreclosures in Minneapolis resided on the north side of the city in 2016 – 22.4 percent of the foreclosures were in the 4th Ward and 14.6 percent of the foreclosures were in the 5th Ward.
Second, these were the only two wards with a foreclosure percentage greater than 10 percent. Of course, these two wards have been like this for sometime.
I wrote about this very subject a few times back in 2015. As I explained back then in A Comparison of Minneapolis’ Foreclosure Rates by Ward and Foreclosure Rates: Wards 4, 5, and 10 from 2006 to 2015, the 4th and 5th Wards accounted for about 40 percent of the foreclosures in the city. And as this current data illustrates, these two wards still account for about the same percentage.
Minneapolis: 2016 Foreclosure Data
|Ward||1st Quarter||2nd Quarter||3rd Quarter||4th Quarter||Total||Percent|
(Source: City of Minneapolis)
So as far as proportionality is concerned, not much has changed.
The bright side is that foreclosures have definitely decreased in both wards. However, the question is what will happen to these wards when the market decides to take another nose dive?
The 4th and 5th Wards are not as economically stable as other parts of the city. But the point here is that education, as we’ve seen, provides greater earnings power, and thus greater economic stability and security. Of course as the readers of this blog know very well, earnings increases with education according to the data that has been observed so far.
So it should follow that more education will facilitate greater earnings which will in turn facilitate greater economic stability and security which in turn will decrease foreclosures.
Going forward, what does the foreclosure data look like for 2017 and how does it compare to 2016? And what does the system’s behavior of this foreclosure data look like over the period of a few years? Are foreclosures decreasing throughout Minneapolis and are there any wards that are bucking this trend? And the big question, will this even have an impact on the mayoral and city council races?
Matt has a Bachelor of Science in Systems Science, with focuses in applied mathematics and economic systems, from Iowa State University. He is also a professional member of the Society of Industrial and Applied Mathematics and the International Society for the Systems Sciences and a scholarly member of Omicron Delta Epsilon, which is an International Honors Society for Economics.
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