Economic growth has varied tremendously across regions of the United States over the past several decades. In this paper, I develop a dynamic quantitative spatial model to study the distributional implications of this uneven growth. The model incorporates two key mechanisms that link welfare to local economic conditions: migration costs and homeownership. Using the model, I show that uneven regional growth has important distributional consequences. On average, a 1% shock to local productivity raises residents’ welfare by 0.50%. The pass-through from local productivity shocks to welfare varies substantially across the age and wealth distribution. I find that homeownership plays a central role in spatial redistribution: in an otherwise similar model without homeownership, the average welfare effect of the same shock is just 0.19%. This is because house price changes counteract the welfare effects of wage changes for renters, but augment them for homeowners. Finally, I analyze the effects of two housing policy counterfactuals: relaxing land-use regulations and eliminating the mortgage interest deduction. Both policies mitigate spatial redistribution, but the link between welfare and local economic conditions remains strong.