Balancing Affordability and Opportunity: An Evaluation of Affordable Homeownership Programs with Long-term Affordability Controls

Research Report

Balancing Affordability and Opportunity: An Evaluation of Affordable Homeownership Programs with Long-term Affordability Controls

Abstract

Shared equity initiatives provide homeownership opportunities to income-eligible families who buy homes at below-market prices; the appreciation that can be earned by resellers is limited to preserve the homes' affordability at resale. This report analyzes affordability, personal wealth, security of tenure, and mobility outcomes for seven shared equity programs across the country. Homebuyers earned competitive returns, but homes remained affordable to lower income buyers over time. Homeownership under these programs was sustainable: there were very low delinquency and foreclosure rates and many families who sold their homes were able to use their sales' proceeds to purchase market-rate homes.

To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.