Sharing Equity with Future Generations: An Evaluation of Long-Term Affordable Homeownership Programs in the USA

Journal Article

Sharing Equity with Future Generations: An Evaluation of Long-Term Affordable Homeownership Programs in the USA

Abstract

Shared equity initiatives provide homeownership opportunities to low- and moderate-income families who buy homes at below-market prices. The appreciation that can be earned by resellers is limited to preserve the home's affordability at resale. This article analyses seven shared equity programs, finding: homebuyers earned returns that were competitive with alternative investments; homes remained affordable to lower-income buyers over time; delinquency and foreclosure rates were very low; many families who sold their homes were able to use the proceeds to purchase market-rate homes; and owners showed little evidence of being locked in place.

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