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New Research Highlights the Benefits of Shared Equity Homeownership

By Kelly Wagoner May 22, 2019

Shared equity homeownership programs, including community land trusts, provide affordable homeownership to lower-income families generation after generation, according to a new study by the Lincoln Institute of Land Policy in partnership with Grounded Solutions Network.

In particular, the analysis of more than 4,000 housing units across 20 states over a 33-year period shows that these programs mitigate the risks of traditional homeownership, strengthen residential stability, and promote equitable wealth building.

“While Elevation Community Land Trust is a newly formed entity and we’re just starting our work here in Colorado, this study proves that the community land trust model is a tool to stabilize housing, create generational wealth and economic mobility, and build critical and permanent public infrastructure that supports inclusive communities that work for everyone,” said Stefka Fanchi, CEO. “We are proud to be a part of a growing movement with such a powerful impact on the people it serves, and we look forward to partnering with Colorado communities to build opportunity through shared equity homeownership.”

Here are some of the key findings:

  • The median shared equity household accumulates approximately $14,000 in earned equity compared to a $1,875 median equity investment at purchase
  • Seven out of 10 shared equity homeowners are first-time homebuyers
  • 95 percent of shared equity mortgages are affordable (less than 30 percent of monthly income) for households earning under 80 percent of area median income

Read the full report.