Skip to main page content
U.S. flag

An official website of the United States government

Dot gov

The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Access keys NCBI Homepage MyNCBI Homepage Main Content Main Navigation
. 2021;31(6):1032-1049.
doi: 10.1080/10511482.2021.1949372. Epub 2021 Aug 9.

Transitioning to Homeownership: Asset Building for Low- and Moderate-Income Households

Arthur Acolin  1 , Alex Ramiller  2 , Rebecca J Walter  1 , Samantha Thompson  1 , Ruoniu Wang  3
Affiliations

Transitioning to Homeownership: Asset Building for Low- and Moderate-Income Households

Arthur Acolin et al. Hous Policy Debate. 2021.

Abstract

This paper assesses the asset building of households that take part in shared-equity homeownership (SEH) models. The contribution of this paper is a comparison of outcomes for households participating in shared-equity programs to other low- and moderate-income households who rent or own properties without restrictions on appreciation. We matched participants in SEH programs to households with similar characteristics from the Panel Study of Income Dynamic (PSID) over the 1997-2017 period. The findings indicate that in real terms, median SEH homeowners accumulated about $1,700 in housing wealth annually or around $10,000 during their holding period. This amount is lower than the $2,100 median annual gain in home equity experienced by similar PSID owners but statistically and economically significantly larger than the $16 in annual gain experienced by similar PSID renters. The findings provide evidence that households participating in SEH programs experienced positive, but modest, wealth gains that were slightly lower than homeowners in unrestricted units but substantially higher than renters.

Keywords: Asset building; G51; Homeownership; R21; Shared equity homeownership; Wealth accumulation.

PubMed Disclaimer

Figures

Figure 1:
Figure 1:. Absolute Standardized Mean Difference
a- SEH Owners vs. PSID Owners b- SEH Owners vs. PSID Renters
Figure 1:
Figure 1:. Absolute Standardized Mean Difference
a- SEH Owners vs. PSID Owners b- SEH Owners vs. PSID Renters
See this image and copyright information in PMC

References

    1. Acolin A, Goodman LS, & Wachter SM (2016). A renter or homeowner nation? Cityscape, 18(1), 145–158.
    1. Acolin A, Lin D, & Wachter SM (2019). Endowments and minority homeownership. Cityscape, 21(1), 5–62.
    1. Baker K, & Kaul B. (2002). Using Multiperiod Variables in the Analysis of Home Improvement Decisions by Homeowners. Real Estate Economics, 30(4), 551–566.
    1. Barakova I, Bostic RW, Calem PS, & Wachter SM (2003). Does Credit Quality Matter for Homeownership? Journal of Housing Economics, 12, 318–336.
    1. Belsky ES, & Duda M. (2002). Asset Appreciation, Timing of Purchases, and Sales, and Returns to low-Income Homeownership. In Retsinas NP & Belsky ES (Eds.). Low-Income Homeownership: Examining the Unexamined Goal, pp.208–238. Washington, DC: The Brookings Institute.

LinkOut - more resources