Tracking Shared Equity Homeownership Growth And Performance Across Housing Market Fluctuations.pdf

This Working Paper analyzes the growth, characteristics, and performance of shared equity homeownership programs across four US housing market periods (1985–2000, 2001–2006, 2007–2012, 2013–2018). Using data from the HomeKeeper National Data Hub, it reveals:

- Racial Diversity: The shared equity sector increasingly serves people of color, with minority households' share rising from 13% to 43% during the housing recovery period.
- Affordability: 95% of shared equity homes are affordable for families earning up to 80% of area median income (AMI), with a median subsidy depth of 31%. The housing cost burden remains below 30% for these households across all periods.
- Wealth Accumulation: Median shared equity households accumulate approximately $14,000 over their participation period, compared to a median equity investment of $1,875 at purchase. While homeownership carries risk, sellers overwhelmingly experience wealth increases during all market periods after accounting for principal repayment.
- Stability: Shared equity models provide stable housing, with an average annual move rate of 2.6%, significantly lower than the national average of 6.9%. Over 58% of shared equity homeowners choose to purchase again when they sell and move.
- Funding Trends: Public funding for shared equity programs fluctuated, increasing during boom and bust periods but decreasing during the housing recovery period, reflecting overall growth patterns in the shared equity stock.
- Demographics: Shared equity programs tend to serve similar families across geographies and market periods—first-time homebuyers, low-income households (51–80% AMI), female-headed households, aged 30s, employed in office, retail, or service industries.

The study concludes that shared equity homeownership mitigates risks associated with traditional homeownership, promotes residential stability, and facilitates equitable wealth building.