Month: January 2025

Research Series: How does homeownership contribute to wealth building

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Decent, affordable housing provides a solid foundation for households, from economic stability to increased access to education. However, low-income households and households of color in the U.S. have limited access to homeownership due to barriers such as limited supply of affordable housing, restricted access to credit and systemic inequities. 

Through a series of evidence briefs, Habitat is bringing to light research on the impact that affordable housing has on individuals and families at home and beyond. This brief looks at how homeownership can be a catalyst to wealth building for low-income households and households of color. Home equity accounts for over half their net wealth, but these gains from homeownership vary by income, gender and race/ethnicity.

Research highlights

Homeownership promotes wealth building by acting as a forced savings mechanism and through home value appreciation. Wealth building hinges on the homeowners’ ability to build home equity. 

Key factors to building home equity for low-income households 

  • Providing affordable financing and refinancing loans at lower interest.
  • Sustaining homeownership to allow homebuyers to recoup the transaction costs associated with the purchase of a home and to weather home value fluctuations.
  • Purchasing homes with appreciating home values that increase the equity in the home, especially at the time of resale, but the rate of appreciation depends on the timing and location of the home purchase.  

Key barriers to homeownership for women ​​​​​​

  • Single women pay approximately 1%-2% more for comparable properties than single men, and then sell these homes for 2%-3% less. 

Key barriers to building home equity for Black and Hispanic/Latinx households 

  • Black and Hispanic/Latinx homebuyers tend to use debt to finance homeownership and face more expensive mortgage financing, paying higher mortgage rates. 
  • Homes purchased by Black homebuyers tend to be lower-valued, appreciate more slowly and have higher property taxes. 
  • Black and Hispanic/Latinx households are less likely to sustain homeownership.

Habitat for Humanity committed to long-term recovery following California wildfires

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ATLANTA (Jan. 10, 2025) — Habitat for Humanity teams are readying their response as wildfires continue to rage across Southern California. Initial reports indicate some Habitat homes were destroyed in the region and the organization will continue to conduct assessments as soon as it is safe to do so.

Those who wish to donate to Habitat’s response to the fires and other disasters, can do so at habitat.org.

“Our prayers are with every person affected by the devastating wildfires in California, including those Habitat homeowners, staff and volunteers that lost their homes, schools, places of worship and entire communities,” said Adrienne Goolsby, Habitat for Humanity International’s senior vice president, U.S. and Canada. “In moments, the trajectory of these families’ lives was indelibly altered, and the years-long recovery effort that lies ahead is both daunting and essential. Habitat is committed to the long-term rebuilding of affected communities and will work to ensure families impacted by this disaster have a safe and affordable place to call home.” 

Already one of the most destructive disasters in California history, wildfires ravaging the southern part of the state have damaged or destroyed thousands of homes and placed nearly 180,000 residents under evacuation orders. The fires destroyed some Habitat homes according to San Gabriel Valley Habitat for Humanity. In addition, Habitat for Humanity of Greater Los Angeles, which helped rebuild more than 120 homes following wildfires in 2018, is assessing the damage and is particularly concerned about families whose damaged homes were either uninsured or underinsured.

Habitat for Humanity International’s disaster response teams are actively supporting the local recovery effort. Habitat’s role will primarily be in the long-term recovery of wildfire-ravaged communities, following the immediate response. Long-term recovery is among the greatest and costliest challenges in disaster response and recovery, particularly as communities work to ensure the lower-income populations that Habitat serves are not left behind. 

About Habitat for Humanity 

Driven by the vision that everyone needs a decent place to live, Habitat for Humanity found its earliest inspirations as a grassroots movement on an interracial community farm in south Georgia. Since its founding in 1976, the Christian housing organization has since grown to become a leading global nonprofit working in local communities across all 50 states in the U.S., Puerto Rico and more than 70 countries. Families and individuals in need of a hand up partner with Habitat for Humanity to build or improve a place they can call home. Habitat homeowners help build their own homes alongside volunteers and pay an affordable mortgage. Through financial support, volunteering or adding a voice to support affordable housing, everyone can help families achieve the strength, stability and self-reliance they need to build better lives for themselves. Through shelter, we empower. To learn more, visit habitat.org.

Article – Habitat For Humanity International