Research Series: How does homeownership contribute to wealth building

no alt text set

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

no alt text set

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

Ribbon Cutting; Home Dedication; Public Meeting; Fundraiser

There will be a Newton Chamber of Commerce Ribbon Cutting at our newest home, 408 E. 5th, on Wednesday, Nov. 6th at 4:00pm. The following Sunday, Nov. 10 at 4:00pm will be the Home Dedication. The public is invited.

==========

We are accepting homeowner loan applications for our 2020 home. To receive an application, please attend a public meeting on Tuesday, Nov. 12, 7:00pm – at the Newton Recreation Center.

Anyone interested in learning more about Harvey County Habitat for Humanity may join us as well.

A Spanish interpreter will be available.

If you cannot attend this meeting, and you feel you meet the basic qualifications found on our “Do I Qualify” page – please call 620-869-5124 and an application can be delivered to you. All completed applications MUST be returned by Nov. 30, 2019. No late applications will be accepted.

==========

Our Annual Fundraiser is scheduled for Thursday, Nov. 21 at 6:30pm. This enjoyable, by-donation event includes a delicious pork chop dinner, music by Gail & Mark Stucky, and a live auction! We hope you can join us. Free tickets are available from your favorite Harvey County Habitat for Humanity Board member, or call Michele at 620-869-5124 to reserve yours today.

408 E 5th – Work dates and groundbreaking ceremony

We can use around 25 volunteers on Saturday, May 4, for building walls and erecting. We need experienced carpenters as well as persons who can assist by carrying material and help with lifting. Appropriate clothing for these jobs is recommended. Bring gloves, hammer, tape measure, pencil, nail pouch, etc. We will find tasks for all who come. I will be calling for skilled lead persons to direct certain tasks.


Also, at 10:00am on the 4th we will have a formal groundbreaking ceremony. Even if you can’t come to work, we hope you’ll join us for this special time of celebration!


On Saturday, May 18, we could use about 10-12 individuals for more carpentry tasks. Work on both dates will commence at 8:00 am and conclude about 2:00 or 3:00 pm, depending on how many volunteers participate.

Fundraiser Update

no alt text set

Our 2018 Fundraiser was the best one yet! Thank you to the generosity of our attendee’s and auction item donors, we raised over $20,000. We had some fun along the way too. Please put a reminder on your calendar for November 2019, so you too can join the fun. Exact date to be determined, but it is generally held on the 3rd Thursday.  Stay tuned…

HCHH Annual Fundraiser

November 15th, 2018
6:30pm at Faith Mennonite Church

Our annual fundraiser this year features a delicious pork chop meal, music by The Book of Jebb, and a live auction. Contact us to reserve your tickets or notify any Board member. We thank you for your generous support, we couldn’t fulfill our mission without YOU. We look forward to seeing you there!