Asheville Habitat Impact Report

40 YEARS

Impact Report

The transformative effect of affordable housing

Serving Buncombe & Madison Counties

my kids will always have a place to come home to.”

In November 2022 we launched a survey of all current AAHH homeowners with more than six months of tenure to learn as much as we could about how homeownership affected their households. In addition, seven families generously agreed to sit down and share their stories of homeownership in more detail. This report highlights some of the outcomes families described in the survey and interviews. Unless attributed, quotes were provided anonymously through the impact survey. Flip to the back page to learn more about the details of this survey.

“I still consider being a Habitat homeowner one of my greatest blessings in life. It allows me to work a job I love in the school system, continue to live in the city I love, and have a healthy work/life balance due to my affordable mortgage. Most of all,

TABLE OF CONTENTS

Financial

Increased savings and security

Page 4

Wealth Building

Asset accumulation

Page 6

Health

Improved physical and mental well-being

Page 8

Education

Greater academic success

Page 10

Community & Social Engagement

Stronger and expanded social networks

Page 12

Environment

Energy efficiency and reduced energy costs

Page 14

One of the best decisions I ever made.

FINANCIAL

Increased savings and security

Before Brigitte became a Habitat homeowner, she was plagued by financial questions: “Can I afford my place? Do I have to move? How am I going to pay for the car repair? What am I going to do about the gas bill?” When she moved into her new home, her total monthly housing costs went down by almost half. Haunting financial fears have been replaced by a profound sense of security. No matter what comes, “we can figure it out.”

Affordable homeownership has been a pathway to financial stability for Brigitte. Her experience and that of other Asheville Area Habitat homeowners helps illustrate the potential of affordable homeownership for transforming a household’s financial health. A steady, affordable mortgage can free up valuable resources for other vital needs while helping families build credit and plan for the future.

84% said Habitat homeownership positively impacted their finances

On the most fundamental level, Habitat homeownership has helped families build stronger financial foundations to pay their bills on time and take care of their family’s needs. For Michelle, an eleven-year homeowner, homeownership has meant “being able to take care of yourself and your family and feel like you have the freedom to make choices besides just having to pay the necessities.”

For many families, lower costs translate to an ability to save for the first time. With the cost savings on housing, Kelvin, a seven-year homeowner, has slowly built up an emergency fund. “You can put money away for [your kids] into the bank so they have something to start on. My son learned to save.”

Owning a home has been I look at other families in would have been us.

Given the chance to build credit on reasonable and affordable terms, many Habitat homeowners described a positive change to their credit scores. One homeowner on the survey wrote, “I have a credit score now and it is pretty good! Before I had no credit score at all!”

Respondents who identified as Hispanic or Latinx experienced very strong financial outcomes after homeownership, with all describing an improvement in their overall financial health.

43% of Hispanic respondents were “financially healthy” after homeownership a measure only achieved by 31% in nationwide surveys

47%

say they can handle a major unexpected expense completely well or very well compared to 17% before homeownership

Homeownership is financially empowering for many. Almost two decades ago, Katrina fought hard to repair her credit and attain homeownership. Accepting the mantle of homeownership made her “grow up financially,” she says. Maintaining her financial momentum became important to her. “You invest in things that are important.”

4 out of every 5 households said they had good to excellent credit

integral to my family’s well-being. the area struggling and I know that

Before becoming a Habitat homeowner, I never would have thought I would own a home or have money to save.

WEALTH

Asset accumulation

Estimated equity among 155 households of color

$32,817,528

Homes have historically been valuable assets for Americans. Homeowners build equity in their homes through paying down their mortgage and as their home appreciates in value over time. For most Americans, this home equity accounts for the largest share of their overall wealth, and helps explain why homeowners have an average of 4x the wealth of renters with similar economic backgrounds. Homeownership is an especially important catalyst for wealth creation among low- and moderate-income households who have fewer opportunities for wealth creation elsewhere. For these families, home usually represents the majority of their wealth.

Habitat homeownership has offered hundreds of families a pathway to wealth creation through home equity. Rather than paying rent to a landlord, families build equity through making an affordable mortgage payment on their own home.

$98,223

total estimated equity

$200,200 appreciation

equity through payment + forgiveness $47,617 homeowner’s pre-Habitat rent with annual market adjustment

$247,817 escrow $25,800

It has been extremely positive to build equity and have both a home and a financial resource.

Rent v. Habitat mortgage* comparing sunk costs & equity over 10 years

For many homeowners, home equity can be a resource that secures the future. Homeowners might leverage their equity in times of need, or to advance their family’s educational or career goals. If they ever need to move, they can use their equity to secure homeownership elsewhere. As one homeowner put it, “ I have enough equity in my home that I know, no matter what, we will be okay.”

more than

$70 million in equity for 335 households*

For many low-income families, affordable home ownership can be a gateway to intergenerational housing stability and wealth creation. Many Habitat homeowners are proud to note that their children are now homeowners themselves, or look forward to being able to leave the home to their children. Habitat now offers free estate planning for homeowners to ensure families’ assets are protected.

With an affordable Habitat mortgage, homeowners build equity even more quickly than they would be able to with a traditional mortgage.

Comparison of equity earned in Habitat mortgage vs traditional lender*

$5,262 home equity earned in first year of Habitat mortgage

$2,529 home equity + $7,115 interest paid in first year traditional mortgage

With a Habitat mortgage, homeowner paid $4,382 less and earned $2,733 more in equity

$17,467,964 mortgage interest savings to-date based on 374 households

*Figure combines equity realized on re-sale by 71 Habitat homeowners (adjusted for 2022 dollars) and estimated equity held by 264 current homeowners. Only Habitat homes sold before 2022 included. An additional twenty-seven homes were excluded due to incomplete information.

*Based on sample 3-bedroom home and average interest rate in 2018.

42% said their overall health improved

Improved physical and mental well-being

For Logan an Danyelle, and for many others, Habitat homeownership has ensured that they can lead healthy lives. Their stories demonstrate how affordable, secure, and safe housing can lead to improved physical and mental health in a myriad of ways.

Lower housing costs can free up resources for spending on healthcare and healthful activities. Because of their affordable mortgages, most Habitat homeowners now feel they can better afford necessary health care and treatments. One homeowner remembered that, “my family

was covered by Medicaid at times and at times I did not have health insurance. Since being a homeowner, my family has kept group health insurance. We can afford the premiums and [...] appointments as needed.”

57% improved their ability to afford medications

Muy positivo vivir en une casa de Habitat. Muestra salud esta mucho mejer. It is very positive living in a Habitat house. Our health is much better.

For many homeowners, knowing they can mantain safe and stable housing as they age is crucial to their physical and mental well-weing. Most Habitat homeowners describe a newfound sense of long-term housing security.

68% said their ability to age in place improved

Like Logan and Danyelle, the vast majority of Habitat homeowners described living in a healthier environment with fewer house-related health hazards. Childhood asthma and other respiratory conditions are among the most serious risks associated with exposure to these hazards, often impacting the health and environmental outcomes for children. Many children of

Habitat homeowners who said they suffered from such conditions noted a significant improvement in their health after homeownership. According to one homeowner, “my child has not had an asthma attack since we moved in.”

Many Habitat homeowners celebrate being able to play and exercise outside safely in their new homes, activities which are integral to a balanced, healthy lifestyle. While the public “green” areas of Kelvin’s apartment complex were full of permanent clotheslines, he has built his granddaughter a swing in the backyard of his home of seven years. “That was exciting to me.”

70% said their ability to play or exercise outside improved

Households of color often described thriving, healthy lives for themselves and their children after homeownership.

70% of respondents said their children’s health had improved or remained excellent after homeownership

Now at age 85, I’ve been thinking one of the best decisions I ever made was to buy this Habitat House well over ten years ago. It’s a safe feeling knowing this is my residence for as long as I want.

Greater academic success

For single, female-headed households, educational opportunity was especially profound.

over

40% of these respondents said that homeownership had enabled them or another adult to pursue further education

Jenny and Tim’s son had lived in no less than eight homes by the time he was ten years old. They feel that the process of going through the Habitat program – he even spoke at a fundraising event – and the security of their new home helped transform his school experience. “He’s matured and grown so much,” Jenny says. She notes that the first year they moved in was the first year she never got a phone call from school, and she believes the stability made a huge difference for him.

Many studies have linked homeownership with better school performance in grades, test scores, graduation rates, and higher education. This is particularly true for children of low-income homeowners when compared to families who rent. For these families, homeownership often means an increase in expendable income for educational needs and extracurriculars, a reduction in stress and other health challenges, greater educational stability, and better study conditions.

had children who had changed schools at least once due to a move

10%

39% changed schools 3 - 4 times

Due to a lack of affordable options, many Habitat families previously struggled with overcrowding, often making it hard for children to find a quiet place to study. After sharing a room with both of his siblings for the past decade, Logan and Danyelle’s oldest son finally got his own space three years ago. With the start of COVID-required remote learning, the timing could not have been more perfect. The change has had an enormous impact. “He really just blossomed in a way that I don’t think he would have if he weren’t here.”

For many, the cost savings associated with their affordable Habitat mortgage opened up new vistas for their children’s educational development, whether that was extracurricular activities or paying for college. Across three decades, children of Habitat homeowners have graduated high school at higher rates than all students at Asheville City and Buncombe County High Schools and at much higher rates than economically disadvantaged students in the area.

95% graduated high school

Many of these high school graduates went on to pursue additional education, developing their jobrelated skills and intellectual interests further. After going away to college in Oregon with a scholarship, homeowner Tikisha’s son worked for a Senator on housing and transportation issues, even meeting with Habitat staffers in D.C. Having stable housing helped the family plan for his higher education, where he was able to continue his passion for politics and community development.

children of Habitat homeowners

43% improved their grades

55% went on to further education, including job training programs, community and technical colleges, four year universities, and advanced degrees

The educational benefits of affordable homeownership were not limited to children of homeowners. With affordable mortgages and a reduction in stress, many Habitat homeowners or other adults in the home were able to pursue further education.

I was able to cut down on hours at work to be able to go to school full time where I was able to receive my LPN, and now RN license.”

Being in a Habitat home allowed me to support my husband to go back to get training as truck driver (CDL) and Hazmat driver.

Stronger and expanded social networks

Homeownership did not create Tikisha’s sense of community responsibility, but it helped offer her the time and security to live those commitments to the fullest. Over the last two decades as a Habitat homeowner, she has nurtured relationships with many of her neighbors and spent countless hours maintaining the community spaces. She even helped build a “little free library” in the neighborhood, complete with kid’s activities, canned food, and a fresh herb garden. You also might spot her volunteering at Southside Community Farm, a BIPOC-led urban farm in one of Asheville’s legacy neighborhoods. Everywhere you look, Tikisha is giving of herself to the community.

For Tikisha and many other Habitat homeowners, homeownership has nurtured feelings of social connection and supported or inspired greater engagement with their communities. Affordable homeownership has helped families build stronger and more expansive social networks.

Many Habitat families find a feeling of connection in their new homes and neighborhoods. For Katrina, it was important to be able to bestow a sense of safety and community in her children, so it was a relief to move into her home nineteen years ago and find that “my kids and my grandkids can go outside and just play and everybody looks out for each other.”

after Habitat

It has been wonderful in our community to get to know each other and be involved in family gatherings, watching the children grow and move on, coming back married with grandchildren. We talk to each other. Take care of each other.

37% increased their engagement in social and community activities

32%

67%

Homeownership has offered some homeowners new leadership opportunities. Six-year homeowner Kelvin has embraced the notion of community responsibility, joining the Board of the Homeowners Association (HOA) and fostering community with neighbors.

83% are registered to vote

Research shows that people with stronger social capital and more community engagement are more likely to engage with the democratic system through voting and civic involvement. Habitat homeowners report participating in the political system at higher rates than the broader community.

Respondents who identified as Black or African American describe expanding their social and community involvement even more significantly.

42% of those said they began to engage in community activities more often

Energy efficiency and reduced energy costs

Brigitte remembers that poor insulation paired with oil heat in her rental meant the winters were financially brutal. “I’m not going to let my kids be cold,” she says, so that meant the small supplemental check she received every winter went straight to filling the oil tank instead of paying for necessary expenses, buying Christmas gifts, or going into savings.

Even when they don’t rely on oil heat, low-income families often find themselves in homes with poor energy efficiency and struggling with high energy cost burdens.

3 bedroom Habitat home energy savings compared to homes built 2001 - 2011, 1,000 - 1,176 sq ft

$490/year 316 kwh/mth

According to the Department of Energy, low-income households in North Carolina spent between eight and ten percent of their income on energy in 2019.

Though every household’s size and energy needs are different, data shared by existing Habitat homeowners demonstrates the financial and environmental benefits of energy efficiency. With energy efficient homes, Habitat homeowners can reduce their energy consumption, lower their energy costs, and minimize their environmental footprint.

1 bedroom Habitat home energy savings compared to homes built 2008 - 2021, 500 - 792 sq ft

$861/year

556 kwh/mth

In our Habitat home our bills are consistent. We don’t just all of a sudden have a $400 heating bill because we’ve got to fill a gas tank and the windows are drafty.

Ensuring Energy Efficient Habitat Homes

Homebuyer education classes. Habitat works hard to ensure homebuyers understand the importance of changing out their returnair and heat-recovery-ventilator filters every three to six months, for example. An in-depth class about home-system maintenance is required and a short refresher is provided during the final walk-through on closing day.

AAHH has built the most Green Built certified homes in the state!

ENERGY STAR® appliances.

High-efficiency vinyl windows

High-efficiency heat pump and water heaters.

Insulation. R-18 spray foam insulation, R-15 wall insulation, R-19 floor insulation.

Sealed crawl space. Continually monitoring the moisture levels throughout construction of the home and fully encapsulating the space as soon as it is feasible to do so.

At Asheville Habitat, we have always sought to understand and highlight the many benefits of affordable homeownership. However, until now, we have usually posed these benefits as likely outcomes in the future – what will happen. As the organization approached its 40th anniversary, we decided to look back - to ask families what did happen.

In November 2022, we launched a survey asking all current AAHH homeowners with more than six months of tenure (264 households) over sixty questions. Our hope was to better understand the household-level impact of forty years of our work.

To gather as much feedback as possible, we worked hard to lower barriers to participation. We made the survey available online or in paper format as well as in five languages, and offered a gift card in thanks for respondents’ time and energy. We reached out to homeowners to encourage them to participate via email, postcard, letter, text message, and phone. Finally, we offered anonymity protections to encourage homeowners to speak freely on their experiences.

We feel blessed to have received responses from 45% of eligible households. In addition, we are especially grateful to the seven families featured here who agreed to sit for an in-depth interview about their experiences, and the numerous others who gave us direct feedback. In this report, survey responses and interviews are supplemented by internal data regarding home equity and energy usage.

A survey of this magnitude takes time and commitment from everyone involved – staff, volunteers, and especially homeowners. We are grateful that so many Habitat homeowners took the time to share their experiences with us. In many ways, this report is a celebration of all that they have achieved. We look forward to applying the lessons we learned as we grow and improve the program over the next forty years.