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

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

42% said their overall health improved