Shared Equity Homeownership Evaluation: Case Study of Northern Communities Land Trust

Kenneth Temkin, Brett Theodos and David Price
Shared equity homeownership initiatives provide below-market homeownership opportunities to income-eligible families in return for a share of the owner's potential capital gains at resale. This case study analyzes affordability, personal wealth, security of tenure, and mobility outcomes for the Northern Communities Land Trust (NCLT), which operates in Duluth, MN. NCLT owners realized high returns, but resold homes saw a modest decrease in affordability over time. Foreclosure rates for NCLT homes are below the area's already-low average. And even though nearly all NCLT buyers were first-time homeowners, most resellers are able to purchase market-rate homes when leaving the program.
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