OUR IMPACT

The Case for Habitat Homes

Lakeshore habitat's positive impact on children

Donors

the impact of lakeshore habitat for humanity

Why is Lakeshore Habitat for Humanity's work so important? Because homeownership transforms lives—and it is increasingly out of reach for many.

Learn more through a series of Evidence Briefs created by Habitat for Humanity International.

Evidence Brief 1: Who has access to homeownership?

Housing inventory does not meet demand

In 2018, the U.S. Department of Housing and Urban Development estimated a need for 2.5 million additional housing units to meet long-term housing demand.

How Habitat helps

Habitat affiliates expand housing inventory that is affordable to low-and moderate-income households.
Habitat advocates at all levels of government for programs and policies that fund and stimulate new development and preservation of affordable housing.

Home prices have been increasing rapidly

Prices for more affordable homes (those affordable at 75% of the metro area median income [AMI] and below) have increased at nearly twice the rate of expensive homes (affordable at 125% of metro AMI and above).

How Habitat helps
Habitat partners with volunteers and Habitat homeowners and relies on efficient building methods, modest house sizes, and no-profit loans to keep costs low.

Tight lending standards and strict credit standards prevent homeownership for many

The tightening lending standards after the Great Recession (2007-09) was a key factor in declining homeownership rates.

How Habitat helps

Habitat selects families based on level of need, residence in affiliate’s service area, willingness to partner with Habitat, and ability to repay an affordable mortgage.
Habitat’s lending standards and terms are less subject to market fluctuations.

The homeownership rate of Black and Hispanic/Latinx households trails that of white households

In addition to the key barriers faced by all potential homebuyers, racial and ethnic minorities face systematic inequities, including discriminatory housing policies and institutional barriers. As much as 17% of the homeownership gap cannot be explained by sociodemographic factors (e.g., income, age, family size, marital status, gender), and researchers hypothesize that the remaining gap may be explained by information networks, limited access to credit, discriminatory housing policies (e.g., redlining, racially restrictive covenants, and zoning policies) and other institutional barriers.

How Habitat helps

Habitat serves a diverse base of homeowners.
Habitat advocates for anti-racist housing and land-use policies.

Household demographics of Lakeshore Habitat

Download Evidence Brief 1

Evidence Brief 2: What are the benefits of homeownership?

Wealth and financial stability

Homeownership is a catalyst to wealth building.
• U.S. homeowners have an average net wealth that is 400% higher than that of renters with similar demographics and earnings, and home equity represents the largest proportion of wealth (34.5%) for U.S. households.
• Each year of homeownership tends to be associated with an additional $9,500 in net wealth, on average.
• In 2019, net wealth was lower for lower-income ($9,300), Black ($24,100), and Hispanic/Latinx households ($36,050) than for higher-income ($1,589,300) and white households ($189,100). Home equity represented a larger share of net wealth for low-income households and Black and Hispanic/Latinx households.

How Habitat helps

Habitat partners with families to lower barriers to affordable homeownership.
Habitat focuses on working with low- and moderate-income homeowners.

Educational achievement

Homeownership leads to better test scores and higher rates of high school graduation and college attendance.

Children of low-income homeowners are 11% more likely to graduate from high school and 4.5% more likely to complete post-secondary education than children of low-income renters.
Homeowners can leverage their housing wealth to finance post-secondary education for their children. A $10,000 increase in housing wealth raises the probability of college attendance by 14%.

How Habitat helps

Habitat helps families with children access homeownership.
Habitat offers families stability through shelter, which benefits children through consistency in schooling and minimized disruptions to their education.

Civic and social engagement

Homeownership promotes civic and social engagement, regardless of the income level.

Homeowners are more likely to vote in local elections than renters in comparable neighborhoods.
Homeowners are 1.3 times more likely to become involved in a neighborhood group and to join a civic association than renters.
Low- and moderate-income homeowners have more social capital resources, such as a larger social network.

How Habitat helps
Habitat requires future homeowners to contribute a total of 250 “sweat equity” volunteer hours on build sites for other homeowners as well as on their own home build. This investment by families in both their home and their neighbors’ homes helps contribute to a sense of community among homeowners.

Physical and mental health

Decent, affordable housing improves physical and mental health.

Homeowners are more likely to occupy homes with fewer repair needs than renter households.
The CDC identified home improvement as one of six evidence-based, high-impact solutions for addressing social determinants of health.
Decreasing housing costs for cost-burdened households releases resources to spend on nutritious food and health care.

How Habitat helps

Habitat lowers the cost of homeownership and makes it easier for future homeowners to access quality housing.
Habitat’s repair programs help homeowners address acute housing problems and improve the quality of their homes.

Reduced environmental footprint

Affordable, sustainable homes reduce energy consumption.

Newer homes have greater energy efficiency than older homes. As of 2015, 17% of single-family homes built before 1980 lacked proper insulation, 21% of homes had heating systems at least 20 years old, and only 11% had received an energy audit.
Low-income households have higher energy burdens, spending three times the share of their annual income (7.2%) on energy costs as compared with other households (2.3%).

How Habitat helps

Habitat builds new homes sustainably, using green building techniques.
Habitat’s energy-efficient designs and repairs lead to financial savings for homeowners.

Download Evidence Brief 2

Evidence Brief 3: How does Habitat homeownership contribute to wealth building?

For low-income households

For low-income households and households of color, homeownership can be a catalyst to wealth building—in the right scenario.
Homeownership promotes wealth building by acting as a forced savings mechanism and through home value appreciation.

How Habitat helps

Habitat affiliates help homeowners build equity by keeping the cost of homeownership affordable. Habitat is committed to ensuring mortgage payments consume no more than 30% of a homeowner’s income.
Habitat affiliates also provide financial education classes and pre- and post-purchase counseling that provide tools and strategies to manage household finances

For women

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

How Habitat helps

Habitat homes are priced at fair market value and are not subject to the negotiating ability of the homebuyer or any implicit bias or prejudice on the part of their real estate agent.
Mortgage payments for Habitat homes are kept at 30% of the homeowner’s monthly income. This model ensures that Habitat homes are affordable regardless of gender and protects women from paying higher costs for their homes.

Civic and social engagement

The homeownership rate of white households continues to exceed those of Black and Hispanic/Latinx households. And Black and Hispanic/Latinx homebuyers face key barriers that may impact their ability to build equity.

How Habitat helps

Habitat serves a diverse range of homeowners, providing more equitable access to low-cost financing that can help support building home equity.
The counseling and classes offered by Habitat affiliates can help [ . . .] better position [homeowners] to sustain homeownership.

Household demographics of Habitat Affiliates

Download Evidence Brief 3

Evidence Brief 4: How do racial inequities limit homeownership opportunities?

Overview

Black and Hispanic/Latino households face unique barriers to homeownership that prevent access to the beneficial outcomes associated with homeownership, such as wealth building, improved health and higher educational attainment. Historically, structural and institutional obstacles faced by racial and ethnic minorities compounded over time to produce these inequities.

Download Evidence Brief 4

Evidence Brief 5: How does housing impact health?

Overview

This evidence brief summarizes research on key factors to improving health through housing in populations with low incomes. It also highlights the key barriers that Black and Hispanic/Latino populations confront in improving health. Plus, it illustrates how the work of Habitat for Humanity contributes to positive health outcomes.

Download Evidence Brief 5

Evidence Brief 6: How does housing affect children’s education?

Overview

The location and condition of a child’s house plays a significant role in their physical, cognitive and emotional development and well-being, which impacts their education through improved attendance, better cognitive and behavioral health, and improved academic achievement. Making direct connections between housing and its impact on children’s education is challenging. However, studies have drawn a pathway between owning a decent, affordable and stable home and experiencing positive educational outcomes.

This evidence brief:

Summarizes research on critical factors for improving children’s educational outcomes by helping populations with low incomes obtain decent, affordable and stable housing.
Highlights the key barriers that Black and Hispanic/Latino populations face in improving children’s educational outcomes.
Demonstrates how Habitat for Humanity contributes to strengthening children’s educational outcomes.

Download Evidence Brief 6

Evidence Brief 7: How does homeownership contribute to social and civic engagement?

Overview

People with low incomes have generally been less civically engaged than the population at large. Because of this, they have less political and social influence and less ability to advocate for policies and issues affecting them. Homeownership motivates increased civic engagement regardless of income level, so increasing opportunities for homeownership among people with low incomes will increase their political and social involvement.

This evidence brief:

Summarizes research on housing-related factors that support social and civic engagement in populations with low incomes.
Highlights factors that affect social and civic engagement among Black and Hispanic/Latino populations.
Illustrates how the work of Habitat for Humanity contributes to social and civic engagement.

Download Evidence Brief 7

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OUR IMPACT

The Case for Habitat Homes

Donors

Why is Lakeshore Habitat for Humanity's work so important? Because homeownership transforms lives—and it is increasingly out of reach for many.

Learn more through a series of Evidence Briefs created by Habitat for Humanity International.

Evidence Brief 1: Who has access to homeownership?

Housing inventory does not meet demand

Home prices have been increasing rapidly

The cost of purchasing a home is out of reach for many households

Tight lending standards and strict credit standards prevent homeownership for many

Foreclosure rates are lower among borrowers with safe and more affordable mortgages

The homeownership rate of Black and Hispanic/Latinx households trails that of white households

Evidence Brief 2: What are the benefits of homeownership?

Wealth and financial stability

Educational achievement

Civic and social engagement

Physical and mental health

Reduced environmental footprint

Evidence Brief 3: How does Habitat homeownership contribute to wealth building?

For low-income households

For women

Civic and social engagement

Evidence Brief 4: How do racial inequities limit homeownership opportunities?

Overview

Evidence Brief 5: How does housing impact health?

Overview

Evidence Brief 6: How does housing affect children’s education?

Overview

Evidence Brief 7: How does homeownership contribute to social and civic engagement?

Overview

Get to Know Lakeshore Habitat

The Affordable Housing Crisis in Our Community