Paths to stability and wealth
A mixed-methods evaluation on the financial stability and wealth building of Habitat homeowners
“I couldn’t have done it without Habitat. This home wouldn’t be here. I wouldn’t be sitting here without Habitat.”
A home isn’t just a roof; it’s a foundation for stability, opportunity, and a stronger future. For low-income families, owning a home is often the first real chance to build something lasting. But getting there is hard. Families face broken credit systems, unfair lending and skyrocketing repair costs. Simply handing over the keys isn’t enough to overcome these barriers.
A new research report, conducted in partnership with Washington University in St. Louis and Habitat for Humanity’s U.S. Research and Learning team, shows how Habitat for Humanity’s affordable homeownership model goes further with helping homeowners. Through its various programs, Habitat provides tools for people to move from basic stability to long-term security, financial confidence and wealth that can be passed on to future generations.
Key Findings
1. Even when Habitat homeowners miss a mortgage payment, they are 56% less likely to lose their homes to foreclosure than similar non-Habitat homeowners. When affiliates originate mortgages in-house, this risk is lowered even further.
2. On average, Habitat homeowners’ credit scores increase by 22 points relative to their neighbors. Credit improvements begin before purchasing, driven by Habitat’s pre-purchase education and counseling. Gains then compound with tenure and peak in the eighth year of homeownership when credit scores increase by 43 points.
3. On average, Habitat homeowners accumulate $1,800 more in liquid assets (e.g., savings) than comparable neighbors. Growth builds over time and reaches $4,400 more by the sixth year of homeownership. These gains are especially pronounced for Black homeowners who accumulate $3,100 more in liquid assets on average and nearly $8,000 more by the sixth year of homeownership relative to Black non-Habitat homeowners.
4. Habitat’s zero- and low-interest mortgage models enable rapid, compounding housing equity growth from day one, often reaching 2.6 times the purchase value over a 30-year period. Features like forgivable loans and shared appreciation mortgages also increase early returns and maintain long-term wealth outcomes.
5. Homeowners describe a boundary between achieving stability and building wealth, but with ongoing support from affiliates, homeowners gain financial confidence, actively save and build wealth.
6. Habitat homeowners report significantly higher levels of satisfaction with their home, satisfaction with their life and optimism about their future than their comparable non-Habitat households.
7. From the Habitat homeowner’s perspective, the goal of building wealth is intergenerational — having the opportunity to leave something behind for their children and break cycles of instability.
The findings are clear:
Habitat’s model consistently supports long-term wealth building for homeowners and their families. By pairing affordable mortgages with targeted financial support, Habitat fosters the stability homeowners need to save, build wealth, and leave a foundation for the next generation.
These quotes from Habitat homeowners summarize it best:
“[It] gives me great peace of mind, that we have this home. We’re able to afford it.”
“Every time I make a mortgage payment, we’re one step closer to having a place nobody can take from us. And… that’s a form of wealth you can’t count.”
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Learn more about the types of work we do to build a world where everyone has a decent place to live.
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Habitat for Humanity’s vision is a world where everyone has a decent place to live, but a structure of intentional and systemic racial discrimination in the U.S. has created barriers to homeownership for many Black families.
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Habitat’s vision is a world where everyone has a decent place to live. Habitat is committed to removing barriers to affordable homeownership for the most vulnerable communities in more than 70 countries around the world.