CityLab University: Shared-Equity Homeownership

It’s time again for CityLab University, a resource for understanding some of the most important concepts related to cities and urban policy. If you have constructive feedback or would like to see a similar explainer on other topics, drop us a line at editors@citylab.com.

To own or to rent: that is the question most Americans weigh when entering the housing market. But there is a third way. The shared-equity model includes community land trusts and co-ops, as well as below-market-rate programs tied to inclusionary zoning and resident-owned communities of manufactured homes. It’s an alternative form of ownership that provides benefits traditional markets cannot, such as long-term housing affordability and the ability for low and moderate-income families to build equity. In practice, however, co-ops and community land trusts face numerous organizational and financial challenges.