This 2007 report by Robert Charles Lesser and Company provides quantitative estimates of the total consumer demand for shared equity homeownership in the 20 largest US metropolitan areas based on a survey of 1,100 low or moderate income renters with an interest in purchasing a home.

Among the report’s findings:

• Over the next five years, demand for permanently affordable shared equity housing emanating from the 20 largest MSAs alone could total approximately 297,455 units.
• On average, 14.8% of the target market audience for shared equity housing would be strongly inclined to purchase a home using shared equity.
• When faced with the financial implications of a hypothetical shared equity purchase—including down payments, sales price and cash-out when the homeowner sold, purchase price, and monthly payments—a large majority of respondents indicated a willingness to trade away equity in exchange for more favorable purchase terms.
• When offered a variety of differing financial implications for a home purchase, including down payments, monthly payments, and equity cash-out at time of sale, only approximately 20% of respondents ultimately preferred the scenario without shared equity.
• The survey revealed that the “education gap” with regard to shared equity housing is a significant barrier to its acceptance, and that bridging this education gap could have a significant impact on acceptance and demand for shared equity housing.
• After receiving a tutorial on the concept and potential workings of shared equity housing, 70.8% of those surveyed were somewhat (56%) or very (14.8%) interested in purchasing a home under a shared equity scenario, as compared with only 3.5% before the tutorial

Download: Measuring the Market for Shared Equity