What is the asset building potential of shared equity homeownership?

Rick Jacobus of Burlington Associates has done a detailed analysis of the potential of well-structured shared equity homeownership programs to generate individual wealth in a variety of different markets.  His analysis shows that shared equity produces a sizable return on investment that exceeds most other investment opportunities for moderate-income families, even if it falls short of the extreme gains sometimes made during housing price booms.  At the same time, shared equity homeownership provides protection against the downside risk of home price declines.  For this reason, the risk-adjusted return of shared equity homeownership is comparable and may even surpass that of traditional homeownership.