Entry and exit affordability of shared equity homeownership: an international comparison

What is it about?

While many housing policy discussions around the world that support shared equity homeownership focus only on the improvement of "entry affordability", these discussions usually ignore the importance of "exit affordability". This paper aims to distinguish these two types of affordability of shared equity homeownership programs around the world, including Australia, Mainland China, Hong Kong, Norway, the United Kingdom, and the United States. One key finding is that while these programs can improve entry affordability, their ability to enhance exit affordability is weak when the subsidy is in the form of shared-equity, i.e. subsidised homeowners have to share their capital gain with the government. Thus, it is necessary to re-think the goals of the shared equity homeownership programs that have been implemented across the world.

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