Shared Equity

Sharing of housing equity in one form or another between primary home-buyer and a lender or coinvestor is an increasingly prevalent method of financing homes in the United States, the United Kingdom, and various other countries. In this article, the definition, rationale, and history of such financing are traced. The closing section addresses the ever-growing interest in this form of finance across the globe, and where this might head. While still only representing a very small market segment, there is every sign that one day this market segment will exist on a large scale in both private and public sectors. These markets are important both as a matter of better matching the needs of home-buyers and investors and as a means of furthering public policy objectives.