The Role of Affordable Homeownership in Asset and Credit Building: Evidence from a National Evaluation of Habitat for Humanity Programs

Background and Purpose: Habitat for Humanity International (HFHI) has long supported low-income families by expanding access to affordable homeownership. In addition to its longstanding home construction efforts, Habitat for Humanity provides affordable housing financing with a zero-interest mortgage. While prior research has highlighted HFHI’s role in improving housing access and reducing poverty, less is known about its impact on long-term financial outcomes—particularly credit building and liquid asset accumulation. This study presents findings from the first nationwide evaluation of HFHI’s programs using longitudinal credit data from a large credit rating agency in the U.S. and forthcoming survey data. This project represents the first nationwide evaluation of Habitat for Humanity’s affordable housing programs and their impact on families’ wealth building.

Methods: The data comes from a major U.S. credit rating agency and includes longitudinal asset and credit information for Habitat families and their surrounding neighbors, covering over 200,000 individuals. To estimate the causal effects of HFHI homeownership, we employ the Callaway and Sant’Anna Difference-in-Differences (CSDID) approach, which accounts for variation in treatment timing and provides robust estimates of average treatment effects on the treated (ATT). Habitat homeowners are compared to demographically similar non-Habitat families living in both their original (pre-Habitat) and current (post-Habitat) neighborhoods.

Results: Drawing on credit score and liquid asset indicators from a national credit reporting agency, we find that Habitat homeowners experienced significantly greater financial gains than their peers. On average, they increased their credit scores by 25.9 to 34.2 points and accumulated $1,778 to $2,216 more in liquid assets. Black Habitat families experienced even stronger outcomes, with credit score improvements up to 32.2 points and liquid asset gains exceeding $4,900 compared to non-Habitat Black neighbors. These financial advantages persisted—and in many cases, grew—over time, especially after the first two years of homeownership. Relocation to new neighborhoods also appears to enhance financial outcomes, suggesting additional place-based benefits beyond the effects of homeownership alone.

Conclusions and Implications: By rigorously evaluating credit and asset trajectories among Habitat homeowners, this study contributes to the growing literature on housing as a foundation for financial resilience and economic mobility. The findings underscore the potential of affordable homeownership—and nonprofit-led housing interventions more broadly—to support measurable wealth-building outcomes, particularly for historically marginalized groups. These insights carry important implications for the design of equitable housing policies and nonprofit programs aimed at promoting financial inclusion and upward mobility.