CHARLOTTE, N.C. — For those looking to buy a home in the United States, there is a 1 in 10 chance it could cost you over a million dollars, according to data from Redfin. As home prices continue to rise, the cost can put homeownership out of reach for some families - especially families of lower income.
The city of Charlotte and some nonprofits hope to make homeownership more accessible through various programs, including expanding the availability of affordable housing.
Shawn Health, the director of housing and neighborhood services in Charlotte, said the Housing Trust Fund is the primary vehicle supporting developers building affordable housing.
“In the last few cycles, voters have overwhelmingly endorsed a $50 million housing bond," Heath said. "We then have that money available to support the housing trust fund for a two-year period."
Through the fund, the city has supported the planned development or preservation of over 6,500 units of affordable housing. They have also invested over $150 million, including the production of 66 units dedicated to homeownership.
The city offers a down payment assistance program through House Charlotte, which is administered by DreamKey Partners.
New homebuyers, with incomes up to 110% of the area median income, can get up to $30,000 toward a down payment. This would be eligible on properties upwards of $315,000 for new construction.
During this last fiscal year, House Charlotte provided assistance to 114 households. Twenty-seven of those were through House Charlotte Plus, a new pilot program that provided up to $80,000 within the city's corridors of opportunity. House Charlotte Plus first launched in Feb. 2023 and funding was fully allocated in three months due to high demand.
“In this market, that [down payment] can be a significant hurdle for folks that are looking to buy a home,” Heath said.
Julia Porter, the president of Dreamkey Partners, said stable housing is a key factor for improving the well-being of families and communities.
“If the roof over your head is unstable, meaning you can’t afford it or you are paying more than 50% of your income to housing, then you are not thinking of much else,” she said.
They are working to level out the playing field through their own real estate developments.
“What’s happening in Charlotte, and what has been happening for a long time, is investors were buying up all of the inventory,” Porter explained. “So we thought: We’ll just start buying from the investors and put those homes back into homeownership.”
The nonprofit is developing homes for first-time homebuyers who make less than 80% of the median area income (AMI). For a family of four, that would mean $79,750.
DreamKey recently purchased 30 new homes for its portfolio. Prices at the Aveline Havens homes are currently between $285,000 and $300.000 for qualifying homeowners.
To buy a home through DreamKey, you must complete homeownership and financial literacy education courses.
“Working with your counselor, you definitely learn how to budget and you also learn the keys to maintaining good credit,” Ronisha Wood, a new homeowner, said. "Savings too. They are really big on savings."
Wood now has a three-bedroom home for her two daughters. She was able to buy the home with the assistance program.
“Me owning a home means having a piece of this American dream,” Wood shared. “It was in the east side of Charlotte, which is important to me because I wanted to stay close to work and I didn't want my kids to have to switch schools.”
Porter said the program's goal is to also combat displacement.
“If we want to keep people who work here, living here, then we have to be creative and more aggressive about maintaining and creating affordable housing,” Porter explained.
Homeownership is an investment that benefits families for years to come.
“That generational wealth has helped so many," Wood said. "I would like it to be helpful to my family as well."
Porter said there are programs to help people of many different income levels. It's about finding the one that meets your housing needs, she explained.
Contact Jesse Pierre at jpierrepet@wcnc.com or follow her on Facebook, Twitter and Instagram.
This story is part of ‘I Can’t Afford to Live Here,’ a collaborative reporting project focused on solutions to the affordable housing crisis in Charlotte. WCNC Charlotte is committed to reporting on the issues facing the communities we serve, including affordability. We tell the stories of people working to solve persistent social problems. We examine how problems can be solved or addressed to improve the quality of life and make a positive difference.