Publication DateJuly 2005
Author(s)Michael A. Stegman, Roberto G. Quercia, Walter R. Davis
An early analysis of affordable home loans in a national pilot, the Community Advantage Program, between 1998 and 2002 appreciated on paper at a median annual rate that is less than the national house price appreciation index but higher than other types of investments, such as the Dow Jones Index and average rate on a 6-month CD.
In an early analysis of homes purchased in a national pilot called the Community Advantage Program (CAP), homes purchased between 1998 and 2002 are found to have appreciated on paper at a median annual rate of 5.4% between the time of purchase and spring 2003. This is less than the national house price appreciation index of 7.0% (covering 1998-2003) but higher than other types of investments such as the Dow Jones Index (2.78% annual growth rate over the same time period) and the average rate on a 6-month CD (4.34% over the same time period).
This impressive performance holds across different regions and states, with Community Advantage homes outperforming the 1998-2003 statewide averages in four of the 10 states with a substantial number of Community