Huge number of programs offer support for first-time and repeat buyers
The number of national homebuyer assistance programs in the United States reached an all-time high in the second quarter of 2024, according to a report released by Down Payment Resource (DPR).
The Homeownership Program Index (HPI) report revealed that the total number of homebuyer assistance programs increased by 42 to reach 2,415, marking the highest count on record. This marked a 2% increase from the previous quarter and 213 more programs compared to Q2 2023.
DPR, the housing industry authority on homebuyer assistance program data, attributed much of this gain to local agencies pulling more heavily from federal funding to support homeownership initiatives.
“It’s very encouraging to see more state HFAs allocating American Rescue Plan Act (ARPA) and US Department of Health and Human Services (HHS) funds to support homeownership. We think this indicates that local municipalities are increasingly viewing affordable homeownership as a stabilizing force that fosters prosperity within communities,” DPR chief Rob Chrane said in a media release. “We are also particularly encouraged by the rise in programs targeting first-generation homebuyers to ensure more Americans can achieve the dream of homeownership.”
The ARPA, which authorized $350 billion in 2021 to help state, local, and tribal governments respond to and recover from the COVID-19 pandemic, has played a significant role in this growth. Currently, 24 programs are funded by ARPA, marking a 26% increase from the previous quarter and a 200% increase year-over-year. Governments must allocate these funds by the end of 2024 and spend them by Dec. 31, 2026.
Additionally, the number of programs funded by HHS increased by 19% quarterly and 121% annually to 31 programs. Studies have shown that stable housing positively impacts the health of individuals and families, which likely explains the growing support from HHS for affordable housing initiatives.
Read more: Is opportunity improving for first-time homebuyers?
The report also highlighted a rise in programs targeting first-generation homebuyers, with 21 programs in Q2 2024, up 133% from nine in Q1 2024. First-generation homebuyers often face financial challenges, such as a lack of assistance from their parents for down payments and other upfront home-buying costs.
“This is a recent trend we are seeing in the past year or so that started with a few pilot programs and is now being replicated by agencies throughout the country,” Chrane explained.
Despite the focus on first-time buyers, the report noted that 970 programs allow for repeat buyers, while 1,445 are restricted to first-time buyers.
“While the majority of programs are for first-time buyers, we’ve seen a steady uptick in the number of programs that allow for repeat buyers,” Chrane added, noting an 11% year-over-year increase.
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