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While some studies have attempted to prove the existence of positive benefits associated with homeownership, the so-called “homeownership effect,” few studies have been able to isolate the impact of homeownership on low-income families from neighborhood effects. In a pilot study using survey data collected from applicants to the U.S.-based housing charity Habitat for Humanity, I employ a quasi-experimental design to compare changes in the lives of those who were selected into the Habitat for Humanity housing program to those who applied for housing but were denied. In addition, since the recipients of Habitat houses remain in the same general area as their original residence, this provides a unique opportunity for the comparison of treatment and control groups to examine the impact of homeownership apart from neighborhood effects. I find that, in comparison to denied applicants, Habitat homeowners report more positive changes in their overall life, economic situation, and their level of community involvement, but less evidence of reported improvements in their children’s educational outcomes.

The Effect of Homeownership on Low-Income Families: A Pilot Study with Habitat for Humanity