The second quarter saw the addition of 42 new homebuyer assistance programs nationwide, bringing the count of total programs to 2,415, the highest on record.
According to the newest data from Down Payment Resource (DPR), that equates to an uptick of 2% from the previous quarter. On an annual basis, there were 213 more programs than there were in the same three-month period one year prior, a 9.6% jump.
Additionally, 29 more providers stepped up to offer homebuyer assistance programs in Q2 than there were in Q1.
DPR noted that much of the increase can be attributed to local agencies apportioning more federal funding to foster homebuyer assistance.
“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,” said Rob Chrane, founder and CEO of DPR. “We think this indicates that local municipalities are increasingly viewing affordable homeownership as a stabilizing force that fosters prosperity within communities.”
ARPA-funded homebuyer programs, in particular, are on the upswing because the money is soon set to dry up. ARPA allocated $350 billion in 2021 as a recovery fund related to the COVID-19 pandemic; state, local and tribal governments must return ARPA funds if they aren’t apportioned by Dec. 31 of this year and spent by Dec. 31, 2026. In the second quarter, 24 programs were backed by ARPA funds, up 26% from the first quarter and 200% from the second quarter of 2023.
HHS-backed programs, meanwhile, were up 19% quarter over quarter and 121% year over year.
Chrane also noted that DPR is “particularly encouraged by the rise in programs targeting first-generation homebuyers to ensure more Americans can achieve the dream of homeownership.” There were 21 programs targeting first-generation buyers in the past year, up from just nine in the first quarter.
“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 said.
