Addressing Land Contracts through Research, Policy, and Practice: A Housing Symposium

On October 29, 2019, the Detroit Branch of the Federal Reserve Bank of Chicago held its housing symposium.

Land contracts have attracted the attention of a growing number of policymakers, housing practitioners, and advocates in recent years. In communities where mortgage credit is limited, homebuyers may turn to land contracts for financing. While these arrangements can help achieve homeownership in the absence of a standard mortgage, they carry important risks and few consumer protections, and have negatively impacted many vulnerable households.

This event highlighted the latest research, policy developments, and programs responding to the use of land contracts, with a focus on Detroit and Flint. The research included recent data on Detroit’s housing market, the places and people affected by land contract lending, and a historical analysis of predatory land contract lending to black homebuyers in Chicago. Policymakers discussed responses to protect consumers and to revitalize housing markets. Community development practitioners shared knowledge of effective programs to provide safe pathways to homeownership and to support individuals affected by contract lending.