Opendoor’s shared-equity test shows a new way to hunt for buyer demand

Opendoor is testing a shared-equity program in North Carolina, positioning the product as a low-down-payment path to owning a home. The company partnered with Ownify, a fractional homeownership and co-investment platform founded in 2022. Industry observers view the initiative as a creative strategy to move inventory off the company’s balance sheet, but they also point to substantial capital needed to scale this model. The “Own” program offers qualified buyers a hybrid between renting and owning: 2% down, no traditional mortgage at move-in and a single fixed monthly payment for five years. Opendoor pitches Own as an avenue to “move in as an owner” with far less cash upfront than the standard 10% to 20% down payment required by conventional lenders. “It’s basically a rent-to-own model with some skin in the game for the buyer, similar to a land contract,” said Coby Hakalir, managing director at Stratmor Group. “I like the idea, but there are some unanswered questions.” The structure raises questions for consumers and capital markets alike, including what happens to monthly payments in year six, the pace of monthly equity accumulation and how much equity a typical buyer actually retain...