CLTs are one of many methods that can reduce the racial wealth gap by helping minority communities build wealth. CLTs allow low-income families traditionally overrepresented among minority communities to build generational wealth through home equity. By offering lower barriers to homeownership, including lower initial and overall costs, CLTs provide underserved communities with more opportunities to become homeowners and develop equity. Recent studies show that initial costs for the average shared equity homeowner are less than $2,000, substantially less than the 20% loan-to-value (LTV) requirement for traditional mortgages. But members exit with $14,000 in equity on average, noticeably increasing their household wealth.