Dive Brief:
- Rhode Island Gov. Gina Raimondo launched the new Ocean State Grad Grant program Monday to offer incentives for college graduates to buy homes in the state.
- The program provides down payment help worth 3.5% of a home's purchase price — with a limit of $7,000 — for eligible grads.
- The "quasi-state" Rhode Island Housing department will run the program, which the state has allocated $350,000.
Dive Insight:
Officials hope the Ocean State Grad Grant program will promote homeownership while also keeping college grads from leaving Rhode Island.
"Sparking a comeback for Rhode Island's economy is my top priority, and this program is a creative solution to one of the greatest challenges we face: making sure our children have access to opportunities for living and working in Rhode Island," Raimondo said.
Rhode Island's program isn't unique in the U.S., but it represents a growing effort to get millennials to finally make the long-awaited leap into homeownership.
A lack of affordable inventory on the market and rising home prices have kept first-time buyers away. Officials hope the help from this kind of state program might convince those reluctant younger buyers to commit to owning.
