Unlocking Economic Opportunity through Land and Housing
Summary
In 2024, New Story committed to increasing access to land and affordable housing for 15,000 low-income families (60,000 people, 60% of whom will be women and girls) in ten states across Mexico. New Story will use impact investment to purchase well-situated land from municipal governments and private landowners and develop it into individual lots including essential services. At the same time, they will qualify families excluded from traditional markets by putting them on an income-based savings plan for two years to purchase land lots. By the time families have secured their land titles, the value of their lots will have approximately doubled in value and can be used as collateral for home construction loans. Through this first-of-its-kind approach that moves low-income families from beneficiaries to customers in the land and housing markets, this commitment demonstrates the market-based impact of land as a pathway to housing, a key tool to advance poverty reduction and elimination of gender disparities.
Approach
New Story commits to unlocking land and home ownership for 15,000 vulnerable, low-income families in Mexico (60,000 people, with 60% of participants being women & girls) between 2024-2027.
New Story’s ecosystem-building approach targets the bottom of the pyramid, moving low-income families away from unbanked beneficiaries with insecure land tenure to traditional market actors (customers) with a clear path to secure homes and asset accumulation. First, they work with municipal governments to identify well-located land near transportation and cities. They raise impact investment to purchase land from governments and private landowners that they then develop into individual lots that include essential services (water, sewage, and electricity) with private land developer partners. New Story then partners with financial institutions, readying them to offer home financing to participating families who, after two years, are now qualified for home financing because their land has increased in value two times and serves as their collateral.
Second, New Story qualifies families left out of the traditional market. These families lack adequate housing, have no relationship with a formal bank, and don’t own land. New Story puts families on a savings payment plan that works for their income. Families use a layaway model, making $~150 USD monthly payments for two years toward their land lot. When families pay off their lot and get their legal titles to become landowners, their land has approximately doubled in value because of the installed infrastructure. They can then use their appreciated land as collateral to access their first housing loan and build their homes
Action Plan
New Story (NS) is expanding its land development program across Mexico, targeting 15,000 new families in ten states. Each state will undergo geographic assessments and municipality due diligence to ensure maximum positive impact and future community demand.
Each program will be implemented separately with three key components:
Component 1 – Supply Developed Land (Year 1; Quarters 1-2) : NS will secure agreements with local governments and partners to acquire land lots in targeted municipalities. Simultaneously, NS will collaborate with financial institutions to facilitate access for low-income families, launching an open call for applications. Families meeting the criteria will be selected, with others on a waitlist to ensure 100% payments. Deliverables include land acquisition titles, partnership agreements, participant databases, and infrastructure plans.
Component 2 – Unlock Financing (Year 1; Quarter 3 – Year 3; Quarter 4) : NS will provide essential debt capital via bridge loans to develop infrastructure like roads, water, sanitation, and electricity on acquired land. Families will begin paying for their lots while receiving financial education from financial institution partners. NS will maintain payment records to enhance families’ credit profiles. At final payment, families will receive legal land titles and technical assistance to leverage them for financial products like housing loans or mortgages. Deliverables include financial reports, literacy training outcomes, and families accessing home construction loans.
Component 3 – Innovative Home Products & Community Engagement (Year 2; Quarter 4 – Year 3; Quarter 4) : NS will partner with local banks to broaden family loan options and offer technical support for mortgage applications. Concurrently, NS will design green spaces such as parks and sports fields, integrating them into community planning. Ongoing technical assistance will support families in safe home construction. Deliverables include community planning documentation, infrastructure development progress, and engagement reports.
Background
When people don’t have access to or control over land, it creates unfair social structures, inequality, and high levels of poverty (Oxfam, 2016) . Lack of land tenure prevents wealth accumulation, persistently marginalizing low-income families and significantly impacting employment, education, and health outcomes (Dachaga, 2022) . Without land tenure, low-income families are more likely to face persistent poverty, health disparities, social inequality, and limited economic growth (Mooya, 2008) . For women, it’s even harder to own land because of existing gender inequalities, discrimination, and undermining of women’s rights to land.
In many parts of Latin America, land tenure systems are informal or unclear, which poses a significant barrier to accessing formal financing (Prindex, 2020) . Banks are reluctant to lend to individuals or communities without clear and legally recognized land titles, fearing the risk of default or disputes over ownership (CGAP, 2024) . Many rural and marginalized populations in Latin America lack access to formal financial institutions, such as banks, limiting their ability to secure loans or credit for land purchases due to stringent requirements, high interest rates, and collateral demands often beyond their means (Belmont, 2021) .
Increasing access to land and affordable housing is critical to poverty reduction and eliminating gender disparities. Financial inclusion is essential to connecting families to more affordable land and housing options. Without access to financing, land and affordable housing are out of reach for low-income families, locking them out of the market and perpetuating the cycle of poverty.
New Story’s sustainable model allows low-income families to buy affordable land, secure legal land titles, and build themselves out of poverty and into homes while creating generational wealth for the first time. Their program is more cost-effective, using local actors to facilitate market systems change to work for low-income families, especially women, and has the potential to scale globally.
Progress Update
Partnership Opportunities
New Story is actively seeking critical resources and services to complete and scale their commitment:
Raise $25 million in impact investment: They seek partners interested in impact investment to fund land acquisition and development, expanding capacity to provide land for low-income families.
Raise $15 million in philanthropic capital: Foundations, corporations, and individuals can contribute to support their land and housing development initiatives, ensuring more families have access to developed land.
Land Development Partners: With support from CGI, identify new land development experts and partners in Mexico and leverage their knowledge to enhance NS’s operations.
Architects and housing experts: NS invites architects and housing experts to join them in improving their program. Their insights will strengthen NS’ design capabilities and support families more effectively throughout the home-building process.
Through these partnerships and resources, New Story will significantly expand its impact, increasing access to land, providing sustainable housing solutions, and fostering community development for low-income families., NS adds the missing piece to make this commitment successful – financing and technical assistance to families. They are raising $25 million in investment to purchase and develop land for low-income families, then partner with local land developers and financial institutions to see low-income families as the untapped market with enormous potential.
They are dedicating $15 million in philanthropic capital to partner with financial institutions, delivering financial literacy training to empower families with crucial financial skills and knowledge of available financial products. Moreover, through their technical assistance for construction, they collaborate with local organizations to ensure families can safely and efficiently build homes.
By combining financial resources, educational programs, and hands-on technical support, New Story is not only filling a crucial gap in the land and housing market but also fostering sustainable community development. Through strategic partnerships, their commitment will create lasting impact by empowering families and strengthening local economies.