Quote:
Originally Posted by eschaton
I think I'd disagree it's preferable for the vast majority of Americans. Only 64.2% of American households are homeowners, which is a majority, but not a vast one. If you add to this total people who own homes in areas where property values are either falling or appreciating at a rate that is less than the CPI, or those that cannot afford to move to a higher-cost area or a home that fits their needs better, it's assuredly significantly less than 50%.
Aside from high-net-worth individuals, policies incentivizing home-ownership work best for empty nesters and retirees, who either have either paid off their homes or pay very low mortgages from decades ago. But there's no particular reason why we as a society should provide incentives for these people to stay in their homes. Every empty nester staying in a four-bedroom house rather than downgrading to something smaller means one less family-sized home available for those who need it. Retired people of course often like to stay where they lived historically, but in utilitarian terms their taking up homes near job concentrations while workers have to commute from much further is bad policy. And the truly elderly should not age in place, as it often results in deferred maintenance (up to and including structural problems caused by things like roofs not being repaired) which can destroy the value of homes.
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Whether somebody owns a home in whatever moment of time isn't relevant, and doesn't tell the entire story.
The fact is, Home Ownership is by far the #1 wealth creator for the vast majority of Americans. If people choose not to take advantage of the benefits home ownership provides, that is on them, not cause to revamp the entire system.
With that said, home ownership is not a get rich fast scheme, it typically means you need to ride out several peaks and valley's in the market, and stay the course. There are very few instances where a family holds on to a home they own for 20+ years and says "gee, I wish I didn't purchase and pay off that home".