Quote:
Originally Posted by Investing In Chicago
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".
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The barrier to moving and high transaction costs can cause huge inefficiencies, especially in high-demand locations. A family with children does not need the same size home at all stages of life, for example. Additionally many people don't stay at the same job for 20+ years which can lead to non-ideal commuting arrangements. Plus, as population growth slows, I bet average housing returns will go way down.