Editorial The New York Times December 12, 2014

Homeownership has gotten a bad rap, said The New York Times.  ” Since the housing bust, renting has been in and owning a home has been out, especially among young adults who in earlier decades would have been first-time buyers.”  Today just 64.3 percent of Americans own homes – a 20-year low!  That’s a shame since homeownership long has been central to Americans’ ability to build wealth.

In 2013, the median net worth for homeowners was $195,400 compared with just $5,400 for renters.  Buying a home simply forces people to save – for both the initial down payment and monthly mortgage payments.  And while the housing bust proved how risky homeownership can be, the lesson of that debacle is not for individuals to avoid homeownership or for policymakers to devalue its importance.

A wiser path is to foster conditions that allow more middle and lower-income Americans to climb onto the housing ladder, including smarter regulations governing lenders, better consumer protections, and more robust wage growth.  Renting can make sense as a lifestyle choice or because of income constraints.  As a means to building wealth, however, there is no practical substitute for homeownership!

Share this:
Mark Danforth Lomas

Recent Posts

First Quarter 2025 Statistics

Santa Barbara's real estate market in early 2025 has shown resilience, but signs of softening…

2 weeks ago

How Tariffs Will Impact Real Estate

President Trump's new tariffs are expected to significantly affect the real estate market. Here's a…

2 weeks ago

Curious California Real Estate Factoids for 2025

 March 19, 2025: Home sales are down in California, and prices are rising, with a…

4 weeks ago

Southern Santa Barbara Real Estate March Overview

Southern Santa Barbara, stretching from Carpinteria to Gaviota, offers a unique blend of coastal charm…

4 weeks ago

“Live” Santa Barbara Real Estate Statistics

The southern Santa Barbara's real estate market offers a fascinating glimpse into the dynamic interplay…

1 month ago

Southern Santa Barbara Real Estate Insights

In 2024 the southern Santa Barbara real estate market saw a 16% increase in inventory.…

2 months ago