Why homeownership will continue dropping

yep. not to mention peoples credit continually get ruined because they are living beyond their means. Sadly for most people "living beyond their means" now means a roof over your head and 3 meals a day. BUT WE HAVE THE BEST EVER ECONOMIC GROWTH THIS QUARTER LOLOLOL.

As early as 20 years ago you wouldnt really have seen any secured cards or credit building cards (cards that dont report to the credit bureaus till a set amount of time) on the market. Now they are all over the place.
 
tsuke said:
yep. not to mention peoples credit continually get ruined because they are living beyond their means. Sadly for most people "living beyond their means" now means a roof over your head and 3 meals a day. BUT WE HAVE THE BEST EVER ECONOMIC GROWTH THIS QUARTER LOLOLOL.

As early as 20 years ago you wouldnt really have seen any secured cards or credit building cards (cards that dont report to the credit bureaus till a set amount of time) on the market. Now they are all over the place.
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Should the federal gov't set a targeted home ownership rate for the country?
 
cawacko said:
Should the federal gov't set a targeted home ownership rate for the country?
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?does it matter? They can set 50% for all I care. As long as people dont get better paying jobs (and actual jobs at all for the out of labor market) were not going anywhere.
 
cawacko said:
Should the federal gov't set a targeted home ownership rate for the country?
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Depends what you mean? The devil is in the details there. I think that from standpoint of personal prosperity home owner ship is a very important step and often a persons first major financial investment. Not to mention you gotta have a place to live. In terms of promoting overall prosperity I think having government favor policies that promote home ownership. It's pretty much a win/win situation. Having said that, and as I said before, the devil is in the details.
 
tsuke said:
?does it matter? They can set 50% for all I care. As long as people dont get better paying jobs (and actual jobs at all for the out of labor market) were not going anywhere.
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You clearly don't understand what the gov't has done to get home ownership this high to begin with.
 
Mott the Hoople said:
Depends what you mean? The devil is in the details there. I think that from standpoint of personal prosperity home owner ship is a very important step and often a persons first major financial investment. Not to mention you gotta have a place to live. In terms of promoting overall prosperity I think having government favor policies that promote home ownership. It's pretty much a win/win situation. Having said that, and as I said before, the devil is in the details.
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A half century ago a guy could get a job with a firm, work his 30 to 35 years, retire with a pension etc. He could buy a home, live in it for those 30 to 35 years and by the time he retired own it free and clear. Things are clearly different today.

Yes people need a roof over their head but owning or renting doesn't change that. The average home owner moves every five years. That means if you took out a 30 year mortgage you have basically paid off no principle by the time you move, therefore no equity accumulation. If housing were about building wealth we wouldn't have interest only loans for instance.

Yes, there are definite advantages to home ownership. But policies set forth by the gov't also distort the residential market to the point of limiting mobility of people and hurting overall economic growth
 
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