We need policies that help stabilize tenancy and facilitate renters saving for retirement. Repost from OC Housing News 2011-2016 The US government treats renters like second-class citizens. Our current policies make it very difficult for renters to stabilize their housing costs or save for a comfortable retirement. Perhaps in an era where homeownership was attainable for everyone, such policies were tenable, but now with coastal states restricting new construction, significant portions of the population simply can't afford a home. Current government policies irreparably harm these renters. Politicians believe that high rates of homeownership foster social stability because people won't loot and riot if they feel invested in the community. Social engineering aside, there is one particularly strong financial reason politicians favor…[READ MORE]

The homeownership rate is plunging because the housing bust tarnished the American Dream dream, and a new generation chooses to rent instead. Repost from OC Housing News 2011-2016 For nearly 100 years, US government housing policy maximized the homeownership rate and the rate of growth in house prices. Politicians characterized homeownership as the best investment a middle-class family could make, and home ownership equated with the American Dream. During the early 00s, on the surface conditions looked great. House prices appreciated rapidly, mortgage equity withdrawal fueled an economic boom, subprime lending provided home ownership opportunities to everyone, and a record number of Americans realized the American Dream. Government officials touted the success of their policies, and critics of these policies…[READ MORE]

Lower house prices due to higher mortgage rates still result in a higher cost of home ownership. Repost from OC Housing News 2011-2016 Everyone shopping for a home wants to see lower prices. For most products, paying less for it means the buyer keeps more money to purchase other goods and services, but with houses, this isn’t necessarily the case. Most people borrow a great deal of money to buy a house, often 80% to 96.5% of the purchase price. In fact, the cost of borrowing money is largely what determines how much someone can borrow and bid to buy a house. (See: Your neighbor’s debt creates your home equity) When mortgage rates go up, the cost of borrowing increases,…[READ MORE]

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