Time Magazine drives a stake into the American Dream
Waking up America? The Case Against Homeowning
THE SUBURBAN BEAST IS BEING STALKED.
In its Sept. 27th issue, Time Magazine makes the case against Homeownership. It is about time - haha.
"Homeownership has let Americans down. For generations people believed that owning a home was an axiomatic good. Political leaders hammered home the point." Then, they mention the views of Presidents Hoover, FDR, the Bush adminsitration, and finish, claiming: "A house with a front lawn, and a picket fence wasn't just a nice place to live or a risk-free investment; it was the way to transform a nation... No wonder leaders of all political stripes wanted to spend more than $100 billion a year on subsidies and tax breaks to encourage people to buy."
The article shows a chart, entitled "Hitting the Ceiling"
"Homeownership wasn't always the norm. It rose steadily in the postwar era - until the crash." From 46.5% of homes being occupied by owner-occupiers in 1900, it moved sideways to down through the Great Depression, and then started shooting during and up after WW II. The peak came about 2005, at the peak of the Housing bubble, when it hit a record 69.2%. The excesses of credit, enthusiasm, and malinvestment that were required to get it there are going to take many years to unwind.