Realty Reaction

Homeownership has long been regarded as one of the key elements of the “American dream.” America has one of the highest proportions of homeownership in the world, with more than six out of every ten families living in owner-occupied housing.

The reasons for America’s love affair with homeownership are many. Some are financial. Our tax code continues to subsidize heavily the ownership of homes, making it more attractive than renting for most people. Homeownership is also America’s favorite forced-savings and investment plan, with an increasing share of the monthly mortgage payment going into the building of equity for future uses-another home, college expenses, retirement, etc. A home is, truly, the only investment you can live in, and over the past 40 years, it has been a generally well-performing investment, relative to alternative uses of money.

But much of the motivation behind homeownership is psychological. This country was founded on principles of individual destiny, personal control over one’s life and surroundings, and freedom of individual expression. A home of one’s own helps fulfill all of those promises, giving the owner freedom from rent hikes and the whim of the landlord, and the freedom to live life as he or she wishes. A home can provide a sense of security and pride. A home gives a feeling of stability and commitment, not to mention autonomy and privacy. It is often the first step in an owner’s putting down roots in a community.

But like most freedoms, the benefits of homeownership also carry heavy responsibilities-financial obligations and duties of maintenance, recordkeeping, and planning.