. . . but WE’RE ALL GOING TO DIE!!!!!!!!
Okay, maybe I’m reacting a little too harshly to this silly article by the Associated Press: Everything seemingly is spinning out of control.
Yep - times are tough. There’s flooding in the midwest, health care is expensive, gas prices are too high, home values are dropping, California is burning, wars in Iraq and Afghanistan are still being fought, terrorism is still a threat, air fares are rising, the earth is melting, etc., etc., etc. Oh yeah, and George Carlin is no longer around to put it all in perspective.
Because there is economic uncertainty, which has triggered other anxieties, stories like this are predictable. Also predictable are policy prescriptions promising to “solve” our problems as well as calls to depart from our normal way of living. Shelve the car - take mass transit!
After surveying the grim future, the AP authors conclude: “maybe this is what the 21st century will be about - a great unraveling of some things long taken for granted.”
Is homeownership one of those things set to unravel?
Probably not, but liberal New York Times columnist Paul Krugman calls into question the very value of homeownership. In his recent op-ed - “Home Not-So-Sweet Home” - Krugman asks: “Why should ever-increasing homeownership be a policy goal? How many people should own homes, anyway?”
Among the disadvantages, he says, there is…
a) increased financial risk as evidenced in the mortgage crisis
b) getting tied down to a specific place, which makes it difficult to ”follow the money,” i.e., jobs
c) the cost of commuting, which is getting prohibitively expensive
I can accept these as legitimate concerns, and Krugman - as a trained economist - is right to identify the costs of something and not just the benefits. (Policymakers - take note!)
But do these costs really outweigh the benefits of homeownership? I would answer ‘no,’ and I’m sure most Americans would agree. The benefits of homeownership have been enumerated many times, so I won’t restate them here. Instead, I’ll ask a history-oriented question: Were we better off when we were a nation of renters?
In pre-WWII America, most people did not own their own homes. There was tremendous economic instability, which created boom-and-bust cycles in the national economy and financial anxiety and high rates of poverty at the individual level. Homeownership has been a major reason for the unprecedented growth in the United States since WWII.
And the opportunity to own a home has been one of the main reasons immigrants from every corner of the planet desire to come to the United States. We call it the American Dream!
I think most reasonable people would agree that homeownership is not for everyone, and our country allows people to choose if they want to rent or own. Some people define the American Dream differently, and here at the ADC we think that is A-Okay!
Still, in terms of national aspirations a nation of homeowners is far more compelling than a nation of renters. We’ll endure these uncertain times and - by fastening to our principles and not abandoning them - we’ll make it through just fine and leave something better for the next generation.