The American dream of homeownership
I remember cringing every time I heard President Bush utter that phrase — “the American dream of homeownership.” It always rubbed me the wrong way. (Sorry, Mr. Bush, The American Dream stands for something much bigger than owning a home.)
So how has that all worked out for us? An op-ed in the New York Times seems to think not:
Owning a home lies at the heart of the American dream.” So declared President Bush in 2002, introducing his “Homeownership Challenge” — a set of policy initiatives that were supposed to sharply increase homeownership, especially for minority groups.
Oops. While homeownership rose as the housing bubble inflated, temporarily giving Mr. Bush something to boast about, it plunged — especially for African-Americans — when the bubble popped. Today, the percentage of American families owning their own homes is no higher than it was six years ago, and it’s a good bet that by the time Mr. Bush leaves the White House homeownership will be lower than it was when he moved in.
Now, as the real-estate market still hasn’t found its bottom, and foreclosures keep coming in, homeownership will be the domain of investors, and I argue that greater percentage of American families will rent, rather than own, when compared to the numbers before Bush decided to take credit for housing.
Tags: finance, housing, housing bubble