I recall Bill Clinton crowing about how home ownership had increased during his administration, especially among poorer people. Everyone applauded.
The trouble is that owning a home isn’t any more a good idea for everyone than going to college is. Today’s WSJ features an excellent column by Holman Jenkins making that point.
Jenkins cites research showing that among low-income people who became home owners between 1977 and 1993, 36% went back to renting within two years; 53% within five years. What about the mortgage interest deduction, which is the great federal boost to owning as opposed to renting? The deduction “won’t turn a house into a paying proposition for those with little income to shelter.”
Just as politicians tried to make hay on the good news in the past, they’re trying to make hay on the bad news today. Jenkins notes that the Democratic candidates are frantic to proclaim how much they want to help the poor people who have or may lose their homes because they improvidently took out mortgages to buy. “What might really benefit these citizens,” he writes, “is being freed to return to renting, where some real bargains will likely be had in the months and years ahead.”
Will any politician who aspires to national office have the guts to say that owning a home just doesn’t make sense for everyone?
