The idea of home ownership as "The American Dream" has been packaged and promoted by the government for as long as I can remember.
In a major shift away from this thinking, the current administration has just announced plans to inject $4.25 billion of economic stimulus money into subsidized rental units throughout the country.
Some are viewing this as a rejection of the government's previous emphasis on home ownership as a way to create wealth and provide upward mobility. Perhaps, it is simply a recognition that not everyone can afford to purchase a home.
In light of what has happened to our banking system along with the record-breaking foreclosure rate, this may be just a dose of reality. Whatever the message is, I don't think we should begin to minimize the benefits of home ownership against the tenuous nature of renting.
As a renter, you live under the threat of being put out of your home at any time due to rent increases or a change in the landlord's situation. While this may be an acceptable risk to a single person, it's not the best situation for a family.
It is well-known that children of parents who own their own homes tend to do better in school and are more adjusted, and that neighborhoods with homeowners are more stable than those with rental units.
It's great that the much-neglected area of affordable housing will be getting this funding since so many people have been displaced and are on waiting lists. It will also put a lot of buildings that are currently vacant back to good use.
That having been said, the government should not abandon its long-standing policy of promoting home ownership since there were very sound reasons behind it. Among them: stability, safety, pride of ownership and a sense of community.
These reasons remain valid and the dream of home ownership is still very much alive.
Copyright 2009 - Claudette Millette, President, The Buyers Counsel - 800-392-1446
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