Is Home Ownership Overrated?

 

ImageShould home ownership be encouraged? The Economist wants you to join the debate!

The proponents of renting argue that home ownership should not be promoted since it slows the economy by tying the work force to one location. To encourage a fluid, adaptable economy, people must be able to pick-up and move to find jobs. Evidence from both Europe and the United States indicates countries with a more even balance between home ownership and renting have lower unemployment rates and better mental health and satisfaction among their citizens than countries with very high home ownership rates.

Proponents of homeownership argue that it promotes social stability and community involvement. People who own homes are more likely to maintain their common areas and seek to improve local schools. Children of homeowners are more likely to excel academically and graduate from high school.

While homeownership proponents acknowledge that homeowners are less mobile than renters, they argue that people already prone to stay in one place are influenced by this desire to purchase a home. Homeownership is a result of preexisting community roots, a sign of a chosen lifestyle rather than the catalyst for it.

first tuesday Insight

A combination of post-boom housing factors, including damaged credit and insufficient employment has made home ownership unfeasible for many would-be home buyers. For others, especially the younger Generation Y, the employment opportunities and local amenities of urban life have caused them to favor renting over home ownership.

The direction of California’s future housing market will impact the future of real estate practice. Will there be a shift in the client base from sellers and buyers to landlords and renters?

Agents: Let the scholars know what you’re seeing first-hand in California’s housing market by joining the debate online. The Economist is currently soliciting votes and comments. The debate closes September 26, 2012.

 

is lead editor for the Landlords, Tenants and Property Management and Real Estate Property Management books.

 

Copyright © 2012 by first tuesday Realty Publications, Inc. Readers are encouraged to reprint or distribute this information with credit given to the first tuesday Journal Online — P.O. Box 5707, Riverside, CA 92517.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s