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The Homeownership Society Was a Mistake
Article

The Homeownership Society Was a Mistake

Real estate should be treated as consumption, not investment.

Jerusalem Demsas
The Atlantic, 2022
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Home ownership is part of the American Dream, conveying notions of stability and success. Yet, for some, home-owning proves more of a nightmare. For the less well-to-do, a home may represent an outsized portion of their net worth and carry unsustainable burdens. Atlantic staff writer Jerusalem Demsas considers the issues surrounding home ownership and renting. She raises cogent arguments for policies that would make housing more affordable across the socioeconomic realm. Demsas notes that, for the good of society, perhaps housing should be a home rather than an investment.

Summary

lower-incomeHomeownership has long been seen as a cornerstone of financial stability in the United States.

Conventional wisdom says that owning a home provides a financial resource and security – security against unemployment or unexpected emergencies, and a resource to finance higher education or other major life events. The stereotype holds that only young people and those with dodgy finances rent. For many Americans, a home is their largest store of wealth.

But beneath this rosy notion of home ownership lurk uncomfortable realities. Ownership can be more a problem than a solution. Certain socioeconomic cohorts are more subject to the negative aspects of owning a home than others: the young, families with lower incomes and people of color. Homeownership does not always guarantee security, and it may even hamper the ability to make better housing available to society...

About the Author

Jerusalem Demsas is a staff writer at The Atlantic.

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