Owning a house no longer part of the American dream?
By Patrice Hill
The Washington Times
9:48 p.m., Tuesday, February 15, 2011
As Congress and the White House debate how to patch up the housing market after four years of crisis, one clear lesson has emerged: Political leaders for the first time in decades no longer see the American dream of homeownership as the all-consuming goal it once was.
Against a backdrop of burgeoning foreclosures leading to blighted neighborhoods and rising homelessness, the administration’s blueprint for housing finance points out what may seem obvious but is difficult for most politicians to acknowledge: The debts and responsibilities associated with homeownership are not for everyone, and many families are better off renting.
That feature of the White House‘s plan for winding down mortgage giants Fannie Mae and Freddie Mac helped engender a surprisingly warm response from congressional Republicans, who are intent on minimizing the government’s role in housing, while it set off an unexpectedly sharp backlash from administration allies, such as liberal groups and advocates of lower-income Americans.
Housing and Urban Development Secretary Shaun Donovan called it “rebalancing” the government’s long-standing preference for homeownership and said that steering people with low incomes and poor credit toward rental housing where appropriate should be the emphasis.
The administration’s goal is no longer “for all Americans to become homeowners,” Mr. Donovan said, but rather to promote homeownership among those “who have the credit history and financial capacity” as well as desire to own a home.
Housing and Urban Development Secretary Shaun Donovan says the administration's goal no longer is Housing and Urban Development Secretary Shaun Donovan says the administration’s goal no longer is “for all Americans to become homeowners,” but rather to promote the American dream only for those who can afford it. (Associated Press)
That contrasts with efforts by Congress and presidents of both parties in past decades to promote homeownership seemingly at any cost. Congress has rarely hesitated to lavish subsidies and tax breaks on homeowners, starting with the extensive network of subsidies for mortgages provided by Fannie, Freddie and the Federal Housing Administration (FHA).
Trillions more dollars are spent subsidizing homeownership — but not renting — through the tax code’s mortgage interest deduction for first and second homes, real estate tax deductions, deductions for mortgage insurance and, most recently, tax credits for first-time homeownership.
Douglas M. Bibby, president of the National Multi Housing Council, applauded the administration‘s “return to a housing framework that understands that not every American wants to or should own a house.”
Originally Posted by Arroyo_Doble
