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Rethinking The Federal Bias Toward Home-Ownership - Essay Example

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The writer of the article “Rethinking the Federal Bias Toward Home-Ownership” raises some fundamental points associated with homeownership and rental housing in the United States and gives a very comprehensive account on the Rental Housing in America…
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Rethinking The Federal Bias Toward Home-Ownership
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Rethinking The Federal Bias Toward Home-Ownership

Download file to see previous pages... People tend to over-leverage themselves in because of this subsidized borrowing. The most important aspect of rental housing in America is that rental units are not single family dwellings-they are all multi-family structures. As a result, renting out single-family dwellings becomes a problem for a lot of agencies. The author discusses rental housing policies amidst this backdrop. Policies which favor home-owning encourage people to move out from dense cities. They also encourage single-family buildings instead of multi-family buildings. Like-wise these policies discourage renting because most rented dwellings are multi-family structures. So these are two major ironies that shape the rental housing market. Some of these policies include interest deduction on home mortgages, local policies discouraging tall buildings –all of which are a direct threat to the rental market. Any pro-homeownership policy will end up rallying for single-family homes and discourage multi-family dwellings. As a result of the subsidized borrowing, people move out of big cities and locate themselves in the suburbs. The consequences of this on the economy and the environment are drastic. Not only does it put the economy on the back track it also destroys the environment. There is an urgent need to address the relative ease with which home-ownership is rising in America today. It is important to revive the economy again and eliminate the subsidies offered for home-ownership especially the interest tax-deduction. (Edward.L.Gleaser) ...Download file to see next pagesRead More
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