12 Aug The New American Dream
Past government policies have always promoted home ownership. In fact, Herbert Hoover believed that owning a home in America could help combat the spell of Communism during the Red Scare. Owning a home has always been the American way of life or at the least the desirable way of life.
It seems that our financial turmoil and the still slumping housing market is drastically altering the American dream. According to government officials and real estate experts, renting is the logical answer for housing and economic recovery.
Not only is this considered the answer to our country’s real estate woes but it also seems to be the logical choice for Americans. Attitudes have changed over the past three years when it comes to owning a home and we are going to see a drastic increase in demand for rental properties. We have learned a valuable lesson in that not everyone needs to own a home. While some may consider this idea harsh, the truth is that the attitude of ownership for all is what got us in this mess in the first place.
It’s comforting to know that the market will eventually fix itself or at least it appears it will. Those homeowners who shouldn’t have owned in the first place are the ones who have more than likely been foreclosed on. This puts them into the rental market where they probably should have been to begin with.
I know this all sounds a little harsh but there is a lot of truth here. Everyone is entitled to own a home but that doesn’t mean everyone should unless it makes financial sense. There is a big difference in the two. When buyers take on mortgages that they can’t handle they’re hurting more than just themselves. The housing market crash has definitely taught us that. The good news is that these hard times have taught buyers, lenders, and government officials a valuable lesson in home ownership.
Prepare for the rise of the rental market.