3 Solutions - U.S. Home Ownership

#1 - TAXES. Have “One Tax Code for Homes” for all single-family homes and condos – Eliminate all landlords-only tax breaks. Easy partial solution.

More generally, get rid of ALL possible government incentives (taxes, mortgage programs, laws, policies, etc.) to own single-family homes and condos that aren’t incentives for people to own those homes as their primary residences.

#2 - MORTGAGES. Redesign U.S. mortgages to maximize home ownership over the long term instead of maximizing home sales over the short term. Complex partial solution.

#3 - HOMES. Greatly expand non-profit, limited-profit, cooperative and government-owned social housing development. Long-term partial solution.

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House prices will always be prone to booms and busts because demand will always be able to increase and decrease a lot faster than supply. The number of houses increases incredibly slowly, more slowly than the supply of gold. And unlike gold, homes are completely immobile so they can’t be moved to where demand is greatest so local housing supply increases much more slowly than the supply of gold.  

We can, however, greatly reduce the size of home price booms and busts, and that would stabilize and increase home ownership and the wealth of Americans in the future. We need to think long-term.

Currently, the United States has a below average home ownership rate. See Secret #1.

Goal. Protect your house from falling prices AND help young people become homeowners at the same time. 

Ensure your house is worth more next year, and in 5 years than it is now. To prevent house prices from falling, we have to prevent house prices from increasing more than is sustainable.

More stable, sustainable house price increases are better for the people who live in their homes and for the entire national economy.

In some places home prices are so high some people are worried that home ownership is becoming hereditary. We can make home ownership customary, not hereditary.

It’s our choice whether we do or we don’t take action to stabilize house prices – which would increase home ownership, reduce household debt, increase household wealth and national economic growth. 

If we don’t, that’s our choice. The point is, we can change it, if we want to.