MIA from US housing policy. Shutterstock
“President Barack Obama, in his annual address to the country last week, stressed the importance of keeping “the dream of homeownership alive for future generations of Americans.” One of the main ways he plans to do that involves lowering mortgage premiums.
“Renters, who make up about 35% of American households, as usual were left out in the cold.
“Although the speech stressed the importance of ‘helping folks’ afford a home, Obama never mentioned the importance of helping them find an affordable one, regardless of whether it’s rented or owned. Simply put, renters are largely invisible in federal housing initiatives.
“Instead, middle-class families were encouraged to plunge further into debt to chase the dream of homeownership. So much for ‘middle-class economics.’
“Still waiting to recover
“It has been more than 30 years since a president mentioned the need to increase affordable housing in a State of the Union address. In 1981, just days before he left office, Jimmy Carter argued that more money needed to be spent on rental vouchers and public housing. Since then, presidents have extolled the benefits of homeownership but have been unwilling to acknowledge why so many middle-class renters are unwilling or unable to buy houses.
“While wealthy American households can buy homes because most have recovered from the financial crisis, most households are still waiting to bounce back.”
Read this article at The Conversation in its entirety, click here.
