Home Ownership In Steep Decline

By Justin Gardner | Related entries in Economy, Money, Subprime

From 69.1% in 2005 to 67.8% this year, which is the biggest decline in two decades.

NY Times explains the human costs:

For many minority and lower-income families who viewed homeownership as a stepping stone to building wealth and passing it on to their children, the transition from owning to renting has been the unraveling of a dream. Burdened now by debt and bad credit, some of these families are worse off than they were before they bought. [...]

The new renters include people like Tina Williams, a 43-year-old medical assistant who lost her three-bedroom colonial in Cleveland to foreclosure in March after her adjustable rate mortgage spiked and she struggled to find work.

Ms. Williams slept at a homeless shelter and at the homes of friends after five apartment complexes rejected her, citing her bad credit and history of foreclosure. Finally, someone offered to rent her the third floor of their house. Her new $300-a-month rental has a bedroom, a living room and a bathroom, but no kitchen.

So much for the “ownership” society.


This entry was posted on Sunday, June 22nd, 2008 and is filed under Economy, Money, Subprime. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses to “Home Ownership In Steep Decline”

  1. Ben-David Says:

    The sky is falling – it must be so, it says it in the NY Times!

    It took 3 years for an indicator to budge 2 percent. Hoo-hah!

    And this is the “biggest” decline in 2 decades – well yeah, that figures – because housing prices have been rallying for about that long.

    Look back at the last boom market and you will find the same pattern – climbing prices, and those who overextended themselves lose their investment when the bubble bursts.

    But most people are not overextended. They continue to own their homes and accrue equity.

    The overall trend since WWII is for increased home ownership. This remains the case. The “record low” 67 percent barely dents the gains of the previous 20 year rally – this cycle of housing growth still ends with a HIGHER percentage of home owners compared to the same point in the previous cycle.

    And ALL these numbers confirm that a solid majority of Americans still own their homes.

    So yes, the ownership society is still alive and well.

    The sky is not falling – despite desparate attempts by the house-organ of the Democratic party to portray things otherwise.

  2. Bob Says:

    So much for “personal responsibility”. You think just maybe she overextended herself? No can’t be it has to be the evil mortgage lenders fault.

  3. gerryf Says:

    There is a difference between personal responsibility and predatory lending practices and fraud.

    We don’t know enough about this story to say how it went down, but we do know with certainty that some lenders were deceitful, that they were negligent in loaning to people they knew were bad risks (but let those people believe that they could afford these dodgy subprime loans), and that no one could have anticipated such poor governance from an administration that has wrecked the economy, weakened the dollar, borrowed like a gambler and ignored responsibility for its actions (where is your outrage at that?).

  4. Jon Dale Says:

    Bob and Ben-David sound like swell guys. Love thy neighbor dudes.

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