Journal Article Homeownership and the American Dream
Laurie Goodman, Christopher Mayer
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We take a detailed look at US homeownership from three different perspectives: 1) an international perspective, comparing US homeownership rates with those of other nations; 2) a demographic perspective, examining the correlation between changes in the US homeownership rate between 1985 and 2015 and factors like age, race/ethnicity, education, family status, and income; 3) and, a financial benefits perspective, which compares the internal rate of return to homeownership to other investments. Our overall conclusion: homeownership is a valuable institution. While two past policies may have put too much faith in the benefits of homeownership, the pendulum seems to have swung too far the other way, and many now may have too little faith in homeownership as part of the American Dream.

Research Areas Wealth and financial well-being Families Housing finance Housing
Tags Economic well-being Housing markets Homeownership Housing affordability Racial homeownership gap
Policy Centers Housing Finance Policy Center