Home Ownership Matters!

This is the 2011 slogan for the National Association of Realtors in a nationwide campaign aimed at reconnecting Americans to the truth about the value of home ownership and the American Dream. I've been reading a few articles and blogs on the topic and here's what I have to say about why home ownership matters.



At a time where policymakers and those in Congress are targeting the Mortgage Interest Deduction for the chopping block, it's important to evaluate why home ownership matters to us, our communities, and our country. To individuals, owning a home fosters feelings of control over your life and puts you on the path to financial stability. Owning a home is one of the best ways to build long term wealth. It's not a typical investment; each monthly payment is like making a deposit into a savings account. It also you to stabilize your housing costs. You're able to more effectively manage your monthly expenses because a fixed rate mortgage won't increase in the same way that a landlord can easily raise rent. In the absence of other popular tax incentives which have lured buyers into the market, the mortgage interest and property tax deduction remains a huge incentive to own a home.



Home ownership matters greatly to our communities because home owners who are rooted in their neighborhood are more likely to volunteer, report crime, and maintain the general upkeep of their property as well as community property. Another benefit of ownership is neighborhood stability. When families move less frequently their children's lives are more stable at home and in school. They are more likely to become involved in organized activities and have greater scholastic achievement. Home ownership strengthens our communities, in ways that cannot be exactly measured, but with long lasting benefits which are overwhelmingly evident to homeowners living in owner-occupied neighborhoods.



Lastly, home ownership matters to America. In the widespread cynicism about our economy, our government's involvement in the private sector, and our anger about Wall Street excess one thing has not changed. We, as a nation, still view the promise of the American Dream and understand that owning a home is a part of reaching this achievement. 67% of American households are owner occupied and we pay 80-90% of individual income tax. In addition, we're also paying property taxes which support our local governments. Don't we deserve the small break that the Mortgage Interest Deduction affords us? If the MID is taken away, think of how much this will actually impact the economy and our road to recovery. Each home purchase pumps approximately $60,000 into the economy via furniture purchases, home improvements, and other related items. Think of all the local business that is generated from one home sale--the inspections required, the repairs that get made before and after the sale. If the housing market is forced into another downturn, what will be the lasting repercussions?



Homeowners are a vital asset to our country. At a time where the need for re-vitalizing our neighborhoods and increasing community involvement could not possibly be greater, we need to stand together to defend home ownership and its value to shaping our great nation. Owning a home has been and continues to be a huge step in achieving our vision of the American Dream.

I welcome thoughts or questions on the topic. Why does home ownership matter to you?