Homeownership Contributes to Household Wealth
For most home owning households, the home is a primary source of wealth and financial security. And even though many homes have lost value in recent years, the nation’s home owners have more than $12 trillion in home equity and they still believe in homeownership.
Homeownership also serves to diversify a household’s total investment portfolio and can shield households from the risk of large increases in housing expenses.
Home owners often tap the equity in their homes to pay for education, to cover health expenses and to help fund retirement. They also use the equity to help pay for improvements that increase the value of their homes and make them safer and more resource-efficient.
In addition to homeownership opportunities, an adequate stock of rental housing is essential to a well-housed population. Many people aspire to homeownership, but owning a home is not a universal goal. Some people prefer to rent, and others are unwilling or unable to take on the financial responsibility of owning a home.
The bottom line is that both homeownership and rental housing should be readily available, and consumers should be able to choose the type of housing that best meets their needs, whether that means purchasing a home or renting an apartment, condo or single-family home.
Policies and regulatory actions should not create arbitrary and unreasonable barriers that effectively prevent people from living in the type of housing they prefer.