Throughout most of the past decades from 1969 to 1999 approximately 66 to 66 percent of households were homeowners, according to the U. S. Census Bureau. During the next decade, homeownership rose to 68, then 69 percent.
Much of this rise was driven by government policies. Homeowners were rewarded with sizable tax deductions for mortgage interest and property taxes. The tax code all but eliminated capitol gains tax on the sale of a principal residence.
Home building boomed. Real estate investment was profitable. Homeowners went on a spending spree.
Was homeownership really as high as it seemed? In hindsight we know that too many of the supposed new homeowners had no equity, and were set up with mortgage payments that they could only afford for a few years. Eliminating those temporary homeowners, homewonership most likely was the same as it always was.
Inman News July 14, 2009