Ownership improves our community - regardless of age
This blog article is a response to Rebecca Thorman's recent write-up on Modite.com.
Thorman recently wrote that, "Life and community, my friends, just isn’t the same. And nowhere is this so obvious, in-your-face and damning than the current alarm of the real estate market."
Not the same? I would have to agree. It's not the same, but would argue that it's not due to the real estate market decline. Life and community has changed dramatically with the increase in flow of information (email, cell phone, text, facebook, twitter, etc.) Community is all about how we interact in this crazy world. If anything our interactions have been increased by this heightened level of communication in the information age of the past 10-20 years.
She goes on, "Before the economy collapsed, young people were being locked out of the housing market by astronomical housing prices and by our predecessors, Generation X and the Baby Boomers, who grew even richer."
I don't believe that's entirely true. Many people (young, old, and in between) flooded the real estate market more than ever between 2000 and 2006 because a lot more people could finally qualify for a loan without much of anything. During that time there were loan programs that would lend money for a mortgage to someone with no income, no job, and no assets. Aha...young (or old) person with not much money says, "sweet, I can buy a house." Then all of a sudden they lost their job at XYZ company and had a difficult time paying their mortgage. But it's all good because they didn't really have any money (aka down payment) in the game anyway, so they just walked away. And foreclosure rates are higher now than a year ago. Big surprise.
Thorman goes on, "Now that the housing market has collapsed, it means more young people are content with not owning a home. But as the prevailing American sentiment goes, if you don’t own something, you don’t have a stake in the future of our country. Young...