Is and has the U.S. been over-celebrating homeownership? A recent piece from the WSJ has raised this question once again here. Since 1918 with the “Own Your Own Home” campaign, the U.S. has long promoted the virtues of homeownership. But as evidenced by the last recession, perhaps some people should just rent.
The above diagram shows the peak ownership rate in each city followed by the current homeownership rate (it has fallen in every city shown) and then the percentage of those owners who actually have positive equity (that is, their home is worth more than the mortgage they’re paying on it). The most alarming city – although maybe not – is Las Vegas. Only about a quarter of the homeowners are in the favorable position of not drowning in debt.
Image: WSJ
