"During the bubble years, the median period of homeownership was just 5 years. In prior times it was 7 years overall, but less than 5 years for low- and moderate-income families. With house prices likely to fall another 10-15 percent as the remaining air goes out of the bubble, it is improbable that even a homeowner who ends up with zero equity as a result of a principle write-down will have accumulated any equity at the point where they sell their home.
Furthermore, most modifications are likely to still leave homeowners paying more in ownership costs than they would pay to rent a comparable unit. This means that each month, they are effectively throwing away money that they could otherwise spend on their children, on saving, or other uses. It is difficult to see how this excess spending on housing benefits homeowners and their families."
- Dean Baker, CEPR
Subscribe to:
Post Comments (Atom)
1 comment:
Okay, the joke was on me. Now please remove my email address from your email notifications. I didn't realize what was going on until several hundred members e-mailed me directly about a few of your posts. I have nothing against anonymity but please don't overstep your bounds on fair-use policy. I would say something nastier if I didn't enjoy your info.
(the real vreporter)
Post a Comment