The Demise Of The Ownership Society

Jun 21st, 2008 @ 1:44 PM by Alden Smith

It appears that the ownership society of America has silently slipped down the tubes.  Mentioned by President George W. Bush in a speech February 20, 2003 in Kennesaw, Georgia, it grew full blown in 2005, with specific policy proposals concerning medicine, education and savings.  Brought on by a tax cut proposal by Bush,  it was built heavily on the administration efforts of Margaret Thatcher.  Today, there is not the ghost of a chance that this will ever see the light of day.

Recent figures I researched on the number of Americans going the OTHER way show that more and more people no longer own, but are renting homes and apartments.  The number of homes lived in by owners fell to 67.8 percent this year, the sharpest decline in 20 years.  This follows on the heels of a rise in 2005, when it reached a height of 69.1 percent.

The reasons for this are simple.  The mortgage crisis has put these people in a position where their credit is no longer good, they have lost their homes, and it will take a generation to turn it around for them.  The idea of having something to leave the kiddies is now gone.  And even if people are able to finance a home right now, caution is the watchword, and they are hesitant to buy.

We saw amazing gains in home ownership in the past two hears, making Bush’ plan look like a good idea.  Little did we know that the cost would be as high as it was.  William C. Apgar, a senior scholar at the Joint Center for Housing Studies at Harvard University who ran the Federal Housing Administration from 1997 to 2001, said “We’re seeing more dramatic growth in renters and a decline in the number of owners. People are beginning to understand that home ownership can be a very risky venture.”  Mr. Apgar said the Joint Center had predicted an increase of 1.8 million renters from 2005 to 2015.  We see a rise of 1.5 million renters from 2005 to 2007 alone.  35.7 million people were renting homes or apartments in the first quarter of this year.

Hardest hit are minorities and immigrants.  Rents have increased about 11 percent since 2005, and even finding a decent apartment is getting tough.  Compounding that is the fact that apartment managers are leery of renting to a couple with a low credit score – the result of a foreclosure – regardless of their income.

The figures in the market are staggering.  Rental properties are reaching higher levels, people are not able to get into an apartment if they find one because of their credit, and condominiums are being turned into rental units – at a price the average American cannot afford.  I’ve always been told that renting was the worst possible scenario for anyone – you build no equity and the payments never stop.  At least then you could find an apartment, and could afford to live.  That becomes harder and harder for Americans each passing day.

One Response to “The Demise Of The Ownership Society”

1. Sara Lee says:

   June 27, 2008 at 12:37 am

   This is fantastic with the high level of rental services you can get a loan that has a short term.

   ………………………………………………………

   Sara Lee

   http://www.loan-digger.co.uk/
   short term loan