Own to Rent?

Dean Baker of the Center for Economic and Policy Research suggests that one way that the federal government could help millions of Americans squeezed by the housing crisis is to permit homeowners to enter "own-to-rent" arrangements.

2 minute read

February 13, 2008, 7:00 AM PST

By Michael Dudley


"The government can't shield every homeowner from the collapse in house prices, but it can help out the most vulnerable among this group. The simplest way to help moderate-income homeowners facing foreclosure is to adopt an "own to rent" policy under which the rules on foreclosure would be temporarily changed to allow moderate-income homeowners the option to remain in their home as renters."

"Under this own to rent plan, the judge handling a foreclosure would call in an independent appraiser, who would determine the rental value of a house in the same way an appraiser determines the sale value of a house before a bank issues a mortgage. The homeowner would then have the option to remain in the house as a tenant, paying the rent determined by the appraiser."

"This policy would provide some security to millions of moderate-income homebuyers. They would have the assurance they would not be thrown out on the street by a foreclosure. More importantly, this own to rent policy would provide the mortgage holder with a very strong incentive to negotiate terms that allow the homeowner to keep ownership of their house because banks are not interested in becoming landlords."

"In the run-up of the housing bubble, millions of moderate-income families purchased homes, following the advice of politicians, investment advisors, economists, community groups, and a lot of other people who should have known better. The poor should not again be forced to pay for the bad judgment of the policy elites. Own to rent is a very simple policy that can make a huge difference for millions of people. In the absence of a better proposal, Congress should have it at the top of its agenda."

Monday, February 11, 2008 in Truthout

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Google street view image of strip mall in suburban Duncanville, Texas.

Adaptive Reuse Will Create Housing in a Suburban Texas Strip Mall

A developer is reimagining a strip mall property as a mixed-use complex with housing and retail.

4 hours ago - Parking Reform Network

Blue tarps covering tents set up by unhoused people along chain link fence on concrete sidewalk.

Study: Anti-Homelessness Laws Don’t Work

Research shows that punitive measures that criminalized unhoused people don’t help reduce homelessness.

6 hours ago - Next City

Aerial tram moving along cable in hilly area in Medellin, Colombia.

In U.S., Urban Gondolas Face Uphill Battle

Cities in Latin America and Europe have embraced aerial transitways — AKA gondolas — as sustainable, convenient urban transport, especially in tricky geographies. American cities have yet to catch up.

July 6 - InTransition Magazine