A Reckoning For The Ideology Of Homeownership

Dean Baker of the Center for Economic and Policy Research (CEPR) chastises those whom he calls the "homeownership ideologues" for promoting homeownership to lower income households.

2 minute read

April 22, 2008, 11:00 AM PDT

By Michael Dudley


"The economy is sinking into a recession and faces the worst financial crisis since the depression. The unemployment rate is rising, the foreclosure rate is soaring and home prices are plummeting. It's time to settle some scores with the people who brought us to this sorry state of affairs.

The identity of some of the villains is already widely known...But there is one group that still needs to be singled out for their role in bringing about this disaster: The ideologues of homeownership. These are the folks who push the ideology of homeownership as an end itself. They insist on lavish government subsidies, even in situations where homeownership is not a good solution for the people affected.

To be clear, homeownership is often desirable. It can be a mechanism for providing good secure housing and, also, for accumulating wealth. It is, therefore, reasonable to have policies like a limited mortgage interest deduction or credit that make it easier for low- and middle-income people to become homeowners.

However, homeownership should not be viewed as an end in itself. One of the reasons millions of families face foreclosure and/or the loss of their life's savings is the ideologues of homeownership continued to promote homeownership even when it was clear buying a home would be financially detrimental.

In the interest of promoting better housing policy in the future, it is important to have a public acknowledgment of the follies of homeownership ideology."

Monday, April 21, 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

Get top-rated, practical training

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.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Hot air balloons rise over Downtown Boise with the State Capitol building visible amidst the high rises.

The Five Most-Changed American Cities

A ranking of population change, home values, and jobs highlights the nation’s most dynamic and most stagnant regions.

April 23, 2025 - GoodMigrations

People biking along beach path with moored ship in San Diego, California.

San Diego Adopts First Mobility Master Plan

The plan provides a comprehensive framework for making San Diego’s transportation network more multimodal, accessible, and sustainable.

1 hour ago - SD News

Sleeping in Public

Housing, Supportive Service Providers Brace for Federal Cuts

Organizations that provide housing assistance are tightening their purse strings and making plans for maintaining operations if federal funding dries up.

2 hours ago - KSL

Conductor walks down platform next to Amtrak train at station in San Jose, California.

Op-Ed: Why an Effective Passenger Rail Network Needs Government Involvement

An outdated rail network that privileges freight won’t be fixed by privatizing Amtrak.

3 hours ago - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Building Inspector

Village of Glen Ellyn

Manager of Model Development

Central Transportation Planning Staff/Boston Region MPO

Senior Planner

Heyer Gruel & Associates PA