"Is Homeownership All It's Cracked Up to Be?" The Changing Face of Housing in the US

According to Trulia, a real estate website, buying is still cheaper than renting in 74% of the 50 largest US cities. It's truly a buyers' market - think of the foreclosed Vegas condos you could buy for a fraction of what their original owners paid! The Chicago Tribune reports that in Detroit, you can buy a whole house for $7,500 (notable, albeit on the extreme end of affordability). If enough people get together to commit to buy a block or two of houses, sections of Detroit could become veritable neighborhoods, if not just communes. Sounds like a great business plan...

Homeownership has been part of the American Dream for quite some time. Homeownership is seen as an investment, a money-maker, and a means of establishing your personal and financial stability. The idea of owning a home is so inspiring that a slew of well-funded, long-standing nonprofits - i.e. Habitat for Humanity and Rebuilding Together - are founded upon the idea of providing a home to those who couldn't otherwise afford them. The idea is so inspiring that it also led policy-makers to permit banks to make home loans to people who can't repay them, led houses to be overvalued so that buyers would believe their "home investment" was gaining in real value - or paying more to begin with - and other things that led to the crises over the past few years.

In June 2010, Sheila Bair, president of the FDIC, broached the idea that maybe - just maybe - homeownership is not for everyone. Not everyone can afford one, not everyone is ready for the responsibility of owning a house, etc. (College isn't for everyone either, despite common belief.)

Additionally, homeownership seems to represent the opposite of what the experts say is necessary in this new world economy. Instead of loyalty and steadfastness, the market is looking for flexibility in jobs and locations. Owning a home ties you to an area's shifting economy; those who bought houses in Las Vegas in 1995 are affected of that city's dramatic downturn, and since their mortgages are under water, most can't afford to leave to find a new job. Tight spot.

The US economy has been changing rapidly, and what worked for prior generations' realities might not work out for this one. Healthcare, education, employment, transportation, and housing are all experiencing drastic changes and new philosophies are cropping up all over the place. What's been your experience? What's your outlook?

Read "The Anxiety of the Forever Renter" (via the Atlantic Cities) for a great reflection on the writer's personal struggle to decide between renting and buying.

For now, I'm renting, and expect to continue doing so for the foreseeable future. I like the flexibility, I like indulging my restlessness, and I like being able to walk away from a bad situation or towards a better one. The benefits are outweighing the disadvantages at the moment.