In response to:

The Long Run Decline in Actual Homeownership

R.3 Wrote: Feb 12, 2013 11:23 AM
In 1990 I bought a house for $125K. The seller bought the house in 1960 for $15K. I attempted to calculate what the house would be worth had it appreciated at the same rate for 30 years. Being no math wizard, I came up with over $1 million dollars. I also calculated had I stayed in the house and paid the 30 year mortgage, I would have paid for the house 3 times over. It was, indeed, a good deal for a mortgage broker and a real estate agent. Not so much for me or anyone else who holds a 30 year mortgage. What a racket. The housing bubble did nothing for the home owner but made alot of hit and run lenders alot of money. The same thing is now happening in the college loan industry. Cronyism lives and pays well.

It would be far more accurate to label U.S. federal homeownership policy, U.S. mortgage policy.  For the primary means of “extending” homeownership, via federal policy, has been the massive increase in mortgage debt.  Sadly the actual trend increase in homeownership has been close to nothing since 1960. 

If the ultimate intent of housing policy is to help build wealth and enable families to have something to pass along to future generations, then the right measure should be home equity.  Even better measure would be the percent of homeowners...