Blog: Home Ownership At All Costs

Added December 7, 2007 by Melanie G. Rogers

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Yet another group is speaking out against President Bush's mortgage proposal.

The National Multi Housing Council, which represents the interests of the rental housing industry including owners, construction firms, financiers and property managers, is fuming about Bush's plan.

"Unfortunately, while there was much the government could have done to prevent this crisis, there isn't much it can reasonably do now to alleviate it," said Doug Bibby, NMHC president. "What it can do, however, is recognize its own mistakes and ensure that this doesn't happen again. And that means, among other things, recognizing that homeownership isn't the right housing choice for all households at all points in their lives."

That's a huge takeaway. People can create wealth in ways other than purchasing a home. People can buy homes following safe financial practices like saving for a down payment and making sure they have enough money for not only the monthly mortgage payment but also for taxes and insurance.

Bibby also said the government tried to create federally-backed no-down payment loans, encouraging the current housing crisis.

Bush's plan "won't change the fact that house prices clearly remain above their equilibrium level, as shown by the continuing drop in house sales and increase in the inventory of houses for sale," Bibby said.

How much role the government should have in the housing market remains debatable, but the NMHC clearly blames this administration for the plight of those who bought more home than they could afford.

Dec. 7, 2007

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