18 Pages Posted: 23 Feb 2009
Date Written: February, 23 2009
There's something about "Affordability" that makes it very popular: Presidents past and present set goals around it. The popularity of this perennial policy goal is based on the feel-good idea that everyone would live in a home that they own if only they could afford it. Owning your own home is declared near and far to be the American Dream. Recently, however, it seems that Americans' aren't all having the same dream. Despite improving conditions of affordability, home sales continue to decline. As income becomes unstable because of mounting job losses, housing falls further out of balance - no change in price or mortgage interest rates will be enough to rebalance the tripod in the next year.
Keywords: Housing, Affordability, Income, Employment, Finance, Homeownership, Real estate, Mortgage
JEL Classification: G00, R21, R31, L85
Suggested Citation: Suggested Citation