In 1934 the government put into place the FHA, the Federal Housing Authority to provide loans for people to buy homes. The housing industry was flattened. 2 Million construction workers lost their jobs. Terms were impossible for homebuyers to get mortgages.
America was a nation of renters. Only 4 in 10 households owned homes. The FHA made terms easy, they encouraged home ownership.
After World War II in the 1940’s FHA programs helped finance housing for returning vets.
Indeed, whole towns were built to accomodate the demand of military families. A builder named Levitt, built thousands of simple homes in New York called Levittown. With help of the FHA that insured lenders against losses incurred if the buyers defaulted on their loans, builders were encouraged to build more homes than America had ever seen before.
In the l950’s,1960’s,1970’s the FHA sparked the production of private ownership apartments for the elderly and low income families.
In the 60 years since the FHA was formed, Americans became the best housed people in the world.
This was one of the most important changes in American history. Now, the average man could be a property owner. This was the American Dream.
That soldier did not think his home would appreciate over time (although it did). He just wanted security and a home for him and his family.
THE SAME SHOULD BE TRUE TODAY. We should see property ownership as a home for our families not as an investment that must be counted on to make money for us. Being connected to a community,having friends nearby and putting down roots.
Single family homes and condos are at lower price levels than they were in 2002!
This is a wonderful time to buy a home and realize the AMERICAN DREAM.
Yes, it still makes good financial sense to own your home. Federal data shows that homeowners net worth in 2007 was $234k compared to $5100 for renting families.