The federal government’s obsession with homeownership was one of the contributing factors to the financial crisis. It is time we recognized renting as a viable option for many households, and starting treating renters as if they were as equal citizens as anyone else.We were just studying this issue in my income tax course yesterday. Unfortunately, tax advantages for home-ownership are too ingrained into the tax code to likely change anytime soon. Any change that increases tax benefits to renters or decreases tax benefits to homeowners will have the effect of lowering property values. (Either change would make renting will become more attractive relative to owning a home than it currently is and decrease the demand for housing.) This seems to be one area of the law where Americans don't seem to care much about equality.
Wednesday, October 21, 2009
What's Wrong With Being A Renter?
Mark A. Calabria: