Home owning in the 1990s

Abstract

H rousing is widely accepted as an important ele.ment of personal consumption. Because the typical American household spends more than 25 percent of its disposable income on housing, changes in housing market conditions receive significant attention. While shelter is as essential as food and security, housing provides more than mere shelter. Consumption of housing also gives access to local public goods and amenities, as well as a sense of social identity. Homeownership is often elevated in importance to that of housing consumption itself. Indeed, a major element of the "American dream" is owning a home. For a large segment of Americans, home.ownership is a primary form of personal investment (savings). But homeownership generates utility for households beyond the potential pecuniary advantages of asset ownership. Historically, property ownership has bestowed community recognition as well as other rights and privileges, such as the right to vote or other forms of participation in the political process. Homeownership also connotes stability and remains an important symbol of status, a badge of accreditation. It is among the key indicators of credit worthiness.