Time magazine has joined the growing chorus of pundits and talking heads bashing American homeownership. Homeownership, we are now told, was the cause of the economic downturn and financial meltdown that began two years ago. In this nightmarish version of the "American dream," the new ideal is a nation of nomads, wandering from city to city looking for jobs, with no community or famly roots.
It just so happens that I was too occupied last week helping clients in their responsible quest for just the right home to 
respond in a more timely fashion to Time magazine's recent cover story, The Case Against Homeownership. I am the first to advise a new client against embarking on home buying if, after our initial consultation, I determine they are not ready, either financially or in terms of putting down roots, to take this big step in life. But for those who are prepared, home ownership is vastly rewarding, and provides long term benefits to the owners and the community.
Lately, home ownership has been made the culprit for many of our nations' woes. Homeownership is neither a panacea to cure our ills, nor it is the cause of our economic and financial meltdown.
What went wrong, contributing to the meltdown? How about we start with:
- lax underwriting standards
- Moody's and other rating agencies giving their blessing to real estate junk bonds 
- yield spread premiums that encouraged lenders to put buyers into high interest loans
- buyers who lied about their income to get a mortgage, aptly named "liar loans"
- no documentation loans, "ninja loans" (no income no job)
- all the practices so aptly described in Michael Lewis' book The Big Short
- ARMs with low introductory teaser rates that explode into usurious interest rates
- real estate agents who encouraged their "clients" to buy homes they could not afford because "when the ARM re-sets you can just sell the house and make a lot of money"
- the idea of home as piggy bank instead of nest egg
Please feel free to add to this list!
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Dana Scanlon - Local Expertise ~ Global Advantage - in MD, DC & VA - 301-575-4915
Voted One of the Best Realtors by the Readers of Bethesda Magazine 2012 
Point the finger at someone else. Isn't that the easiest thing for Time or any other number of people to do? Take a wonderful thing like home ownership and make it something ugly. Makes me sick.
Your home is an investment that can provide slow and dependable appreciation over a long period of time while also giving you shelter, security, a way to express yourself, and memories. It is not an ATM. If you resisted the urge to refinance, you are more than likely okay in your home today. Homeownership is far better than any alternative.
Thanks so much for the post, I have been stewing mad about the cover of TIME and you put words to my frustration!
I like these points because it pretty much makes everyone accountable, lenders, realtors, government & the consumer. Everyone has some culpability here! Great summary!!!
Awesome post. My add: the 8k tax credit was taken away before it really had a chance to turn this ship around. Now the government is using our tax dollars on more bailouts, buying treasuries. I think we the people should have a vote on how to fix this mess.
And it isn't home ownership. Home ownership allows freedom to its owner, a lifestyle asset that keeps giving enjoyment and equity over time. (so long as equity isn't used foolishly).
Time magazine- lets see, how do they make money?... Oh.. advertising.. and readership and sales increase when there's a compelling front cover.. negativity in the news always sells.. human nature is drawn to it.
Dana - You are 100%, absolutely. positively correct! Great summary of the responsible causes of the meltdown too!