5Government Housing Policy: The Proximate Cause
FOR MANY YEARS, DATING BACK TO THE 1930S NEW DEAL, A WIDE variety of government policies have been enacted to artificially encourage homeownership. The goal has been to drive the rate of homeownership (the percentage of families that own a home) above the natural market rate. There have been more subsidies for housing than for any other economic activity. Tax policy (the tax deductibility of interest on your permanent residence) has long subsidized housing. In the last 40 years, many other financial incentives have been added to subsidize housing.1
Being a longtime homeowner, I understand why people want to own houses. Of course, many of us associate our home with our family. In the back of our ...
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