14 The EconomistFebruary 15th 2020
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As safe as houses
Though your attempt at
presenting the issue of home
ownership was engaging and
unique, the coverage was
incomplete (Special report on
housing, January 18th). Home-
ownership rates vary wildly
across countries for a number
of reasons. For example, to cite
Romania’s high rate of private-
home ownership, which went
from zero to 95% virtually
overnight after the collapse of
communism, as somehow a
failure because Romania still
“has its fair share of social
problems” is absurd. As is
mentioning Japan’s affordable
homes without acknowledging
its declining population. To
verify if these two variables are
related consider Youngstown,
Ohio, where the population is
also falling and housing is
exceedingly affordable.
You correctly point out that
the rapid rate of job creation in
San Francisco has pushed
home prices to record high
levels, but this is more the
result of misguided local poli-
cy that has prevented devel-
opers from building homes
than anything else. In fact,
Texas and Utah have enjoyed
even stronger job creation, but
home prices in those states are
manageable because construc-
tion has been relatively active.
Home ownership provides
immense benefits for our
country (economic growth),
local communities (civic
engagement) and for families
(wealth creation and stability
that allows children to excel).
In your dismissal of the posi-
tive values of home ownership,
several questions should be
asked. Who would own proper-
ty, if not homeowners? Would
it be landlords, small and
corporate, and the govern-
ment, but not the mass of
citizens? Would a corporate
oligarch-controlled property
market provide for a better
society? What about a govern-
ment-owned one? The answer
to all these is a resounding no.
lawrence yun
Chief economist
National Association of
Realtors
Washington, DCI don’t agree that “Singapore’s
public-housing system helps
improve social inclusion” and
is the model to copy. Its sub-
sidised housing market is an
income-regressive apology for
a social-security system, one
positioned in a wildly unequal
society, where the elderly and
disabled still have to clean the
tables of the expats and tax
havenites who make their lives
increasingly unaffordable. If
Singaporeans were provided
with a respectable and progres-
sive welfare programme, they
might rely less on their govern-
ment for housing and invest
their funds in other assets.
meghna basu
SingaporeReaching retirement age with-
out the security of home own-
ership is irresponsible. The
senior citizen who has paid
rent for 30 years has still
bought property—for the
landlord. Tenants have no
long-term security. They can be
asked to leave a property at any
time. Landlords may fail to
make repairs or control nox-
ious neighbours. Home own-
ership is the surest kind of
nest-egg. People are living
longer. Security of place is
basic to a comfortable old age.
julia viera
Coronado, CaliforniaNimbyism significantly con-
tributes to bad policies that
exacerbate the growing gulf
between those seeking hous-
ing and housing availability.
Policymakers would do well to
read your report and examine
thoughtful, sustainable sol-
utions that treat rental housing
as a valuable part of their com-
munities. Proper zoning and
planning can address the
affordability crisis by making it
easier to add more supply as
well as lowering our respective
carbon footprints. As more
people choose to rent a serious
conversation is long overdue
to address their needs, rather
than continually crafting
policy to protect homeowners.
robert pinnegar
President and ceo
National Apartment
Association
Arlington, VirginiaContrary to the implications in
your report, today’s indepen-
dent mortgage banks are
appropriately regulated, not
just by the federal Consumer
Financial Protection Bureau
and state regulators, but also
by counterparty agreements
with Fannie Mae, Freddie Mac,
Ginnie Mae, and the lenders
that extend them credit. As a
result of the regulations that
were implemented after the
financial crisis, these compa-
nies are operating in the safest
and soundest mortgage-lend-
ing environment for decades.
In the aftermath of the
crisis, it was the independent
mortgage banks that stepped
up to support the housing
recovery, providing credit to
millions of well-qualified
low-to-moderate-income,
minority, veteran and first-
time homebuyers. Rather than
fret over their market share,
regulators should focus on
why these banks are being
driven away from the mortgage
business.
bob broeksmit
President and ceo
Mortgage Bankers Association
Washington, DCDemographics drive house
prices, too. The labour-force
participation rate for women
has ballooned over the past 75
years and dual-income couples
now account for the majority
of households. The resulting
growth in household income
helps explain in part why
house prices have risen. But
the age of first marriage has
also increased, so attaining a
dual household income comes
later in life. “Still single”
millennials will find it increas-
ingly harder to step onto the
home-ownership ladder.
john swettenham
OttawaModular construction saves
building time, loss of material
and environmental costs
because of the easy ways to
disassemble entire buildings
in blocks. In Amsterdam,
undeveloped sites are being
leased out for ten years to
social-housing associations.
High quality flats are built
within a few months. After thelease period, the buildings are
disassembled, refurbished in a
factory and moved to another
location for re-use. Modular
construction is 100 years old,
espoused by great names in
architecture such as Le Corbu-
sier and the Bauhaus school.
frank van ooijen
Breda, NetherlandsMade-to-measure smart mate-
rials use 3dprinting. In 2018
Amazon invested in Plant
Prefab, which makes prefabri-
cated smart homes. “Alexa,
construct me a home” may
soon be an option. The result-
ing lower housing costs will
truly be something to build on.
christoph feest
Neuried, GermanyHomelessness isn’t just about
economics; a large number of
rough sleepers suffer from
mental illness. Meanwhile,
developers are constructing
ever-higher apartment build-
ings in our cities that are
bought for investment by the
wealthy, who rarely use them.
And they block the sunlight.
rebecca taub
New YorkPart of the appeal of homeown-
ers is the notion that they are
motivated to maintain their
property. Yet a recent survey
found that a third of millennial
dads do not even own a ham-
mer. Perhaps we have lost the
do-it-yourself culture, or ca-
reer mobility has undermined
the enjoyment of labouring on
your home. Your questioning
of home ownership was
uncomfortable, but necessary
in a changing world.
gerald loeb
South Pasadena, CaliforniaRenters miss out on one of the
great pleasures of home
ownership: making the final
mortgage payment.
ken obenski
Kona, Hawaii