The Changing Prospects for Building Home Equity

In the Spring of 2008, the Center for Economic and Policy Research and the National Low Income Housing Coalition released a joint report comparing ownership and rental costs in the 100 largest metropolitan areas.  The report found that in 34 bubble markets, new homeowners would likely lose home equity by 2012 if they purchased a modest home.  Today, the authors find the prospects for building equity by 2012 somewhat improved in 36 cities.  Since there is still a great disparity between home prices and rent levels in most bubble markets, the report argues against policy makers intervening in the housing market to maintain high home prices.  Instead, policies should be made that encourage occupancy, discourage vacancy and maintain employment.
 

The report covers:

1)  Ownership and Rental Costs: A Historical Perspective 
2)  Ownership and Rental Costs in 2008 
3)  The Prospects for Accumulating Equity 
4)  Policy Implications

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