The American Dream is simply a dream

[cube]

An American tax break designed to promote home ownership is actually reducing the chances of buying a home for those with low incomes. A study from Kansas State University and the London School of Economics shows the growing cost of houses is forcing people to have a larger amount of money as a down-payment.

Read the original report

Found on The Conversation

[Keithw]

Stupid symptom chasers again,
these people can't see the wood for the trees .
They even state it themselves:

tight land restrictions mean that the higher demand for owner-occupied housing – because of increases in the mortgage interest deduction -- will only bid up house prices without expanding the house stock, which in turn means higher down payments.

[Dean@Massiveaction]

What they don't say is that a lot of Americans rent and don;t want to own. Weird but true. It's actually hard to do lease options in many cases because people would rather rent than own. I don't understand it but I see it there a lot.

[halfempty]

I think I understand it a bit, huge country = transient population.

Jobs move round and so do people, so why buy?

[sdiraexpert]

Believe it or not, I am one who rents my primary residence and buys up a bunch of rentals. The larger homes that I would be interested in purchasing are in my opinion still over-valued and have too high of carrying costs. For me and many people in my situation the key to a wealth building strategy is to have as much available cash right now to accumulate assets and not get stuck with one big asset/liability to live in. Opportunity cost!