Essay On Living In Around The World

During the early 2000 's, the United States housing market experienced growth at an unprecedented rate, leading to historical highs in home ownership. This surge in home buying was the result of multiple illusory financial circumstances which reduced the apparent risk of both lending and receiving loans. However, in 2007, when the upward trend in home values could no longer continue and began to reverse itself, homeowners found themselves owing more than the value of their properties, a trend which lent itself to increased defaults and foreclosures, further reducing the value of homes in a vicious, self-perpetuating cycle. The 2008 crash of the near-$7-billion housing industry dragged down the entire U.S. economy, and by extension, the global economy, with it, therefore having a large part in triggering the global recession of 2008-2012.

Public housing is provided by the federal or state government and offers housing assistance to qualified low-income families. Public housing is funded and regulated by the federal government. State governments have housing authorities that administer and regulate public housing. The housing authorities often have long waiting lists (US Government, 2011).

Americans across the United States search for the perfect home, location and square footage of course a great price to pay for their castle. Finding an affordable place to live is ideal, and necessary for survival in this day of age. As the years go by the cost of living increases but Americans do not receive a cost of living raise. The demand for affordable housing is on a all time high, but so is the cost of housing in the metropolitan areas across the United States. America must take care of its citizens and should provide affordable housing programs, to assist Americans to either purchase or rent a home.

Access to resources has been historically constrained in the U.S. on the basis of ethnicity, race and most recently class. This differential access to resources is a result of overt structural forces that create barriers to employment, housing, education and neighborhood investment. The political policy of “redlining” is a great example of how public policy can affect access to resources. This policy selectively avoided giving mortgages to individuals living in predominantly Black

Wilson (2011) research proves that the Federal Housing Administration (FHA), contributed to the early decay of inner city neighborhoods by withholding mortgage capital and making it difficult for these areas to retain or attract families who were able to purchase their own homes. As the federal government created this program it excluded certain inner city neighborhoods. This exclusion created “redlining” which assessed primarily on racial composition. People who wanted to get out of public housing and purchase a home in a redlined neighborhood were denied proper mortgages, even if they had sufficient funds. Wilson (2011) says that such restrictions such redlining restricted many opportunities for building or even maintaining quality housing in the inner city, which in many ways set the stage for urban blight that many Americans now associate with black neighborhoods. Policies like this one were created to make blacks stay in the inner city

Dictionary.com defines the process of redlining as, “A discriminatory practice by which banks, insurance companies, etc., refuse or limit loans, mortgages, insurance, etc., within specific geographic areas, especially inner-city neighborhoods.” This practice became far more prevalent in the 1930’s, subsequently becoming a staple of the housing market up and until the passing of the Fair Housing Act which was passed in 1968, theoretically preventing landowners from participating in the practice. However, while the actual term wasn’t coined until the early twentieth century, the ideologies that held up redlining had been seen since the 1860’s. With the founding of Oregon as a state, the later practices of redlining in suburban communities

It was defined as “ Practice of banks or insurance companies to provide no loans or coverage for people, property, or businesses located in neighborhoods that are declining or deemed too risky for the financial commitment. “ (Yang. 178) “The government also set up a national neighborhood appraisal system that explicitly tied mortgage eligibility to race. Integrated and minority communities were ipso facto deemed a financial risk and made ineligible for low-cost home loans, a policy known today as ‘redlining.’” (The Power of an Illusion, "The House We Live In”)

Public housing is another program that helps to provide a roof over a family’s heads for reduced costs. Rent in some places can be quite high and a family of four may find it hard even to afford a small 3 bedroom house without breaking their pockets.

The housing crisis of the late 2000s rocked the economy and changed the landscape of the real estate business for years to come. Decades of people purchasing houses unfordable houses and properties with lenient loans policies led to a collective housing bubble. When the banking system faltered and the economy wilted, interest rates were raised, mortgages increased, and people lost their jobs amidst the chaos. This all culminated in tens of thousands of American losing their houses to foreclosures and short sales, as they could no longer afford the mortgage payments on their homes. The United States entered a recession and homeownership no longer appeared to be a feasible goal as many questioned whether the country could continue to support a middle-class. Former home owners became renters and in some cases homeless as the American Dream was delayed with no foreseeable return. While the future of the economy looked bleak, conditions gradually improved. American citizens regained their jobs, the United States government bailed out the banking industry, and regulations were put in place to deter such events as the mortgage crash from ever taking place again. The path to homeowner ship has been forever altered, as loans in general are now more difficult to acquire and can be accompanied by a substantial down payment.

The increasing homeownership rate in the United States is a worthwhile policy goal. The housing economy creates jobs for American citizens as well as brings down the competitive qualities to purchasing a home allowing more middleclass citizens to spend money on houses. In doing so this drives the overall economy up in the United States.

As we now know, the U.S. economy, the middle class, and its job growth was damaged by the overwhelming collapse of Wall Street, which was triggered by the downfall of the housing market and sub-prime loan defaults. One of the main things that need to be addressed in our economy today is the housing market and making sure that our banks and credit unions are not allowing people who do not have the necessary income to pay their mortgage disbursements. In an article entitled Thinking outside the Housing Bubble, the author John Vogel remarks how the economy is generally supported by the housing market. Vogel states:

Statistically, one out of seven families live in severe physical deficient housing. In fact, the housing and stock market revealed in July of 2009 that the Great Recession further widened the gap and income disparity between the average, hard-working Americans and the top 1% of wealthy Americans. Edward N. Wolff suggests that the average American produced a massive 36.1% drop in overall marketable assets while the top 1% of wealthy Americans only lost 11.1%. This income gap disparity ensures that ever-increasing need for affordable housing as the economic crisis worsens.

The economic decline has possible home buyers, especially first time home buyers, scared to invest anything into the housing market. With the fear of another depression in the back of everyone's minds, some businesses are attempting to clarify the pros of home ownership.

Homeownership is a double-edged sword. It is the “American Dream” to one day own a house. Compared to their predecessors, Millennials are seeing the advantages and disadvantages of homeownership at an earlier age.  These early generations believed owning a house was the cherry-on-top to being an all-around American and achieving the “American Dream”. As a cynical generation who grew up with information at our fingertips and the world falling around us, millennials see homeownership differently. “The cautious and conservative approach to home buying displayed by millennials is driven by the fact their outlook on life was shaped by a number of bad things when they were young—the terrorist attack on the World Trade Center in 2001, the 2008 financial crisis, the housing bust with mass foreclosures and a weak recovery that has so far provided incomes below that of prior generations” (Stowe England, 36). We learned that the world was not fair and that it is time to redefine the “American Dream” to reflect our current economic society.

Thesis Statement: Buying a home has many advantages and disadvantages but for many people the good overpowers the bad.