Friday, February 27, 2009
Rents still rise as home prices fall; why?
Robert Lerman has an interesting op-ed on p A25 of the Friday Feb 27, 2009 Washington Times, “Renters a key to housing market: The costs rise as home prices keep declining,” link here.
Lerman argues that in some cities HUD rent subsidies would go further if applied to home purchase. This might stop the home prices slide in some cities without additional taxpayer investment and restore home ownership, particularly to families. On the other hand, it does encourage consumers to take on some debt again, and perhaps at some additional risk. Are renters still second class citizens after all this? Often they have been displaced by investment owner default, too.