The Wall Street Jounal had an almost great article about home ownership, or how little most of own after years of making mortgage payments. Putting the "Own" back in Homeowner One of my pet peeves is the mortgage interest deduction, which encourages us to never pay off our mortgages.
The mortgage interest deduction makes no sense, and I'm in real estate. In fact, no incentives to home ownership make any sense. We need to have a mobile workforce to satisfy rapidly changing job market needs, not only in skills, but in geography. Right now the collapsed housing market in rural Northern California has many people trapped far away from the best job markets. If they leave they're forced to sell their home at a great loss, or rent it and suffer negative cash flow while trying to make rent or house payments at their new place of employment..
Home mortgage interest deduction makes as much sense as not taxing employer-provided health insurance as compensation. Where do we keep coming up with these dumb ideas? Oh, that's right, we don't. Politicians do, then buy our votes.