American politicians – both Republican and Democratic – hold up homeownership as a cornerstone of middle class life. No surprise, then, that housing policy in the U.S. tilts the playing field in favor of homeownership rather than renting. Federal tax policy gives special preferences to owner-occupied housing, through the mortgage interest deduction and capital gains exclusion. Local land use policies allow single-family homes to be built in more locations, and with fewer barriers, than apartment buildings.
Political rhetoric, again from both parties, reinforces the idea that renting a home should be seen as a temporary state, a waystation on the journey to the final destination of homeownership.
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