To own one’s home is the American dream. In 1950 2 – 2.5 years of the typical family’s income would buy a home. Remember that the wife didn’t work back then, and that it was just the husband’s income that made that possible. In 2025, it takes about 4.5 years income for the average family to buy a home, and that is based upon both husband and wife working. Which means that if only the husband were working, it would probably take close to 6 years income.

The bottom line is that housing has become much more expensive in the sense of affordability. Now, what are the reasons for that? Certainly, houses today come with more benefits like a dish washer, 2 car garages, security systems, and other niceities that didn’t come with the typical house in 1950. That might explain a small percentage of the price increase, but there is a much more obvious and insidious reason as well.

In 1950, we didn’t have a welfare state which serves both the rich and the poor. We didn’t have Health and Human Services, Department of Education Department of Homeland Security, student loans, and all of the other socialist boondoggles that are very expensive. Also, starting in 1971, we took away the gold backing of our U.S. currency allowing the government to print as much money as they wanted for whatever reason they wanted. Between these two, we are experiencing a huge cost of living increase.

Now, there is an objective on the part of large corporate interests to buy up large housing tracts to turn them into rental properties. This has already begun, and Trump has called for a halt to it. Will that hold? Doubtful, but who can say? It is worth examining what would happen if this should become the direction our society takes.

If corporations start buying up foreclosed homes in your neighborhood that people cannot pay for any longer, then those homes will become rental properties. Now, renters have a vested interest in leaving the landlord financially responsible for as much as possible. What this means is that there will be no pride of ownership involved, and therefore improvements will not be made. Not only that, but the general maintenance will decline – particularly if the person renting is suffering financial difficulties, or maybe just has priorities that don’t include taking care of their home.

As a result, the appearance of homes will decline, and thereby bring down the value of those rental properties, and in so doing will also bring down the value of homes in the neighborhood. If you own your home, you will lose, instead of gain, equity in your home. Therefore, you will have no incentive ultimately to maintain and improve your home. In fact if you do, you may create resentment on the part of your rental neighbors which could even manifest itself in vandalism and sabotage.

As an historic example, all you need to do is look at the projects for welfare recipients in inner cities. They have grafitti everywhere, are dilapidated, drug infested, crime ridden and highly unattractive. If that is too extreme, then look at apartment complexes, many of which after a few years begin to deteriorate, and begin to appear disheveled. There may be a few exceptions in particularly nice areas. In both cases, they are occupied by residents who have no vested interest in the property, and therefore have no motivation to keep it up. Human nature has not changed in all of history, so don’t expect it to change now.

The big corporate interests will want those homes fully occupied all of the time, so they will go to the government to make sure the government provides funds for the renters to be able to afford to live there. The wealthy and powerful see the rest of us as cattle to be herded and a work force to be utilized. Where do you fit in?

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