Homeownership as a vital part of the American Dream can be traced back to the early 19th century when Thomas Jefferson and other Founding Fathers promoted the concept of property ownership to ensure individual liberty and economic security. However, it was in the early 20th century that homeownership became a national goal.
In 1934, the Federal Housing Administration (FHA) was created to provide mortgage insurance to lenders, making it easier for people to buy homes. The FHA also set construction and lending standards, which helped improve the quality of housing in the United States.
In the years following World War II, the federal government continued to promote homeownership through programs like the GI Bill, which provided home loans to veterans. As a result, the homeownership rate in the United States rose from 44% in 1940 to 64% in 1960.
By the 1960s, homeownership had become a central part of the American Dream. It was seen as a way to achieve financial security, build wealth, and pass on a legacy to one's children.
In recent years, the homeownership rate in the United States has declined. Still, it remains a crucial part of the American Dream for many people. A 2020 survey by Bankrate found that 74% of Americans believe owning a home is an essential part of the American Dream.
Here are some of the reasons why homeownership is seen as such an essential part of the American Dream:
Of course, homeownership has its challenges. It can be expensive, and it can be a lot of work to maintain a home. However, for many people, the benefits of homeownership outweigh the challenges.