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American Focus > Blog > Economy > Lipow on the Relationship Between Home Ownership and Unemployment
Economy

Lipow on the Relationship Between Home Ownership and Unemployment

Last updated: September 13, 2024 3:41 pm
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Lipow on the Relationship Between Home Ownership and Unemployment
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Reconsidering Home Ownership: A Progressive Perspective

Back in July, I wrote about the thought-provoking book Public Policy for Progressives by Jonathan Lipow. Today, I want to delve deeper into a fascinating concept he discusses regarding the relationship between high rates of home ownership and social pathologies.

In his book, Lipow credits British economist Andrew Oswald for the insight that countries with high rates of home ownership also tend to experience high rates of unemployment. The reasoning behind this correlation is quite intriguing. It suggests that the ability to easily relocate for job opportunities is hindered by home ownership. As a renter, it is relatively simple to give notice to a landlord and move to a new job in a different location. However, for homeowners, the process of selling a property and finding a new job in a different area can be much more cumbersome and costly.

This issue raises questions about government policies that incentivize and subsidize home ownership. Lipow argues for a shift away from promoting home ownership and instead advocates for policies that support rental housing. While some may suggest building more student housing as a solution, others, like myself, believe in deregulating the housing market to increase supply and affordability.

One interesting point to consider is Lipow’s proposal to reduce government subsidies for home ownership. By removing these incentives, individuals may be more inclined to consider renting as a viable option, allowing for greater mobility in the job market.

Overall, the discussion on the impact of home ownership on unemployment rates presents a unique perspective that challenges traditional views on housing policies. It is essential to consider the broader implications of government interventions in the housing market and explore alternative approaches to address issues such as job mobility and economic stability.

See also  Northern Trust price target lowered to $118 from $119 at Wells Fargo

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