charlabob
I think Krugman is absolutely right — owning a home has been deemed a badge of entry into the middle class and everyone is supposed to want to enter. Now the value is dubious and not getting any brighter.
We own–we’re probably still above water, since we bought in 1999. The tax break is good. Not being at the mercy of landlords who want to sell or refuse to fix anything is good. Being at the mercy of ourselves, when it comes to fixing anything, isn’t always good. :-)
Personally, I’m hoping this market will encourage cooperative house purchasing and other forms of creative living — for example, groups of people making plans to live together and grow old together. If one single-family or person can’t afford a house, perhaps several can.
Sue, do you think some of the folks you see are just walking away from houses that will never be worth what they paid? Buying a house was supposed to be an investment — even for people who didn’t buy to flip and invest. Now, people have lost tens of thousands of dollars on their investment over the past couple of years.
I’m not sure what they’re “supposed” to do.