The Broader Market

by Camille Busette and Jordan Eizenga

Homeownership has long helped low- and moderate-income families build wealth that allows them to start businesses, educate their children, and retire with dignity. As a result of the recent housing and financial crises, American families will not have the same opportunity to build wealth through homeownership anytime soon. While sustainable homeownership remains an important goal, policymakers should explore other avenues to help low- and moderate-income families build household wealth. If we want to put these families on the path to homeownership, then we have to develop a comprehensive set of national policies that provide opportunities for and incentivize savings.

Unfortunately, the existing government incentives to save, invest, and build wealth are poorly advertised to the households that could use them the most. (For the rest of the issue brief, see here.)