For some time, theorists have been suggesting that it is time to redefine the American Dream of home ownership. Households, we are told, should live in smaller houses, in more crowded neighborhoods and more should rent. This thinking has been heightened by the mortgage crisis in some parts of the country, particularly in areas where prices rose most extravagantly in the past decade. And to be sure, many of the irrational attempts – many of them government sponsored – to expand ownership to those not financially prepared to bear the costs need to curbed.
Those who would reduce home ownership to ensure mobility need lose little sleep.
The $138,990 new house in suburban Indianapolis (2,760 square feet, excluding garage, 255 square meters) will be of particular interest in Australia, New Zealand, the UK and some US areas (California, Portland, Seattle, New York, Boston), where such prices became a thing of the past in recent decades as serious constraints on land were implemented, forcing house prices up substantially in relation to incomes. See the Demographia International Housing Affordability Survey (http://www.demographia.com/dhi.pdf)