The Housing Needs of Lower-Income Homeowners

W98-8: Homeownership is still a prime goal for Americans, and a rising homeownership rate is good for our country. Families, especially lower-income families, build up equity while putting down roots in their neighborhoods, which grow more cohesive. Yet over time, as homes deteriorate, lower-income owners often are trapped. On the one hand their homes need increasingly costly repairs; on the other hand, their incomes barely suffice to pay the mortgage and taxes. Enabling people to live in decent housing is cost-effective in reducing illnesses, minimizing institutionalizations, and preventing injuries. With the number of lower-income owners expected to grow from 22 million in 1995 to 28.5 million in 2010, home repair and improvement needs will far outpace likely government aid and plausible private sector support…