A statement of Janneke Ratcliffe, Associate Vice President, Housing Finance Policy Center, Urban Institute before the Committee on Housing & Community Development Boston City Council on August 10, 2021.
“The Views expressed are my own and should not be attributed to the Urban Institute, its trustee, or its funders. I thank Jung Choi for her excellent research in preparing this testimony.” - Janneke Ratcliffe
Chair Edwards and councilors of the Committee on Housing & Community Development, thank you very much for inviting me here today. I am Janneke Ratcliffe, Assistant Vice President of the Urban Institute’s Housing Finance Policy Center; the views I express today are my own and should not be attributed to the Urban Institute, its board, or its funders.
Homeownership brings many benefits. Compared with people who rent, homeowners are more civically engaged, experience better mental and physical health, and have a greater sense of control over their lives. Financially, homeowners lock in most of their long-term housing cost with a fixed rate loan, and with each monthly payment, they build more equity. Even with modest appreciation, investment in a home can easily beat the return that might have been had putting the down payment into the stock market.
These facts together make homeownership the cornerstone of wealth building in the US, and homes are most households’ largest asset. As this asset grows, it forms the basis for further wealth by funding businesses, paying for higher education, and helping children buy their first home. In fact, all else equal, we find that when parents own a home, their children are more likely to be homeowners as young adults (ages 18–34).
Click here to read Janneke Ratcliffe's full statement to the Boston City Council