LogFAQs > #972389959

If housing in the US was deflationary and instead of thinking it as an investment, you only get to live there until you're dead--sort of similar to how Japan is running their economy--would the welfare of our country increase?

There would be less foreclosures, and presumably people would be able to afford services and goods relative to their income, instead of spending a great deal of money on rent/mortgages as the equity for their house goes up or down according to demand. With scarcity in mind, having ownership of land seems ridiculous, especially when you consider the fact that people are buying multiple houses expecting a stream of income, when in reality you only need one home to live in. With the way the housing market is running in the US, it makes me think that the numbers have become politicized and that it exist only to show that our GDP is exponentially increasing. When in reality, the sentiment and welfare of people could vastly differ.