Jason HartmanCEO of Empowered Investor and Real Estate Tools

How Home Ownership Increases Unemployment

Name: How Home Ownership Increases Unemployment
Uploaded: 2023-08-25T20:01:21+00:00
Duration: 46 s
Channel: Jason Hartman
Description: In this segment, the presenter references the 2005 peak U.S. homeownership rate of about 69% and argues that such a high level of ownership creates…

25 Aug 2023 · 1 min

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In this segment, the presenter references the 2005 peak U.S. homeownership rate of about 69% and argues that such a high level of ownership creates significant problems for homeowners. He claims that high homeownership ties people to a single location, limiting geographic mobility—especially for younger individuals who need to move to where jobs and opportunities exist. This reduced mobility, he contends, leads to higher unemployment and underemployment rates because people cannot easily relocate to areas with better labor markets.

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In 2005, we reported the highest homeownership rate. We saw the homeownership rate rise into what? 69% of the population owned a home. It was absurd. You know, if you've been listening to me for any length of time, I think that that homeownership rate is too high, because the homeownership rate actually, when it's that high, it causes a lot of problems for the homeowners because they are stuck in one place, they can't move easily, they can't go to where the jobs are, and when they are young, should be able to move to where the opportunities are. And they want to try different places. They want to live in different cities, different towns, different suburbs. So high homeownership rates actually lead to higher unemployment rates or underemployment rates.