Is Owning A Home A Dream?

I’m often told that part of the the reason behind government intervention is that Uncle Sam needs to preserve the idea of the “American Dream.” I find this curious considering that I’ve met a number of people who choose not to own a home for a variety of reasons, but still consider themselves fulfilled and happy. As an example, personal finance guru Millionaire Mommy Next Door has often touted the benefits of renting as opposed to owning. Yet that doesn’t really help us in defining what the American Dream is, so let’s see what other sites have to say about it.

Library of Congress Learning Page

“The term was first used by James Truslow Adams in his book The Epic of America which was written in 1931. He states: “The American Dream is “that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement. It is a difficult dream for the European upper classes to interpret adequately, and too many of us ourselves have grown weary and mistrustful of it. It is not a dream of motor cars and high wages merely, but a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position.”

Answers.com:

“An American ideal of a happy and successful life to which all may aspire”

Wikipedia:

“The American Dream is the freedom that allows all citizens and most residents of the United States to pursue their goals in life through hard work and free choice.”

Now, looking over these explanations, I find the entry from the Library of Congress most useful, considering Wikipedia and similar sites are often known for being woefully inaccurate. Still, using any of these as a measure, you’ll probably note that home ownership is not a prerequisite for the American Dream. The basis then for owning a home often isn’t one of a vague sense of patriotism but rather a more pragmatic reason, profit.

Particularly so in the past five years, consumers bought homes not in according to their ability but in accordance with their credit limit. As a result, some consumers are more than happy to walk away from the “dream” of home ownership when it no longer makes financial sense for them to do so. The stability and security of ownership will likely be a continuing factor in wanting to buy a home, but it’s important that we, as consumers, appreciate home ownership for those qualities and not necessarily as a valuable investment ever destined to climb in value.