Out of House and Home:
Why Housing Law is Not the Path to Wealth Equality in the US
Maxwell Guo
Durham School of the Arts / 12th Grade
Background
Context | Terminology |
• Universal homeownership has been consistently proposed as a possible solution to the wealth gap in the U.S. • Homeownership peaked at 69% in 2004 and has since fallen to 65% (Federal Reserve Bank of St. Louis, 2024). • As of 2023 the top 1% in the U.S. owned 30.2% of the nation’s wealth and the bottom 50% owned 2.5% (U.S. Federal Reserve System, 2024). • Two of the most common variants of U.S housing laws are low-income rental assistance and mortgage intervention programs. | American Dream The national ethos of the U.S. that claims anyone has an equal opportunity to achieve success through hard work. Low-Income Rental Assistance Governmental programs that subsidizes the cost of rent for low-income families. Mortgage Intervention Governmental programs that incentivize homeownership by reducing mortgage rates or tying benefits to mortgage. Neoliberalism A political philosophy that emphasizes deregulation of the free market. |
Research Question & Thesis Statement
Research Question: What factors influence the effectiveness of current U.S. housing laws in decreasing the wealth gap through housing accessibility?
Thesis Statement: U.S. housing laws are ineffective at addressing the wealth gap through housing accessibility. A combination of factors renders U.S. housing laws ineffective and exacerbates the wealth gap, including inefficiency in implementation, exploitation of those laws by the affluent to accumulate wealth, and citizen complacency, which allows the other factors to persist.
Key Findings
Inefficiencies
Low-Income Rental Assistance | Mortgage Intervention |
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U.S. housing policies’ broad parameters lead to inefficient execution and lack of beneficial guidance from the government..
Example: Voucher programs government does the selection.
Relevancy: Rent unaffordability and healthy living environment.
Finding 1: Subsidy without advice leads to wasteful spending.
Finding 2: Paying rent is difficult for many low-income families.
Example: 2008 housing bubble, lax loans led to bankruptcy.
Relevancy: Economic crisis & homeownership stagnation.
Finding 1: Incentives only help existing homeowners.
Finding 2: Lax regulation of easier loans can cause crisis.
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Exploitation
The wealthy are able to exploit and perpetuate housing laws for their own benefit, increasing the value of their own properties.
Low-Income Rental Assistance | Mortgage Intervention |
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Example: Voucher programs lead to excess demand in one area.
Relevancy: Rent unaffordability and wealth gap growth.
Finding 1: Wealthy landlords have regional hegemony.
Finding 2: Excess residents in one area lead to inflated rent.
Example: Mortgage interest deduction reduces tax burdens.
Relevancy: Wealth gap and housing gap growth.
Finding 1: Incentives benefit the wealthy who are homeowners.
Finding 2: Benefits from housing encourages buying more houses.
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Accumulation & Perpetuation
Accumulation | Perpetuation |
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Finding 1: The wealthy can pass down property through family.
Finding 2: Value of houses rapidly increases due to asset inflation.
Relevancy: The wealth gap will only grow wider with time.
Relevancy: The wealth gap can not be closed from the outside.
Finding 2: The rich have immense leverage and presence in gov.
Finding 1: The wealthy’s opinions are weighted more by politicians.
• The benefits housing laws provide amplify over time.
• This leads to a built up advantage that can never be made up.
• The rich have the motive and means to stop housing reform.
• The rich have a near hegemonic control over the political system.
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Complacency
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Policy reform is stifled by a lack of political will from citizens. This apathy towards change stems from ignorance of the severity of inequality and the reality of one’s own social mobility.
Finding 1: Most American citizens underestimate the wealth gap.
Finding 2: Will for reform correlates with perception of social mobility.
Example: When surveyed, citizens overestimated household income.
Relevancy: Housing reform difficulties and citizen participation.
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Vote
Ideologically Influenced Ignorance
The American Dream |
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Finding 1: American Dream boosts belief in possibility of equality.
Finding 2: American Dream inflates our sense of capability.
Finding 3: American Dream props up myths about homeownership.
Relevancy: American Dream has created a false security.
Neoliberalism |
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Finding 1: Neoliberalism fosters an individualistic mindset.
Finding 2: Neoliberalism discourages collective action.
Finding 3: Neoliberalism decreases citizen trust in government.
Relevancy: Neoliberalism primes us to stay weak and disunited.
Widespread ideologies have shaped the way U.S. citizens perceive things.
Conclusion
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Housing Legislation
Citizen Ignorance
General Population
Wealthy
Homeowners
Political
Control
Wealth Equality
Prevents From Aiding
Exploits
Inadequate
Thank You for Listening to This Presentation!
Special Thanks to: Duke University, The Samuel Dubois Cook Center, Cohort 2 Teachers & Interns