Rental Homes

In Monday's New York Times, Paul Krugman raises the question whether the United States has gone overboard in promoting home ownership. Krugman points out not only that the bursting of the subprime bubble has also burst the homeownership bubble, but also that homeownership brings risks of excessive leverage (if prices go down some, an equity stake can be totally lost); "stickiness" (making it hard to move when jobs dry up); and the high expense of commuting (when families chase low house prices well beyond where the jobs are).

Krugman got much right, but before we throw homeownership overboard, it's worth pausing a minute to consider both the benefits of homeownership done right and what we need to do to make rental housing a reasonable alternative, both as shelter and as a way to build assets.

Odds and ends from the past week...

TELL US WHAT YOU REALLY THINK: Steve Maviglio, Democratic political operative and aide to Speaker Fabian Nunez, unloads on the Foundations for Taxpayer and Consumer Rights, now called Consumer Watchdog. The group is putting together a ballot initiative on health care. 

EMINENT DOMAIN MEASURES: As the California press corps withers, Capitol Weekly gets stronger. This past week, the newspaper has an excellent account of the back-and-forth over two competing eminent domain measures on the June ballot, Propositions 98 and 99. In brief, backers of Prop 98 (supported by an anti-tax group) are accusing backers of Prop 99 (supported by California cities) of "astro-turfing," the practice of using deceptively-named organizations with no real members.

WOLVES!!! A new development in the wolf wars in Alaska. A judge says the government can continue to shoot wolves from the air, though he invalidated the practice in certain parts of the state. The question of such aerial hunting -- to reduce the wolf population and protect caribou and other species -- goes to voters in the Last Frontier in August.