
Homeownership is an important engine of economic growth and provides a path to prosperity for low- and middle-income families. Policies that simply aim to make homeownership more accessible, though, overlook essential safeguards for responsible homeownership. The most recent housing crisis provides ample evidence of this flawed approach, and is the source of enduring pessimism about the housing market. Policymakers should reform housing policy to reduce barriers to responsible homeownership and upward mobility. First, the mortgage-interest deduction should be fixed. The current mortgage-interest deduction disproportionately benefits…