With the right mortgage, home ownership builds wealth

The Great Recession, characterized by devastating mortgage defaults, has challenged the conventional wisdom that home ownership is a good investment, particularly for those with low and moderate incomes. But the conventional wisdom on the benefits of owning vs. renting still holds when done right, according to a newly published study led by the Brown School’s Center for Social Development and Michal Grinstein-Weiss, PhD. Homeowners with low and moderate incomes who participated in this study conducted between 2005-08 achieved higher net worth than their counterparts who rent. This research provides new and important evidence for the current policy debate on low-income homeownership programs,” Grinstein-Weiss says.