The Wall Street Journal today reports that “housing wealth flowed to the affluent in the last decade.” That is supposed to be news.
Housing wealth flowing is a strange way to describe home prices rising. They generally rise every year, That is not news.
And who owns homes? The affluent or the poor. By definition, the affluent own houses. The poor do not because they cannot afford to own a home. The affluent had to be affluent to buy a home. And the normal annual rise in property values makes them more affluent. Duh.
The Journal headline implies there are times when housing wealth flows to the poor. That is total rubbish. I do not believe that ever happened in US history.
It is not news that almost all the people who own houses are affluent.
It is not news that homes generally go up in value and that makes their affluent owners more affluent.
Bottom line: if you want to become affluent then more affluent, buy a home and move up to a more expensive one when you can.
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