The COVID-19 pandemic poses problems not only for small businesses, but homeowners and renters as well - especially those with limited incomes. Indeed, according to CNBC, 28 million individuals could possibly end up homeless. For perspective, approximately 10 million lost their homes in the Great Recession.
Alas, when it comes to maintaining financial flows, rental costs are similar to the monthly obligations of mortgage payments. Both can be substantial enough to derail personal autonomy for renters and homeowners alike, if sources of steady employment are jeopardized. Given this reality, when income streams are disrupted for any reason, it's not always easy to regain one's footing afterward.
Incremental forms of ownership could do much to lower the risks of economic uncertainty for all concerned. And should employment opportunities prove unreliable, flexible ownership options could allow many individuals to gradually rebuild their lives without the undue risks so often posed by the costs of housing. By purchasing the most basic elements of living needs first, when income streams are sufficient to do so, ownership can accrue incrementally on terms that don't require debt. Fortunately, "pay as you go" ownership could lessen the monthly obligations faced by those with limited income and/or unstable employment sources. Once individuals are able to establish basic elements of ownership, temporary disruptions in wages would be less likely to derail the whole process.
Also, from a macroeconomic standpoint, flexible ownership arrangements could ultimately lead to simpler roles for monetary and fiscal policy. By reducing the contractual debt burdens of housing, monetary and fiscal policy would have less incentive for overreach. Greater flexibility for citizens could mean greater flexibility in policy responses. After all, since private enterprise in the U.S. has considerable flexibility to hire and fire at will, is it not logical to offer citizens that same degree of flexibility in markets for housing?
Given the wide variance in income levels today, incremental ownership could prove an advantageous response to economic uncertainty. Many citizens could thrive in environments where simpler living arrangements are possible - citizens who otherwise tend to struggle with what is presently required. Already, companies are starting to experiment around the world with a wide array of building materials and modular components. Hopefully, there will also be communities in the U.S. in the years to come, where simpler ownership options are welcomed and encouraged.
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