Maryland Governor Wes Moore has been vocal about the importance of homeownership, emphasizing that housing represents more than just a shelter. He sees it as a long-term investment that gives parents stability and an asset they can leave to subsequent generations. Next to retirement accounts, housing is the second-most-valuable asset for most Americans. Moore’s observations illustrate the greater economic hurdles that future homebuyers are up against now.
Moore about a childhood spent in public housing, experiences that galvanized him to fight for fair investment in education and housing. When he was eight years old, his mother considered sending him to military academy to shape up his misbehavior. Ever-increasing financial pressures, primarily the rising cost of tuition, forced the decision to wait until he was 13. His time at military school in Pennsylvania proved transformational, despite his initial resistance, running away five times within the first four days. Even Moore, who recently recycled testimony on behalf of new students, attests to the school’s impact. It saved my life.
This personal story aligns with Moore’s larger argument against the idea of housing as an investment.
“It’s not just shelter. It’s security; it’s an investment. It’s a chance you can tap into something if an emergency happens. It’s a chance that you now have an asset that you can hold onto, and you can pass off to future generations.” – Wes Moore
The economic terrain facing new homebuyers poses big challenges. Since 1980, the cost of a median home has outstripped growth in median household incomes, locking millions out of the market. This problem is most severe for young adults and minorities. In 2023, the Black homeownership rate experienced the biggest annual increase of any racial group. While this is an improvement, it remains abysmal at 44.7%—27 percentage points lower than the white homeownership rate of 72.4%. Moreover, the Black homeownership rate has not surpassed 50% in more than a decade.
The impacts of the high cost of housing are clear to everyone. By 2022, the share of cost-burdened renters hit a new record high. This increase added to the burdens for people trying to transition from a rental unit to homeownership. All of this is made worse by the current climate of high interest rates and skyrocketing home prices. As a result, nearly one third of young Marylanders are considering moving out of state because of the lack of affordable housing.
Homeownership for younger adults has dropped off a cliff. The rate for people between the ages of 35 and 44 has fallen by over 10% since 45 years ago. This trend is particularly worrying for long-term financial stability, as home equity has become an essential part of many people’s retirement plans.
“When you have a house, when the house appreciates, you’re going to earn home equity.” – Jun Zhu
Governor Moore knows that housing is essential, not just for a roof over one’s head today, but for building wealth and prosperity tomorrow. He’s a true believer that it offers the best retirement security, which adds to the sense of urgency to tackle this housing affordability issue.