Homebuilding also faces another obstacle with the effects of price-hiking. Local zoning and environmental regulations have restricted the availability of land on which new residential units can be built. So while housing demands are white hot, the green lobby has cooled down new supplies.
None of this is to argue that low mortgage rates haven't been a plus in the housing picture. Of course they have. But the imbalance between excess demand over limited supply, resulting from tax factors and land-use restrictions, has made home buying even more profitable in recent years than has been the case in the past.
Which leads to a final thought: Why not apply the same tax laws that have benefited homeowners to stock market investors and homebuyers? If this were to come about, even more wealth would be created in America, leading to even more new business and job creation.
Tax reform to create a level playing field could boost our economy's potential to grow beyond almost anyone's wildest dreams. Homeownership, stock ownership and small business ownership should be taxed at the same minimal rates, as they are all key components of economic growth and wealth creation.