Obama Announces Re-election Bid

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I believe home ownership is a positive in that it encourages people to have roots. I believe people take pride in what they own vs what is just a temporary place to sleep. Areas with higher home ownership vs renters tend to benefit from better maintenance and lower crime. That results (over the long term) in higher property values. Desireable businesses tend to move into areas with well kept homes and low crime (which also tend to have higher levels of income) bringing jobs. Beyond that, home owners spend money on their houses and property. That is more money that flows into local businesses.

While an elimination of the deduction wouldn't result in every single family choosing to rent it would result in a larger number of renters. Some would look at the simple math and realize a home is no longer a strong asset in which to leave their money. Some would simply be unable to afford a home if they couldn't deduct it from their taxes. People choosing to rent over own would reduce the value of homes which would make them even less desireable to own. At some point only those who are absolutely hooked on the idea of ownership would continue to hold their properties.