The American dream: 250 years of homeownership

The views expressed by contributors are their own and not the view of The Hill

As America marks its 250th anniversary, one idea has done as much as any document, institution, or moment to shape the nation: the idea of home.

Since our founding, homeownership has been central to the American promise. This did not happen by accident: The American housing market is one of the most deliberately constructed systems in the world, built layer by layer through policies designed to expand opportunity, ownership, and prosperity.

The first layer was access to land. As John Adams put it, “Property must be secured, or liberty cannot exist.”

From the Land Ordinance of 1785 to the Homestead Act, early American policymakers sought to expand ownership and give citizens a stake in the nation’s future. These policies helped push settlement westward and allowed new Americans to acquire land and build wealth in ways that were rare elsewhere in the world.

These policies were imperfect and often excluded many groups, but they established a powerful principle: Ownership creates opportunity.

The second layer was financing. President Franklin D. Roosevelt famously observed, “A nation of homeowners is unconquerable.”

During the Great Depression, Congress created the Federal Housing Administration, transforming housing finance by supporting lower down payments and longer loan terms. The result was the rise and standardization of the 30-year fixed-rate mortgage — a tool that made homeownership attainable for millions and remains the envy of the world.

The creation of Fannie Mae, Freddie Mac, and the VA Home Loan program expanded access to mortgage credit and helped fuel the growth of the American middle class on an unprecedented scale.

The Department of Veterans Affairs has guaranteed nearly 30 million home loans since its creation in 1944 by the GI Bill. Fannie Mae and Freddie Mac have supported well over 100 million mortgage transactions.

The third layer was fairness. For much of our history, discriminatory practices denied many Americans access to housing opportunities. Among those pushing for change were African American World War II veterans who returned home after serving their country, only to face discrimination in the housing market.

The Fair Housing Act of 1968 banned housing discrimination and marked a turning point. One of its champions was Sen. Edward Brooke (R-Mass.), a decorated World War II veteran who became the first African American elected to the U.S. Senate by popular vote.

Despite his military service and distinguished public career, Brooke had personally experienced housing discrimination. Along with later reforms such as the Community Reinvestment Act, which sought to address the legacy of redlining, these efforts helped expand access to homeownership and the opportunities it creates.

The fourth layer was stability. In recent decades, policymakers have focused on protecting homeowners through stronger lending standards, consumer protections, and strengthening programs such as the National Flood Insurance Program.

Together, these efforts brought confidence in the housing market and helped families protect one of their most important investments.

Taken together, these four layers—access, financing, fairness, and stability—created something remarkable: a housing system that has enabled generations of Americans to build wealth, strengthen communities, and invest in their future.

The results are profound. Homeowners have nearly 40 times the net worth of renters. In the last decade, the typical homeowner has accumulated more than $190,000 in wealth due to price appreciation alone.

But the benefits extend far beyond individual households. Real estate also accounts for nearly one-fifth of U.S. GDP, and every home sale generates economic activity that supports roughly two jobs.

In 2025, state and local governments collected more than $826 billion in property taxes — 38 percent of their total revenue — helping fund schools, infrastructure, public safety, and essential services. Homeownership did more than build wealth. It helped build America.

The next era in our homeownership story is affordability. Today, housing supply challenges threaten to place homeownership further out of reach for many families. Meeting those challenges requires the same commitment to good policy that built the system in the first place.

That means preserving pathways to ownership, removing regulatory barriers to housing production, and modernizing policies that no longer reflect today’s market realities. It means preserving and strengthening tax incentives that encourage homeownership, including modernizing the tax exclusion on the sale of a primary residence and preserving the mortgage interest deduction.

And it means advancing solutions such as the bipartisan 21st Century ROAD to Housing Act, which comprises nearly 50 pieces of legislation that together modernize federal housing programs, reduce regulatory barriers, and leverage private capital to build more homes.

Americans continue to believe deeply in the dream of homeownership. Our recent national survey found that 85 percent of Americans consider homeownership part of the American Dream, including 82 percent of adults under age 35.

The Realtor Code of Ethics begins with a simple phrase: “Under all is the Land.” It is a reminder that homeownership represents more than property. It represents opportunity, stability, and community.

For 250 years, America has expanded the promise of homeownership by building on the foundation laid by each generation before it. The challenge for the next 250 years is not whether to continue that work, but how.

Because when more Americans have a stake in a home, they have a stake in the future of the nation itself.

Shannon McGahn is chief advocacy officer and executive vice president of the National Association of Realtors.