Quote:
Originally Posted by Scucca  Risk taking is an integral part of rational economic man. The important aspect is that there will always be an inefficiently high number risking home ownership because of the fear of old age poverty. No level of education will eliminate those problems. We'd instead need to see changes to the welfare state. |
The inefficiency is more likely to be related to factors other than fear of old age poverty. A house (to some) is generally seen as a safer long-term investment that also gives one the benefit of living in it (stocks seem "riskier" to most people). It also provides a number of non-pecuniary benefits to familiies. The level of home ownership is also very much determined by the layout of where one lives (New York City, Paris, Berlin, London, vs. rural areas of the United State's South, the Midwest, and others).