Mike Kinsley has been asking tough questions of America's politicians and policy makers for years. In a brilliant essay at Politico, he asks why we should want home prices, as opposed to virtually every other commodity, to rise? It is a provocative question and, as a homeowner, I am not sure I agree with his conclusion, but I am sure in light of his essay that some of my reasons are selfish reasons.
That said, you can't underestimate the social value of encouraging homeownership. People whose roots in a community are more solid and of greater duration are much more likely to contribute to the well-being of that community. In a society as fast-paced as our own, economically structured arouond a system that is inherently risky, and risky by design, stability is a good thing, and homeownership, with the prospect of rising home values, imparts that stability.