Editorials

It has long been realized that one of the things that defines the American middle class and keeps it productive is that so many middle-class Americans own their own home. This is not just a property issue. Nor is it just a symbol of achievement.

More than anything, owning one's home provides a sense of security, a feeling of belonging and being an integral part of the group that is the essence of the nation. Owning one's home means achieving the American dream.

This is why stories of people losing their homes resonate so forcefully with the middle class. And why recent information from the Associated Press should not be ignored.

According to an AP analysis of new census data, since 1990 the gap between income and the price of homes has grown to the point that in most states paying for a home is eating up more than 30 percent of a family's income. Thirty percent has always been the magic figure — if your home costs more than that, you can't afford it.

Put simply, while increases in income roughly kept pace with inflation over the last 15 years, the median home value has more than doubled. This may have been good news for people who bought early in the boom, but people who bought later are saddled with more than they can afford. Even with the current price dip, homes today cost more than most new buyers can afford.

The result: Foreclosures and a slumping real-estate market.

Although Alabama is one of a handful of states where the average homeowner is spending less than 30 percent of their income on housing, we should not be complacent. In places — especially our cities and resort areas — the slumping housing market is disrupting the economy.

While Alabama did not see the prices of new houses rise as rapidly as those in other states, even our homes are beyond the reach of many citizens because Alabama incomes remain below the national average.

We hope that as the housing market corrects itself, home builders will take a hard look at what they built during the boom and cannot sell today. We hope they decide now is the time to build and market more affordable housing, what were once called "starter homes," which will give potential homeowners a realistic chance at the American dream. This would be good for the economy, good for the nation and good for the home builder.