In Josh’s defense, yes, meadandale, people like you are part of the problem — only a little bit. The real problem is the lenders and they do deserve to loose big time when housing crashes. If the lenders are willing to give out cheap money, you can’t blame the borrowers for taking it.

If it weren’t for the 100% financing and other exotics, there’s be less demand. Prices would be lower and the growth in housing would be more sustainable rather than the boom and burst we are seeing.

I think that the homeownership rate is now at 69% and the long term sustainable rate is 64%. If we go back to the long term sustainable rate, that means that 10% of the homeowners will revert back to being renters.

You bought in 2002. There’s a good chance that your house will depreciate to that level or below. In that case you won’t be too happy. Think of the opportunity cost of carrying that house for all those years when you could’ve been renting for less. The point is not whether you can make the payments. The point is what else you could’ve done with the money (invest it or enjoy spending it on yourself).