We do so by providing an interest deduction for home mortgages and by underwriting housing debt through an explicit taxpayer support for the GSEs, which is reflected in mortgage rates. There are debates about the quantitative effects of these subsidies. But we should not be afraid to ask hard questions.
Most financial advisors would tell you to diversify your asset holdings, yet our housing policies incentivize families to do just the opposite: put your savings in your home. The policies encourage homeownership over other asset classes. The results for many families were devastating. The GSEs were at the center of the housing storm and we have to date not addressed the fundamental reforms required.