06/27/2023
If Independence Day never happened, we would all be renting in 2023. 🇺🇸
Here's why! In earlier drafts of the Declaration of Independence, Thomas Jefferson actually wrote the words life, liberty, and property instead of life, liberty, and the pursuit of happiness. In other words, he viewed owning property as being synonymous with pursuing happiness.
He envisioned a future “middle class” of homeowners in America a full century before the economic concept of a middle class even existed. In 1776, you were either born into an elite rich family...or you were poor. There was not really anything in-between! Jefferson wanted to change that, and the right to own property was an essential ingredient in the American recipe.
The founders believed in a simple and revolutionary idea: people are meant to be free. And property rights were at the center of independence.
James Madison would later write, “The government is instituted to protect property.”
The 5th Amendment of the Constitution enshrined property rights. “No person shall be….nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.”
You see, homeownership was not common in the 1700s, as mortgages and property ownership were accessed by elites and royalty.
The new country birthed a massive opportunity.
In 1803, President Thomas Jefferson approved the Louisiana Purchase - and doubled the size of the United States. Innovations and expansions by banks created more opportunity and people started to purchase property.
In 1862, President Abraham Lincoln signed the Homestead Act which gave opportunity for Americans to own 160-acre plots of public land for the price of a small fee.
FUN FACT: The Homestead Act applied all the way until 1986 in Alaska. You could claim land as your own!
By the 1890’s, 50% of Americans owned their home.
Coming back from World War II, the American economy roared and ownership rose in the 1950-60’s and beyond. Shortly after 9/11, over 70% of Americans owned a home.
From uncommon to common. From ideal to reality.
Today, 65.8% of Americans are homeowners.
Last year, 5.95 million homes were purchased in the United States.
This is AMAZING.
Independence is not a dusty idea from old guys wearing wigs or Red, White, and Blue parades.
Independence is what it means to be American.
And homeownership, the ability to own property, is the fruit of independence.
Without Independence Day, without property rights, we would not enjoy American home ownership.
- Dylan
