Former congressman Rick Lazio (R-NY) pointed out that housing plays a vital part as a contributor to the national economy, with investment alone representing 4% of the GDP. That, he added, did not include utilities, construction and other major contributors of revenue.

From that starting point, the conversation turned to analyzing a national housing policy, and that's when things got lively. "If a housing policy is to make strides, it must emphasize homeownership," stated New Orleans Mayor Marc Morial, adding that owning--as opposed to renting--would combat NIMBY-ism. He stated that a national housing policy should shoot for 100% homeownership.

"In New Orleans," he added," "people are spending $600, $700 or even $800 per month on rental housing that is substandard. That's enough for a monthly mortgage. With down-payment assistance, they can make an investment in their future."

Most of the other panelists resisted the suggestion. Edward Gramlich of the US Federal Reserve Board countered, "we already have substantial subsidies for ownership."

And not surprisingly, J. Ronald Terwilliger, national managing partner for Trammell Crow Residential, staunchly supported rental housing, pointing out that homeownership might simply not be feasible in certain cases. "When housing values are rising at 3% annually," he argued, "it can take up to five years to break even. If a household is not financially stable, renting allows a very attractive alternative."

"Homeownership does not work for everyone," added Lazio, who is now president and CEO of the Financial Services Forum. "It's crazy to think we'll reach 100% homeownership. People need to have options."

Instead, he pointed to the 100,000 units of affordable housing the national inventory loses every year, due to such events as "owners moving out of their Federal obligations." Rather than create programs that would increase homeownership, "we need to increase the production of multifamily units."