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into account the leverage of 70 percent or higher mortgage and the forced savings of paying down an amortizing mortgage. Nevertheless, with only gradual appreciation to look forward to, and the high transac- tion costs of purchasing and selling a home taken into cons ideration, home buying as a way to build wealth makes sense only for those who plan to stay in place for ten years or more. Few in generation vwiV be able to do this for many years; instead of necessity, they will be moving from place to place as they build the foundations of their careers. Modest price increases in the years ahead would seem to be good news for people look- ing to buy their first home. The problem is the location of those homes that have lost the most value: it is those on the outer suburban edges and in certain hard-hit inner- city neighborhoods that have become the most affordable. First-time homebuyersvviLL find themselves once again forced to 'drive until they quaLify,' leaving behind the com- munities in which they work in order to obtain mortgage. The Future of Rental Housing The rental vacancy note in the United States was 8 percent at the end of 2009, the high- est level since 1980. At the same time, rents fell 3, percent. These conditions are pro- jected to continue through 2010 and into 2011 as units started in 2007 and 2008 come