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Allodial land is yours and is one of the pillars of a free society. Homesteaded land, for instance, is allodial. The owner receives a "land patent".

This is something I never even heard of. I guess my house and property would qualify as "allodial land"...it is mortgage free and it is homesteaded. I still have to pay property tax, though. So, how does the homesteading and clear title stop me from supporting the government?

I've never understood the appeal of second mortgages to pay for other things. I've never understood people living in houses that they couldn't afford if they were to become unable to work, when that isn't necessary. Most people are totally clueless (or in denial) about the advantages of full title to their property.

Your take that when (and if) housing prices crash, home owning will become concentrated makes sense. Then, you'll have government control over where people live, mini-mansions will become condos, and people will be completely drained by perpetual rent and fees.

I'm just not as sure as you are that housing prices will crash. There's just too much demand. Sane people will do everything they need to (including renting rooms) to keep their houses. Why? If they have one of these low interest rates, they'll never get that god a deal on financing again...giving that up would be insane.

Looks to me like a lot of the housing demand is coming from illegals. My parents live in the Rocky Mountain region and their neighborhood is now almost 50% Hispanic. My own neighborhood in Texas has nearly half Hispanics in the local school system, mostly new within the last few years. With zero debt, they might easily qualify for home loans. I'm not sure whether it is legal for illegals to own property in the US. But they can sure pay rent!

This is something I never even heard of. I guess my house and property would qualify as "allodial land"...it is mortgage free and it is homesteaded. I still have to pay property tax, though.

So, how does the homesteading and clear title stop me from supporting the government?

It doesn't. Income tax, state income tax, gas tax,sales tax, auto registration tax,capital gain tax,etc,etc. still support your government.

If you still have the original land patent you may wish to investigate the possibility that you are not liable for property tax as this would constitute a claim on the land that trumps your ownership.

Do you have the original land patent or was the land homesteaded and then transferred to you? Or was the land homesteaded then sold.

I want to amend this sentence in my response to you. There will be consumers who will be convinced, if housing prices fall, to get into a deal with lower principal and a higer interest rate. Why? The income tax deduction!

Yes the income tax distortion distorts the housing market (according to the WSJ by about 15%) and is one of the primary obstacles to tax reform.

I would point out that even 0% interest rate can be a de facto high interest rate in a deflationary enviroment. Witness the cars that sell with 0 interest but immediately lose half their value upon sale.

Check out my profile for an explaination of Fannie Mae's effect on the housing market.