Housing plays a special role in the social and political dialogue in most societies. It is a major component in creating stable and healthy communities and is often the largest single household expense. Housing can be a sector for the stimulus of the national economy. But housing conditions are often seen to be worse than socially desired, given the national standards of living and societal values. For these reasons, almost all societies intervene in housing markets through an array of policies and subsidies intended to stimulate housing production or consumption by various groups. The article does not cover all housing subsidies, but rather focuses on those related to the financing of the purchase or improvement of owner-occupied houses. Most governments have broad goals for the housing sector – e.g., “to provide every household with a decent house and healthful living environment”. Such a general objective provides little guidance to policymakers, who have to respond to a plethora of societal concerns and pressures related to housing and housing programs.