HOUSING MARKET HAS FALLEN … AND IT CAN’T GET UP
One of our favorite scenes from the 1988 Eddie Murphy/ John Landis comedy classic Coming To America involves “Stu” – a tenant at the ghetto-fabulous Queens apartment complex that serves as a backdrop for some of the movie’s side-splitting hilarity. Evidently quite delinquent in his rent payments, Stu attempts to evade this issue by falling down the stairs. Repeatedly.
His landlord’s reaction to this tactic is pure comedy gold, people … pure comedy gold.
We were reminded of Stu’s plight this week when we stumbled upon a post over at Zero Hedge addressing the current status of the American Dream – namely plunging homeownership rates and soaring rents (which when you stop and think about it is more like an American nightmare).
According to the latest data, America’s homeownership rate during the first quarter of 2014 stood at 64.8 percent – its lowest level in 19 years.
Wanna view that abysmal data in chart form? Of course not – it looks terrible. And is another reminder of life in the “New Normal.”
But it’s something our country needs to get a grip on sooner rather than later …
(Click to enlarge)
(Chart via Zero Hedge)
Yikes …
We’ve said it before and we’ll say it again … “the center cannot hold.” America’s middle class is getting gang raped by government-funded corporate cronyism, welfare statism and bureaucratic expansion – steadily eroding its ability to support the broader economy.
And not only are normal Americans increasingly unable to buy homes, they are increasingly tapped out when it comes to other purchases too.
Ready for more troubling news? The growing number of Americans who have been forced into the rental market are shelling out record prices – with most of that money going to government-backed Wall Street fat cats who snatched up properties with loans and liquidity made available by the Federal Reserve’s still-churning printing presses.
“Americans have to live somewhere,” Zero Hedge notes. “That somewhere is as renters of Wall Street and other landlords. As the next chart shows, the median asking rent has soared to fresh records and hitting an all time high of $766 as of the first quarter.”
Wanna see what that looks like? Again, of course you don’t.
But …
(Click to enlarge)
(Chart via Zero Hedge)
“Oh say does that star-spangled banner yet wave …”
28 comments
Any profitability I see monthly is absorbed by South Carolina’s criminal tax codes for non owner occupied properties. If you like that break you got on your property tax starting back in 2007, you can thank people like me that thought it was a good idea to get into the “investment” game.
I always enjoy a self promoter who declares himself
“Hard Working.”
I love a dickface that doesn’t know me that likes to make assumptions.
What kind of arrogant ass comes on here and declares HIMSELF “hardworking” then baselessly denounces others for not being so?
Oh I have my answer
You’re the arrogant ass for throwing the first punch.
I didnt “throw” a punch.I was merely making a humorous observation.
I presume most people,rightly or wrongly,regard themselves as “Hradworking,” yet dont see the need to designate themselves as such.
Where was the humor?
Pompous asses rarely find humor in their own pomposity.
Pompous asses normally purport to be humorous when they’re taking a stab at humor. Keep laughing at your own jokes.
I’ve always thought that as long as I find my jokes funny, I’m satisfied.
Well, glad you could find the time today to post as much as you have…Phew!! We feel really blessed you can find time for us! Thanks, bro!
Now THAT is funny.
We have 33 rental units. I don’t feel the same way that you do about it. We make plenty of money off of the units, even with taxes and zone 1 insurance rates. I think the insurance rates are criminal, not the tax rates.
Not sure what sort of “units” you have. I have houses, both within a few miles of downtown Columbia, one about 4 blocks from Nikki’s current address. I get pummeled.
5 single family homes and 18 townhomes (apt. bldgs) within 1 mile of the ocean. Most are ocean view all are year round rentals. The insurance is the killer here.
Hey that’s great, I miss living within walking distance of the beach. I lived on Perrin Drive for a few years in the early 90s. I’ve considered going back to work for WPDE, but I don’t like what MB has morphed into. And no, I don’t envy that insurance premium!
Young people saw the pipe dream of the housing bubble turn into a nightmare. It’s natural that they would be in no hurry to buy a house. They are a generation who doesn’t fall for the standard realtor guff. They are also a generation who wants to live close to the urban core rather than in far-flung exurbs. All these things lead to higher rates of renting than buying.
I see it as a positive change in many ways. I’ve rented apartments in a big city and owned a house. There are benefits to both ways of life.
You’ll tell yourself anything to keep from admitting what a F*#k-up your lord-god Obama is…
Kinda like: “If you like your coverage you can keep it…and it will cost less, too”….
We can always count on Big T for an uplifting comment that adds substance to the conversation.
Funny how the 64.8 homeownership rate (lowest in 19 years) mirrors the less than 65% labor participation rate , lowest in 50 years.
Socialist Obama passes out free housing( Section 8),free food,free phones and free insurance to those that will not work and illegals.Why people are renting at a record rate.
Deficient, over-reaching writers have a penchant for so convoluting their lead (or lede as FITS tries to piously snob it)…that you quit reading before getting anywhere near their point…
See Above….
Wait, you can read? Since when?
this week a girl pulled up to the curb in front of a rental that I own. She asked if it was for sale. She goes on to tell me that her 2 br 2 ba ranch which she purchased in ‘o6 is too small for her growing family. She paid 138k and everything in the neighborhood has 3br ‘s and is selling for less than 100k. She is freaking out because it will never sell and she can’t walk out on the mortgage because SHE IS A FUCKING BANKER!!! Ha ha ha ha ha.
Hey Will! Take a Pill!
Pining for the glory days will bring back the same catastrophes too. Part of the reason for that all time high was people that had no business owning homes. All the defaults that finally caught up to people when they realized they couldn’t eat beans and weenies for decades, when they realized they weren’t going to get raises, when the AC conked out and they had to buy a new one ( or even a hot water heater) or replace the roof. Now there are news reports of the government trying to force lenders to loan to people that have no business owning homes, again. Pain must be pretty damned addictive for some people.
This is very yawn-esk. That is the BIGGEST representation of 10 percentages ponits of a graph I’ve ever seen depicted. Clearly to make the swing seem bigger than it actually was. Secondly, rents appear to have gone up roughly 5–6% per year with no huge spike in the last 5 years. Again – meh.
Thank you! I was about to bring that up, too.
Obama’s America is realizing a diminishing middle class and expanding welfare class. This is not happening by accident. I guess all of us will just be borrowing money from each other.