Dr. Housing Bubble 09/12/2014

[Crewleader]

Examining the net worth of renters and homeowners: Most Americans stash their wealth in home equity. Many housing markets affordable, just not the area you are looking at.

The nation is undergoing a radical transformation where renting is currently outpacing homeownership. The reasons are complex including the multi-year investor orgy into single family homes. Since the crisis hit 7,000,000+ homes have been lost due to the long and drawn out process of foreclosure. No need to worry since investors picked up a solid portion of the slack here. Americans are notoriously bad savers and addicted to debt. For most, housing is a forced savings account. This is why when net worth data is pushed out we find that homeowners clearly outperform renters. It is important however to keep in mind most of the net worth is tied up in equity. That is, you will need to tap your home somehow to get the money flowing out. This is how we end up with dumpster diving baby boomers scrounging the local Whole Foods for goodies while living in a million dollar crap shack. The hipster kids don’t seem to mind since they are now living with mom and dad, unable to afford the high rents in places like California. Yet housing overall does end up being a big forced savings account and that is why the net worth figures between homeowners and renters are not even close. If anything, it adds more evidence to the feudal landlord nation we are witnessing.

Net worth – homeowners and renters

http://www.doctorhousingbubble.com/renter-homeowner-net-worth-comparison/

[Demeter]

1. How can you save at $10/hour?

When you are at or below the poverty level in income--with or without the non-cash subsidies, there's nothing to save. That's the DEFINITION of poverty. With 41% of the nation falling into that category, and more daily, it's time to stop blaming the victims.