In retrospect, it’s clear that unsustainable lending practices built up the housing bubble that crashed in 2007. Before that bubble popped, Americans had achieved the highest historical homeownership rate since those numbers were first tallied. It’s not surprising to find that those numbers have since dropped, but what is surprising is how far they’ve dropped in recent years.
That’s because America’s homeownership rate didn’t stop falling once it reached pre-bubble levels. Zerohedge reports that the percentage of Americans that own their home has now reached 63.4%. That is the lowest rate we’ve seen since 1967. Predictably, rental homes are starting to get pretty crowded. Vacancies for rentals have fallen to 6.8%, the lowest rate since 1986. As a result, the cost of rent is skyrocketing across the United States. In some major cities, average rent has increased 20% in just the past year.
What this means is that the crash of 2007/08, wasn’t just a bump in the road. Despite what many of our politicians and media personalities would have us believe, we’re not on the road to recovery. The last recession was just the first undeniable sign that our economy is now on a long-term downward trend. And more importantly, our middle class, which was once the envy of the world, is taking the brunt of this decline.
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Contributed by Joshua Krause of The Daily Sheeple.
Joshua Krause is a reporter, writer and researcher at The Daily Sheeple. He was born and raised in the Bay Area and is a freelance writer and author. You can follow Joshua’s reports at Facebook or on his personal Twitter. Joshua’s website is Strange Danger .