Wall Street’s latest real estate grab has ballooned to roughly $60 billion, representing hundreds of thousands of properties. In some communities, it has fundamentally altered housing ecosystems in ways we’re only now beginning to understand, fueling a housing recovery without a homeowner recovery. “That’s the big downside,” says Daniel Immergluck, a professor of urban studies at Georgia State University. “During one of the greatest recoveries of land value in the history of the country, from 2010 and 2011 at the bottom of the crisis to now, we’ve seen huge gains in property values, especially in suburbs, and instead of that accruing to many moderate-income and middle-income homeowners, many of whom were pushed out of the homeownership market during the crisis, that land value has accrued to these big companies and their shareholders.”
Before 2010, institutional landlords didn’t exist in the single-family-rental market; now there are 25 to 30 of them, according to Amherst Capital, a real estate investment firm. From 2007 to 2011, 4.7 million households lost homes to foreclosure, and a million more to short sale. Private-equity firms developed new ways to secure credit, enabling them to leverage their equity and acquire an astonishing number of homes.
The Great Wall Street Housing Grab
Hundreds of thousands of single-family homes are now in the hands of giant companies — squeezing renters for revenue and putting the American dream even further out of reach.
Francesca Mari, NYTIMES
US milliennials (roughly 22-37 yrs of age) are facing heavy debt and low pay which prevents or delays them from buying homes (or other large purchases) and starting families compared to their parents, are other countries experiencing the same or similar economic issues with this age group? from NoStupidQuestions
“In the UK almost identical situation.
I’m 43 I own my house and pay £600 pcm mortgage.
My colleague is 34 rents a house on the same street. Pays £900 pcm rent.
He’s fucked. Totally fucked.”
“In Finland, not as bad, but trending towards that. Pay is dragging behind the increasing cost of living, because we need to remain competitive in EU internal and global markets, which apparently can only be done with wages. Not by for example, making Finland more friendly to startups and small and medium sized companies, and entrepreneurs.”
The New Red Scare
“The winter round of the presidential race goes to Bernie Sanders, not so much for winning the most votes from Democrats as for coining the key word, the big theme for 2020, which is: billionaires! Not just the billionaires on the ballot and billionaires backstage, it’s billionaire-ism coming to be the argument of this election in a country at odds more and more about money. We’re used to anger, right and left, but suddenly there’s alarm in the air – at MSNBC, the Democrats’ TV network, the bold march of Bernie’s anti-billionaire army reminded Hardball‘s Chris Matthews of the Fall of France to Hitler in 1940. It’s scary, and there’s a pick of scarecrows in this race: the Plutocrat; the Democratic Socialist, and the President.
This was wake-up week among the Democrats nominating a presidential candidate. Some woke up cheering that Bernie Sanders looks like the choice of the people. Some woke up screaming in horror that the rebellion against the Clinton era is real, that their party has been dying for four years, that the end is near. The sound of battle has gone raw, with survival at stake, not just egos.”
Radio Open Source
Lancaster, Ohio, the home of the Fortune 500 company Anchor Hocking, was once a bustling center of industry and employment. At its peak following World War II, Lancaster’s hometown company was the world’s largest maker of glassware and employed more than 5,000 town residents.
Though Anchor Hocking remains in Lancaster today, it is a shell of its former self, and the once thriving town is beset by underemployment and drug abuse. Lancaster native Brian Alexander chronicles the rise and fall of his hometown in his new book, Glass House.
“People are genuinely struggling,” he tells Fresh Air’s Dave Davies. “The economy of the town is struggling, not because there’s high unemployment, [but] because the employment that there is all minimum wage, or even lower than minimum wage.”
Fresh Air, February 6, 2017. NPR
In California, more than 100,000 people sleep on the streets. The tent cities in Los Angeles’s skid row have distinct neighborhoods, and across from a homelessness center, the bodies on the sidewalk are four rows deep. Trailers line the streets near Google’s Mountain View headquarters, and in Modesto, a woman sleeping in a cardboard box was crushed to death by a front loader that came to clear her encampment away.
Francesca Mari, NY Times
Fighting for Housing in America
By Conor Dougherty
To better understand how rents and affordability have changed over time, Apartment List analyzed Census data from 1960 – 2014. We find that inflation-adjusted rents have risen by 64%, but real household incomes only increased by 18%. The situation was particularly challenging from 2000 – 2010: household incomes actually fell by 7%, while rents rose by 12%. As a result, the share of cost-burdened renters nationwide more than doubled, from 24% in 1960 to 49% in 2014.
Andrew Woo, How Have Rents Changed Since 1960?
Listed at $1,005/month, this studio apartment is located at 1431 Humboldt St. South.
In the apartment, you can expect a dishwasher. Amenities offered in the building include a resident lounge and on-site laundry. Pet owners, take heed: This property is both dog-friendly and cat-friendly. There’s no leasing fee required for this rental.
Walk Score indicates that the surrounding area is a “walker’s paradise,” is convenient for biking and offers many nearby public transportation options.
If you would like to help out, you can donate here:
Colorado Coalition for the Homeless
“Rent is obscene here”: The issues forcing people in Seattle onto the street
Anderson Cooper visits a tent city in the Seattle area and hears from some of America’s more than 500,000 homeless people
Tricia Wood: I used to be one of those people that thought that if anyone was homeless they just needed to go get a job. That would solve their homeless problems.
Anderson Cooper: How would you answer that question now? Why can’t they just get a job?
Tricia Wood: Oh my goodness. Maybe they have a job.
Josiah Wood has a full-time job. He gets up before dawn and takes mass transit to work as a maintenance supervisor at the Hard Rock Café downtown. Though he makes $19.50 an hour, the rent for an average one-bedroom apartment in Seattle would eat up half his salary. He and Tricia say they’ve been saving up money so they can afford a security deposit and monthly rent.
Anderson Cooper: How long do you think you’ll keep living in the tent city?
Tricia Wood: I would hope we are out of here by winter.
The Devil in Steve Bannon
The celebrated filmmaker Errol Morris has a new documentary — and candid remarks — about Donald Trump’s dyspeptic strategist.
Do you think, a couple of years from now, Bannon’s going to be this very curious footnote, this sort of one-off? Or do you think we’re going to be reckoning with what he’s peddling and what he represents for a good, long while?
I have to distinguish what I hope for versus what I really think will happen. I hope all of this is a very bad memory soon: Trump, Bannon, national populism, etc. In one respect, I do agree with Bannon. And I told him so. I grew up in the ’50s. My mother was an elementary-school teacher. My father died when I was 2, and my mother brought up my brother and myself. She took care of everybody, having practically no money, no insurance money from my father’s death.
And I often think, could she have done that today? And the answer is no. I don’t think she could have. There is greater and greater inequality, economic inequality, income and otherwise, in the United States. And I think it’s a very, very bad thing. And I think Bannon is right — that it will have terrible consequences in the long run.
Here’s one take:
“Stephen, you’ve been proven right on housing, and I think you’re about to be proven even more right. The most important driver of home prices is supply and demand. And right now, there is a chronic undersupply of homes in America.”
Census Bureau data shows an average of 1.5 million homes were built each year since 1959. Yet since 2009, just 900,000 homes have been built per year. In fact, fewer homes were built in the past decade than in any decade since the ‘50s!
We have a serious housing shortage in America today. It would take less than six months to sell every existing home on the market…
The Biggest Housing Boom In History Has Just Begun
Stephen McBride, Forbes
* 2.2 million working people are paid the federal minimum wage of $7.25 an hour or less.
* Approximately another 23 million people are paid between $7.25 and $11 an hour.
* Nearly half (42.4 percent) of working Americans make less than $15 per hour.
The productivity of American workers has roughly doubled since 1968 (the peak of the minimum wage in inflation-adjusted dollars), but workers making the minimum wage today make 25 percent less than they did in 1968, once adjusted to today’s dollars. Even though unemployment has dropped precipitously, sitting well below 5 percent for the last three years, it has not been until recently that wage increases for workers in lower-paying occupations have occurred. And much of that growth at the low end of the distribution has come from action on the minimum wage at not the federal level, but the state and local level.
Making the Economic Case for a $15 Minimum Wage
THE CENTURY FOUNDATION
A new study finds that more than 60% of personal bankruptcies in the United States in 2007 were caused by health-care costs associated with a major illness. That’s a 50% increase in the number of bankruptcies blamed on medical expenses since a similar study in 2001.
In an article published in the August 2009 issue of the American Journal of Medicine, the results of the first-ever national random-sample survey of bankruptcy filers shows that illnesses and medical bills contribute to a large and increasing share of bankruptcies.
Consumer Affairs, Truman Lewis