1.2 Million Households Disappear, Putting Downward Pressure on Home Prices and Rents

Zero Hedge ^ | George Washington

[Lorianne]

As I wrote Monday:

In really bad times, people who are evicted from their houses will not rent.

Instead, they will move in with friends or family for some time.

As the Wall Street Journal explained last October:

Driving the change [i.e. large numbers of rental vacancies and lower rents] is the troubled employment market, which is closely tied to rentals. With unemployment at 9.8% — a 26-year high — more would-be renters are doubling up or moving in with family and friends during periods of job loss. Landlords have been particularly battered because unemployment has been higher among workers under 35 years old, who are more likely to rent. Nationally, effective rents have fallen by 2.7% over the past year, to around $972.

As Zack’s Investment Research writes:

A smaller percentage of Americans owned their own homes in the 4th quarter of 2009 than at any time since 2000. In the 4th quarter 67.2% of Americans owned their own home, down from 67.6% in the third quarter and two full percentage points below the peak set in the fourth quarter of 2004.

[Boardwalk]

Hope & Change!

[DontTreadOnMe2009]

Well, since it’s from George Washington I know it must be true!!!

[dragnet2]

You kidding? Drive around any neighborhood and look at all the cars in front of homes......

The article was right on the money....

“more would-be renters are doubling up or moving in with family and friends”

[meanie monster]

Yeah, my 20 yr old son has moved back here after a year on his own.

[BuckyKat]

Our daughter and son-in-law are finishing up respectively their degrees in architectural engineering and agribusiness. They would love to find jobs and move into a home of their own.. or at least one where they’re paying the rent themselves.

Instead it’s looking more and more like they’ll be moving in with us and looking for work from home base. At the rate things are going we may have them awhile.

[dragnet2]

I know...It’s about the same everywhere.

[jerry557]

Almost 1/3rd of Americans between ages 24 and 30 now live with parents or family.

Unemployment is also running high in this age group. A lot of companies have cut back on entry level jobs, and ones that exist are being scooped up by older workers who have been layed off.

[Tammy8]

A lot of companies have cut back on entry level jobs, and ones that exist are being scooped up by older workers who have been layed off.

This is something a lot of people don't seem to realize. Many older experienced workers that have been laid off are taking jobs that they normally wouldn't, which leaves many underemployed and others unemployed.

[Tellurian]

Multiple family households is common for immigrants to this country. I see plenty of examples right on my street. It's a survival tactic when your earning power is subpar.

So in essence, with a dismal economy, we're becoming more like the third world labor pool we're competing with. Survival mode in the socialist utopia.

... And the grand masters of the coming utopia only give lip service to making things better. In reality their gut tells them that all this suffering can't be let go to waste. They keep it festering so they can more easily make moves to consolidate their control. Their hubris tells them that once they have complete control, everything will fall into place, and they'll be praised to no end for creating the perfect society.

Yeah, right. (Sorry for the rant - just thinking out loud).

[Man50D]

Unemployment is also running high in this age group. A lot of companies have cut back on entry level jobs, and ones that exist are being scooped up by older workers who have been layed off.

Actually it's just the opposite. Companies will not higher more experienced workers for entry level jobs as businesses consider these people over qualified and are convinced they will seek employment elsewhere not long after they are hired. The end result is the experienced workers cannot find a job while those with little experience fill the entry level positions.

[screaminsunshine]

I drove by the community college the other day. Parking lot jammed. 80% of them should be out working at some constructive job not in there getting indoctrinated. Too many are going to college for no good reason and wasting money on useless social engineering classes taught by useless teachers.

[mylife]

Maybe Obama is trying to restart the mobile home industry? /s

[applpie]

so how do these socialist elitists think that we can continue to fund their activities if we become a nation of vagabonds?

[hoosierham]

Pooling your resources is an obvious way for any group to survive so this is no surprise.

[hoosierham]

Of course you are correct.

But not every older person has your sense.

[GlockThe Vote]

Most jobs simply don’t pay enough to allow people to live on their own when you tally up student loans taxes etc.

When rush mocks young people on this he comes across as extremely uninformed.

[Eye of Unk]

I have two projects this year, a cheap older large motorhome equipped to cover all my needs for at least six months totally independent, and the other is finding a good deal on an over the road tractor, I have been a diesel mechanic all my life and I want a three axle Peterbilt and a moving van, I want to blend in as a commercial hauler or has just another race car team.

Just in case I lose my home.