Doctor Housing Bubble
MAY 2, 2018
This is part and parcel of a larger statistical discussion. Those vaunted, historically amazing unemployment numbers do not include the truly disenfranchised, those who have completely given up looking for work.
And they don’t tend to show up in other statistics except in instances like these. The extremes are growing. While the 1% has reaped the vast majority of the Fed’s QE recovery, those faring the worst are getting less help than ever.
There is a homelessness crisis in Los Angeles County. The homeless population has surged by 75% in the last six years all the while home prices are back to peak levels.
Yet the home ownership rate still hovers near generational lows. California has seen massive growth in rental household formation. Surveys continue to find that Millennials prefer different living styles than their baby boomer parents.
Forget about surveys, just look at the actual market. Record low inventory is being driven by baby boomers staying put and the lack of home building thanks to hardcore NIMBYism.
So it is no surprise that we now have a homeless crisis in L.A. County. Recently, in Orange County a large group of homeless encamped in various areas where set to be moved into affluent areas of the county and people went ballistic. So where do we go from here?
Keep in mind this has occurred during a booming stock market and a time when real estate values are soaring. The unemployment rate is low but you have a bimodal market – a smaller group of affluent buyers and investors and a larger working class that is simply unable to buy.
ORIGINAL SOURCE: Homeless in L.A. – homeless population surges 75% in past six years at Doctor Housing Bubble on 5/1/18