Home ownership in US lowest in 20 years

[jem]

where do you think the money comes from that allows many of the massive hedge funds to acquire the capital that allowed them to buy up a great deal of housing stock 2 years ago. Causing prices to go back up and putting homeownership out of the reach of many.

Money is tied to Wall Street and Wall Street is tied to the Fed, Fed policies, lending rates, auctions and the Feds ability to make money out of digital air and buy crap assets from the bankers.

 

[WeToddDid2]

I have been wondering how much of the home ownership rate is attributable to the following (wish I had recent aggregate datat):

http://www.federalreserve.gov/econr...he-single-family-housing-market-20131205.html

 

[Clubber Lang]

Go QE! Wooohoooo!

It's tough to buy a home when you used to have an $80,000/year job but now you have a job at Home Depot stocking shelves for $40,000.
Well done Obama.

 

[jem]

very interesting graph. thank you.
I suspect large and medium investors are starting to slow down purchases... they have already backed out of many parts of California.

I have been wondering how much of the home ownership rate is attributable to the following (wish I had recent aggregate datat):

http://www.federalreserve.gov/econr...he-single-family-housing-market-20131205.html

 

[Tsing Tao]

No, and I'll concede that point if you'll concede that trickle-down as we knew it is broken.

(I left out an important point re supply shock inflation: we all know what can happen when that occurs, while effective demand is low, and the Fed tightens.)

I don't think I ever defended trickle-down, did I?

As for supply shock inflation, yes, we know. But if the inflation (cost-push) was artificially high before due to too much money chasing yield, then wouldn't it be better to start from a number free of artificiality and see what true demand looks like, then address how to make demand stronger? QE doesn't improve demand. The Fed can't make people buy stuff. It can tempt people to buy on credit but that's just debt - and debt is only taking future productivity and pulling it forward. It is not sustainable. It is not demand, it is future demand.