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US Rents Rise To New All-Time High; Homeownership Rate Stuck At 18 Year Low

Tyler Durden's picture


One quarter ago, when we performed our regular update on trends in US homeownership and rents, we said that "The American Homeownership Dream is officially dead. Long live the New Normal American Dream: Renting." What happened since then is that the American Dream briefly became a full-blown nightmare when in Q3 mortgage rates exploded, pummeling the affordability of housing, and ground any new mortgage-funded transactions to a complete halt (don't believe us - just ask the tens of thousands of mortgage brokers let go by the TBTF banks in the past 6 months). Which is why it was not at all surprising to find that the just updated Q3 homeownership rate has remained stuck at 65.1%: the lowest since 1995.

And yet, even though household formation has continued to implode (more on that in a subsequent post) despite the shrill promises of housing bulls who still have to realize that the transitory pick up in home prices has nothing to do with organic growth or a stable consumer, and all to do with the Fed's balance sheet, the now effectively finished REO-To-Rent program, and illegal offshore cash paked in the US, Americans have to live somewhere. That somewhere is as renters of Wall Street and other landlords. As the next chart shows, the median asking rent has once again risen in Q3, this time by just $1 from $735 to $736 per month.

Luckily Owner Equivalent Rent is largely adjusted (hedonically) by the Fed in its CPI calculation making it seem quite friendly, or else its all time highs may give the impression that inflation is not quite as dead as the Fed portrays it.

But what is perhaps more notable is that even asking rents are starting to roll over in almost all parts of the country except for the Northeast.

Finally, why are any of these upward trends in significant jeopardy? Because while the 0.01% are getting wealthier by the day, everyone else... isn't. As can be seen on the chart below.


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Tue, 11/05/2013 - 14:25 | 4123461 LawsofPhysics
LawsofPhysics's picture

Ah yes, the success of the "rentier" society.

This should end well (and remember the bastille)...

Tue, 11/05/2013 - 14:56 | 4123583 icanhasbailout
icanhasbailout's picture


Tue, 11/05/2013 - 15:19 | 4123646 Ying-Yang
Ying-Yang's picture

"The American Homeownership Dream is officially dead."

The FED can rent out all those houses inside their MBS... /sarc

Tue, 11/05/2013 - 15:22 | 4123661 Dareconomics
Dareconomics's picture

The situation is worse than depicted.  Rents are actually much more expensive,  because real incomes have fallen during the time period in question.

Tue, 11/05/2013 - 15:31 | 4123699 NihilistZero
NihilistZero's picture

It's a bullshit statistic because it's ASKING rents.  And even taking into account the median most of the new rental inventory is urban where rents are always going to be higher.

Ask the local land lords what their cap rate and occupancy rates are looking like.  That picture ain't so rosy...

Tue, 11/05/2013 - 15:47 | 4123766 Kickaha
Kickaha's picture

Your anectodal experience is not unexpected.  My own observations are that as jobs disappear, people are gravitating to where the few available jobs exist, and that is near urban centers.  Also, people who used to be content to commute long distances to nice jobs have seen their salaries and benefits cut tremendously to the point where they have lost their fringe suburban homes to foreclosure and then moved closer to work to avoid the commuting costs they can no longer afford.  Finally, much of the shuttered businesses were small operations opened up by guys on the fringes of urban areas close to their idyllic homes, and small business has really taken it on the chin due to an inability to purchase legislators when they come up for auction during elections.

Tue, 11/05/2013 - 15:48 | 4123774 cbxer55
cbxer55's picture

"inability to purchase legislators when they come up for auction during elections."


LOL!  Sad, but oh so true! 

Tue, 11/05/2013 - 16:09 | 4123867 Jumbotron
Jumbotron's picture

"Your anectodal experience is not unexpected.  My own observations are that as jobs disappear, people are gravitating to where the few available jobs exist, and that is near urban centers.  Also, people who used to be content to commute long distances to nice jobs have seen their salaries and benefits cut tremendously to the point where they have lost their fringe suburban homes to foreclosure and then moved closer to work to avoid the commuting costs they can no longer afford."

We might as well start building worker dorms like the Chinese.

Tue, 11/05/2013 - 16:22 | 4123920 Bobbyrib
Bobbyrib's picture

While walking back to my apartment, I saw people clamoring around tables selling winter clothing dirt cheap (gloves for $1 and sweaters for $3). I immediately though to myself manufacturing in the US will never compete as long as the sheeple keep buying cheap third world mass produced garbage.

Also when I walked by a popular thrift shop a few days before that, people were waiting on line to sell their clothing for what looked like hours. There seems to be a supply glut.

Tue, 11/05/2013 - 17:25 | 4124199 gorillaonyourback
gorillaonyourback's picture

So i lve in in upscale burb near san diego and while at my coffeee shop i was in a conversation with a young women about 20 behind the cash register. Here was the gist ; she makes 8$/hr she shares room with her girlfriend she pays 500/month for a half bedroom in a 2 bedroom apt. She planning moving back home. Many people here are leaving because of the cost of living. Rents are finally starting to crack i saw a 2 bedroom for 1700 a month thats what it was 5 uears ago.

Tue, 11/05/2013 - 15:57 | 4123814 Freddie
Freddie's picture

F this and F renters.  Try owning something.   You pay through the arse on taxes, water, garbage and the list goes on.    You pay for those golden pension for the cops, fire, city and county workers.

Tue, 11/05/2013 - 16:20 | 4123902 cornedmutton
cornedmutton's picture

F renters? As someone who's NEVER "owned" a home since I've been continuously priced out of the market since my start in 2001, I have to say, FUCK YOU.

You think you "own" your home?  Stop paying taxes and see what happens.  Either you pay the King's Men or they take back that land and home you think is yours.

It's not yours.  It's the government's.  You just take care of it and assume all liability until such time as you can no longer afford to.  At that point, it is taken from you and "sold" to someone else.  Rinse, repeat.

And as for payments to the city/county/ you really think these costs are not included in the cost of rent and passed along to the renter?  I suppose you think corporations pay taxes too.

Oh, yeah...almost forgot...GO FUCK YOURSELF.

Tue, 11/05/2013 - 17:29 | 4124219 gorillaonyourback
gorillaonyourback's picture

Well f you for takin it up the ass lololol sry i dont feel your pain.

Tue, 11/05/2013 - 20:20 | 4124901 InvalidID
InvalidID's picture


 I gotta get in and double what corn said up there. Pay out the ass? WTF do you think renters pay for? You think a guy renting a house insn't paying for the taxes, water, garbage, and the list goes on, plus profit to the fucking landlord? Are you fucking retarded? FFS, did you work for Bear Stearns or something?

Tue, 11/05/2013 - 16:01 | 4123828 Handful of Dust
Handful of Dust's picture

As more and more renters wake up and realize they don't need to actually pay that rent it's going to uglier yet.

Look how many house sitters there are not paying their mortgages and living rent free. Courts are clogged and landlords are overwhelmed. Of ocurse, banks ha ve no incentive to evict since they are handed almost free money from Ben.

Tue, 11/05/2013 - 15:25 | 4123674 CrashisOptimistic
CrashisOptimistic's picture

Interesting tidbit.  Definition of homeownership rate.  It is NOT the % of adults living somewhere who own their abode.  Rather:


"The homeownership rate is computed by dividing the number of owner-occupied housing units by the number of occupied housing units or households."


IOW it's the number of houses occupied by owners rather than renters.  This is NOT the number of people of a given age who own where they live.



Tue, 11/05/2013 - 16:54 | 4124031 TheGardener
TheGardener's picture

Posted this before, on a bank questionnaire once in Asia
they asked about assets : What are your assets except your primary residence ? Do you own your primary residence or is it rented/mortgaged ?

Rented or mortgaged one of the same affliction!

Tue, 11/05/2013 - 15:21 | 4123663 BKbroiler
BKbroiler's picture

I have an apartment for rent in the East Village section of Manhattan, a pretty nice part of town close to NYU.   It is 10X 6 (yes, 60sf), has no kitchen, shares a bathroom in the hall, and is currently renting for $1095.  The future is bleak folks and it looks a lot like that.

Tue, 11/05/2013 - 15:28 | 4123686 Trimmed Hedge
Trimmed Hedge's picture

At least it's not $1,100...

Tue, 11/05/2013 - 15:34 | 4123704 Skateboarder
Skateboarder's picture

No windows, am I correct? Guessing the window units go for double.

Tue, 11/05/2013 - 15:40 | 4123737 cbxer55
cbxer55's picture

Windows? Windows? We don't need no stinkin windows!

Especially if you live in Manhattan. What are you going to look at anyhow? The building right outside your window! 

Tue, 11/05/2013 - 16:24 | 4123929 BKbroiler
BKbroiler's picture

brick wall views come standard

Tue, 11/05/2013 - 15:39 | 4123716 CrashisOptimistic
CrashisOptimistic's picture

Okay, look, man.  Is there any imaginable disaster scenario that leaves Manhattan intact while destroying Iowa?  Are there any food riot scenarios that say "everyone on Manhattan will be fine, but if you live in rural farmland Pennsylvania you will starve"?

Or how about nuclear attack or biological warfare attack.  Do you think the target will be Nebraska farmland rather than Manhattan?

You're posting during the day.  You don't work on Wall Street and are thus not locked into living there.  So . . . don't live there.

Tue, 11/05/2013 - 16:39 | 4123950 BKbroiler
BKbroiler's picture

I'd rather be where the action is when TSHTF.  I'm one of the few here who is prepared.

Tue, 11/05/2013 - 16:46 | 4124009 ShorTed
ShorTed's picture

All of that in a 60 square foot apartment?  Jeez, must be high ceilings.

Tue, 11/05/2013 - 17:09 | 4124123 TheGardener
TheGardener's picture

I`m with you broiler, I just moved back to where the imperialistic action is from the third world, being tired of watching globalization from the losing sight.

Being out and there I`m utterly ill prepared I presume.

Tue, 11/05/2013 - 15:46 | 4123757 MeMadMax
MeMadMax's picture

Damn dude, you renting a Jail Cell?


Tue, 11/05/2013 - 17:11 | 4124132 Freddie
Freddie's picture

NYC is a jail cell.

Tue, 11/05/2013 - 15:45 | 4123760 mrdenis
mrdenis's picture

Bathroom down the hall ? ....what do I tell my guests ? 

Tue, 11/05/2013 - 15:50 | 4123786 cbxer55
cbxer55's picture

Tell them to make sure they use an ass gasket. ;-)

Tue, 11/05/2013 - 16:02 | 4123843 Handful of Dust
Handful of Dust's picture

Tell them to avoid Escobar's Diner.

Wed, 11/06/2013 - 10:34 | 4126658 SokPOTUS
SokPOTUS's picture

Tell them to sh*t the bed.

Tue, 11/05/2013 - 15:53 | 4123797 roadhazard
roadhazard's picture

You should be so proud.

Tue, 11/05/2013 - 17:29 | 4124225 BKbroiler
BKbroiler's picture

What do I care?  I wouldn't live in that shithole, just one of many listings.

Tue, 11/05/2013 - 16:13 | 4123877 Jumbotron
Jumbotron's picture

We ALL pay rent.  If you own property you pay property tax.  You rent from the government.  If you have a mortgage you pay rent on the money to the bank.

Their is NO such thing as ownership......except your mind.

Tue, 11/05/2013 - 16:20 | 4123917 LawsofPhysics
LawsofPhysics's picture

Right, how's that working out for greece again?  Try to think a bit harder and recognize that "laws" that cannot be enforced are not "laws" at all.

Tue, 11/05/2013 - 16:32 | 4123958 Jumbotron
Jumbotron's picture

"laws" that cannot be enforced are not "laws" at all.

Ask Greece as a country if they have stopped paying rent on money (interest) to the Euro banks.  There...fixed it for you.

Let me fix it a little more for ya....

Laws that cannot be enforced.....yet.

They always get back around to it.

Tue, 11/05/2013 - 17:41 | 4124272 LawsofPhysics
LawsofPhysics's picture

Wake us when they do.

Innovative people find ays around everything.  try it, you might like it.

Sounds like you need a new tax attorney.

Tue, 11/05/2013 - 18:13 | 4124424 Jumbotron
Jumbotron's picture


You must go in for one of those "put everything into a trust" schemes.

Whatever.  You use money don't you.  Then you pay rent.  Whatever cash or digital bits in your account have rent taken out due to currency manipulation and printing.

You're not that smart.


Tue, 11/05/2013 - 18:29 | 4124496 TeMpTeK
TeMpTeK's picture

theres always "allodial title" if u can get it....

Tue, 11/05/2013 - 19:12 | 4124642 Nobody For President
Nobody For President's picture

Jumbo, when you said:

"Their is NO such thing as ownership......except your mind."

You were right, but not in the way you meant it.

I bought 40 acres of pretty decent ridge/timber land some 40 years ago - but I didn't really buy the land. I bought the right to care for it for the rest of my life - a distinction I have never forgotten. Planted a lot of trees, made my immeadiate homestead area (about 2 acres) reasonably fire safe, now I mostly try to enjoy the fruits of my labor. (Shitload of apples this year, speaking of fruits. The peas, tomatos, and strawberries came in big time as well.) Sure, I pay taxes on the land and the buildings I have built, so what? You think there are no taxes in your rent money?

I have a place that is mine, because I built it. And I love this land, and plan to die here. I doubt you can feel that way about a place you rent - my parents rented all there lives, and had nothing but a trailer to show for it at the end of their lives - my Dad died in it. Fuck that.

I love this place. The other country boys on the list know what I am talkin' about. If you don't get it, I will suggest you are missing out on a big part of what it can be to be human.

Different strokes... 

Wed, 11/06/2013 - 15:27 | 4127977 Jumbotron
Jumbotron's picture

Jumbo, when you said:

"Their is NO such thing as ownership......except your mind."

You were right, but not in the way you meant it.

I bought 40 acres of pretty decent ridge/timber land some 40 years ago - but I didn't really buy the land. I bought the right to care for it for the rest of my life - a distinction I have never forgotten. Planted a lot of trees, made my immeadiate homestead area (about 2 acres) reasonably fire safe, now I mostly try to enjoy the fruits of my labor. (Shitload of apples this year, speaking of fruits. The peas, tomatos, and strawberries came in big time as well.) Sure, I pay taxes on the land and the buildings I have built, so what? You think there are no taxes in your rent money?

I have a place that is mine, because I built it. And I love this land, and plan to die here. I doubt you can feel that way about a place you rent - my parents rented all there lives, and had nothing but a trailer to show for it at the end of their lives - my Dad died in it. Fuck that.

I love this place. The other country boys on the list know what I am talkin' about. If you don't get it, I will suggest you are missing out on a big part of what it can be to be human.

Different strokes...

Not really.....I don't rent.

Not to get into a pissing contest on land (my 5 acres can't compete with your 40) but I "own" free and clear.  Forested all around my property.....have about a 2 of the 5 acres forested inside property lines.  I have apples, oranges....not enough time since moving out here for other veggies and fruit yet.....but the chickens are producing a shit load of eggs and deer meat is coming as soon as they step back onto the property.

The horses are doing fine and all the kids (5) and the wife and I ride 'em all around.

However.....just sent a check to county for their $1,300 yearly property rent.  You did too.

Paid $350 in power company rent....but that's going to go away for the most part as I am going solar next year.  You paid rent on your power too unless you are off grid.

Both you and I did not make the land......God did.  So you don't own it.  And that land was stolen from the Native Americans (my forefathers...I'm descended from Chickasaw) by our white forefathers.  So you don't have clear title.

Once and I don't own shit.  Never have....never will.

And when you can't take any of that shit you don't "own" with you.  So in the will be maggot food just like your parents.....with nothing but a casket for your home just like your parents.

Drop the pride my friend.  Drop the delusion of ownership.  Embrace the truth.  We were all born into and will die on Prison Planet.

Only truth and God can set you free.  Why don't you "own" that.

Tue, 11/05/2013 - 18:37 | 4124530 DosZap
DosZap's picture

And just what anhd where can you rent anything worth living in for $736.00 a month in the USA?.

Tue, 11/05/2013 - 14:23 | 4123463 Ahmeexnal
Ahmeexnal's picture

Purge of US military continues. High ranking officers who accept to shoot US citizens stay, those who refuse are being fired:

Tue, 11/05/2013 - 14:42 | 4123538 yogibear
yogibear's picture

Dept of Homeland security has to use those billions rounds of recently purchased rounds for something.

Convert the political and military system to a unified entity.

Tue, 11/05/2013 - 15:56 | 4123811 Alcoholic Nativ...
Alcoholic Native American's picture

seal team sixed!  National Geographic should make a documentary 

Tue, 11/05/2013 - 14:25 | 4123470 slotmouth
slotmouth's picture

All those poor people who are struggling to meet these rent payments surely have the rest of their income in the market though, so it all evens out.

Tue, 11/05/2013 - 15:21 | 4123654 duo
duo's picture

rent up 2.5x in 23 years, that's 4% a year compounded.

Tue, 11/05/2013 - 14:25 | 4123475 10mm
10mm's picture

Ownership was and is a lie.

Tue, 11/05/2013 - 14:30 | 4123492 LawsofPhysics
LawsofPhysics's picture

Bullshit.  Kinship/blood remains thicker than water and when fraud is the status quo possession is the law.


don't believe in "ownership", stop paying your rent, or better still, stop paying your taxes...

Tue, 11/05/2013 - 14:36 | 4123512 10mm
10mm's picture

Ownership is payed in full,nothing further attached.

Tue, 11/05/2013 - 15:03 | 4123600 LawsofPhysics
LawsofPhysics's picture

many unprepared and or tribeless "owners" of numerous assets have thought as much...

hedge accordingly.

Tue, 11/05/2013 - 15:23 | 4123667 donsluck
donsluck's picture

Ownership is the white mans' illusion. We only borrow from the earth, nothing is actually ours.

Tue, 11/05/2013 - 15:44 | 4123754 LawsofPhysics
LawsofPhysics's picture

For someone with no bloodline, that might be how they feel...

Tue, 11/05/2013 - 15:57 | 4123819 Dapper Dan
Dapper Dan's picture

Indian make small fire.... sit up close, 

 white man make big fire...  sit way back !

Tue, 11/05/2013 - 16:08 | 4123855 Deo vindice
Deo vindice's picture

Sorry, but Indians were not the great protectors of the environment that our rewritten history books are trying to make out.

White man never stampeded an entire herd of buffalo over a cliff in order to pick up a small percentage of them at the bottom.

Tue, 11/05/2013 - 15:36 | 4123714 Harbanger
Harbanger's picture

"Ownership is payed in full,nothing further attached."

Define paid.  At it's most elemental level, ownership is possesion.  Paid for in battle.

Tue, 11/05/2013 - 16:11 | 4123872 10mm
10mm's picture

Payed, where the deed in hand means what it's suppose to mean,it's your's. Kill the property taxes or any tax thats applied to home/property. As it stands payed in full does not mean ownership. It's a perpetual ball and chain. But yes, we do not own anything. So ownership is glorified renting.House is shelter and should be respected as such.

Tue, 11/05/2013 - 17:00 | 4123969 Harbanger
Harbanger's picture

Right now we're all rentiers to the state, it's best to own things outside the systems radar.  But you still need to "own" your own personal property.  Even the broken state recognizes who butters their bread, property tax payers.  I have foreigners calling me every other day offering me more than market value for my property.  Why? because they're moving out of cash, specifically they're unloading US $.  It's all relative.

-1 for bad spelling even after the heads up.

Tue, 11/05/2013 - 16:15 | 4123886 Jumbotron
Jumbotron's picture

Ownership is payed in full,nothing further attached. property tax?  Pay a fee for your tag, title, license and insurance for your paid off car or truck?  What about that boat....and trailer?

There is ALWAYS something attached.

Tue, 11/05/2013 - 16:21 | 4123914 10mm
10mm's picture

That was my point Jumbo. OWNERSHIP IS A LIE.

Tue, 11/05/2013 - 16:34 | 4123965 Jumbotron
Jumbotron's picture

Mea culpa.  Went back and read further up....saw your context.  Downvoted myself as self flagellation.

Tue, 11/05/2013 - 18:38 | 4124523 TeMpTeK
TeMpTeK's picture



Tue, 11/05/2013 - 21:26 | 4125144 ForTheWorld
ForTheWorld's picture

Ownership implies that there was an original person who claimed the land. That's the part people don't consider - who ORIGINALLY decided a piece of land was theirs, and then decided to lease it (under the guise of an an exchange of ownership for gold/scrip/chickens/whatever)?

In Australia, it's the Aboriginies or the Crown - it just depends on who you ask.

Tue, 11/05/2013 - 15:30 | 4123688 RSloane
RSloane's picture

We own our own land, we paid off our house. No mortgages anywhere. We grow quite a bit of our own food. We have your famous sharecroppers paying us to use our land to get the 'experience' of growing their own food. We work, we save, and we know if/when the shit hits the fan family is going to be the first thing that matters. Go long extra bedrooms for family trapped elsewhere.

Tue, 11/05/2013 - 15:42 | 4123742 CrashisOptimistic
CrashisOptimistic's picture

Before you think you're safe, are you within 40 miles of a major city?  Because if you are they will come take your shit.  Don't think your rifles and bullets will stop 10,000 coming to take your shit.

The only solution is distance beyond city walking ability and preferably a place to hide for a year or two so that die off solves your problems.

Tue, 11/05/2013 - 16:16 | 4123896 Jumbotron
Jumbotron's picture

We own our own land, we paid off our house. No mortgages anywhere.

Try not paying your light bill.  You pay rent to the power company.

Try not paying your property tax.  The government will come to seize it.  Try to fight them off.....and they will shoot you dead.

You don't own ANYTHING.

Tue, 11/05/2013 - 16:41 | 4123994 Miffed Microbio...
Miffed Microbiologist's picture

I've noticed an interesting trend for those of use that have land and live in the hinterlands. Several have moved trailer homes on their property late at night, set up camouflage netting and are renting them out for cash only. They showed me how to do it and who to contact. It's too dangerous for me to consider at this point living in Cali but I am tempted at some point to rent my 2 empty bedrooms. I'm fortunate to have a 2700sq ft home with a 1500 sq ft basement. Our mortgage is $1000/ month because we bought a fixer upper that several of our friends laughed at. Several of them have been foreclosed on and are living with their parents now, their ostentatious homes now owned by Chinese.


Tue, 11/05/2013 - 18:15 | 4124437 Jumbotron
Jumbotron's picture

"Several have moved trailer homes on their property late at night, set up camouflage netting"

For those who are interested.......



Tue, 11/05/2013 - 21:32 | 4125169 gbresnahan
gbresnahan's picture

I've come to learn that if you're being laughed at then you're probably doing the right thing.

Tue, 11/05/2013 - 14:35 | 4123506 NOTaREALmerican
NOTaREALmerican's picture

Re:  Ownership was and is a lie.

Not sure in what context you mean this, but there's not many concepts as primal as ownership.    Ownership is one of the best way to screw those you don't like by limiting access to what you own.   What's better than screwing people you don't like?

Tue, 11/05/2013 - 15:26 | 4123659 Harbanger
Harbanger's picture

You don't own me!  (The state does)  So don't tell me what to do or say,  I'll do what I please.

In memory of an old Gore, (turns out was a closet lesbian, fooled again, doggonit)

Tue, 11/05/2013 - 16:19 | 4123905 10mm
10mm's picture

We do not own anything for that matter as we die. So we pocess for a limited time. So the term "Ownership" is misused. But as i stated it's a lie,always was. A misguided term by the usury parasites.

Tue, 11/05/2013 - 18:46 | 4124553 DosZap
DosZap's picture

Not sure in what context you mean this, but there's not many concepts as primal as ownership.    Ownership is one of the best way to screw those you don't like by limiting access to what you own.   What's better than screwing people you don't like?


I think it is in reference to the item in the article.Houses.You never OWN a house if you live in any municipality, taxes you WILL pay or lose your home,for non payment(payed for in full or not).Same with vehicles, and anything that requires a license\,tags,inspections to operate on public thoroughfares.

Tue, 11/05/2013 - 14:29 | 4123485 SheepDog-One
SheepDog-One's picture

Truly landless peasants, same as it always was.

Tue, 11/05/2013 - 14:34 | 4123497 NOTaREALmerican
NOTaREALmerican's picture

Rents going up,  food prices going up,  bling prices going up,  personal income going (?) down (?).

How are restaurants doing? 

Maybe the underground economy is doing much better than people know and personal income isn't really going down.

Tue, 11/05/2013 - 14:41 | 4123532 Dre4dwolf
Dre4dwolf's picture

Not only is income going down.

but the purchasing power of the declining income is also going down.

People are earning less purchasing power per hour than they did in the 70s.


Central Banking set this country back 40 + years in developement.

Tue, 11/05/2013 - 14:49 | 4123566 insanelysane
insanelysane's picture

Restaurants are tanking.  The only reason they are still in the game is that a large percentage of the under 30 crowd cannot make a meal.

Tue, 11/05/2013 - 15:13 | 4123629 NOTfromSanFrancisco
NOTfromSanFrancisco's picture




That's funny!... It is sad and it is true,  but it is still funny!...

Tue, 11/05/2013 - 14:39 | 4123499 Dre4dwolf
Dre4dwolf's picture

"everyone go buy houses" (Inflation) 6 years later "everyone sell your fucking house"(deflation) 5 years later  "fuck everyone is homeless" (depression)

Net Result, Corporations and Banks Made Reccord Profits, American people took reccord losses AND bailed out the banks to PAY FOR BIGGER BONUSSES.

America is fucking corrupt to the core...................... no amount of voting can fix this because the problem is BANKS and CORPORATIONS have become more powerful than the government.


Central Banks are great, pfft

jefferson was right, you gota hand it to him, the dude predicted the future to a T.


  1. "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."
Tue, 11/05/2013 - 15:11 | 4123620 NOTfromSanFrancisco
NOTfromSanFrancisco's picture




I have always appreciated that quote and the wisdom of most of our founding fathers...

Tue, 11/05/2013 - 14:38 | 4123501 cbxer55
cbxer55's picture

I rent an apartment. Little over a year ago my wife said she wanted a divorce. Left her with the money pit house, and moved into a really nice gated apartment that has garages that I can actually use for once. The garage at my old house is filled up to the rafters with my wife's daughters stuff, it's a storage locker, not a garage. Now my motorcycle and Ford Lightning rest safe and secure in their own garages, while I drive my old beater Ranger in the bad weather.

I ain't complaining. Pool, spa, 24/7 gym on site. Cookies, coffee and donuts in the office every morning. Really, one donut every couple days isn't gonna kill me. 

Really, whats owning a house anyways? Get to mow the lawn, do all the upkeep, etc. Here it's all done by the maintenance people.

Tue, 11/05/2013 - 15:33 | 4123705 donsluck
donsluck's picture

I figured out 30 years ago that home ownership is the end of freedom. However, two daughters and a happy marriage later, I own my house outright and am still free.

Tue, 11/05/2013 - 14:37 | 4123518 alien-IQ
alien-IQ's picture

Went with a friend this past weekend (in Miami) who was looking for an apartment. It was truly depressing. Nothing under $1000 per month. and the only thing close to that price range were 500sq ft studio apartments. Small 1 bedrooms (600-750sq ft) were in the 1600-2500 range. And two bedroom with over 1000 sq ft ...forgetaboutit. 3k per month and up. I felt like puking.

Tue, 11/05/2013 - 15:13 | 4123626 AlaricBalth
AlaricBalth's picture

South American money is pouring into Miami at a rate not seen since the cocaine cowboy days of the '80s.  Brazilians, Venezuelans and Argentinians are buying condos all over town, driving up prices. Developers such as The Related Group are forgetting the lessons of the real estate crash, as construction cranes are sprouting up like weeds.

Tue, 11/05/2013 - 15:30 | 4123695 CrashisOptimistic
CrashisOptimistic's picture

Get out of Miami.  You will not see those numbers in rural areas.

Tue, 11/05/2013 - 15:57 | 4123816 alien-IQ
alien-IQ's picture

Yeah, there are a lot of things you won't see in rural areas...unfortunately, many of them are things I'd like to see in a place I live.

Tue, 11/05/2013 - 16:29 | 4123953 YC2
YC2's picture

You can't make enough money in Miami to live here.  Its a playground for the rich and the service industry that serves them drinks.  Rents are insane if you work for a living.


If my gf wasnt the hottest thing on earth Id be out of here in a heartbeat lol.

Tue, 11/05/2013 - 14:38 | 4123520 GrinandBearit
GrinandBearit's picture

SHTF = Free Rent. 

Landlords take note.

Tue, 11/05/2013 - 14:39 | 4123521 Elliptico
Elliptico's picture

Renters are winners!  They trade paper for lodging.

Tue, 11/05/2013 - 14:57 | 4123588 UpAndComing
UpAndComing's picture

If they printed it, I'd concur...but they sell their time for said paper.

Tue, 11/05/2013 - 14:41 | 4123529 annabelleballow
annabelleballow's picture

I taught the American Dream was to have (start) your own business. When did we change it to homeownership?    

Tue, 11/05/2013 - 14:48 | 4123554 yogibear
yogibear's picture

You really don't own the home, even if it's paid for. You rent it from the county (property taxes).

Stop paying your county rent and see how fast the county evicts you and sells the property through a tax sale.


Tue, 11/05/2013 - 14:52 | 4123572 insanelysane
insanelysane's picture

I try to explain that to people and they just stare back like I am crazy.

Tue, 11/05/2013 - 15:40 | 4123732 Trimmed Hedge
Trimmed Hedge's picture

You might want to start hanging with a better crowd...

Tue, 11/05/2013 - 15:44 | 4123749 cbxer55
cbxer55's picture

Don't think there are any of those these days. Everyone lives in their personal communication devices these days. Hard to carry on a conversation with anyone whose head is down there. They all just stare at you as if to say, "how dare you interrupt me, I'm interacting with my phone, go away!"

It's sad. ;-(

Tue, 11/05/2013 - 15:58 | 4123818 Binko
Binko's picture

Don't bother trying. You can say it here and get up-votes because people here are trying to think. Say it out in public and you'll only arouse anger and hostility.

I spent two years talking about the housing bubble before it popped. Vowed never again to attempt to talk financial sense to people outside the web. 

Tue, 11/05/2013 - 16:11 | 4123870 El Vaquero
El Vaquero's picture

Most people will do that.  They are simply incapable of comprehending anything that does not fit within the framework of the status quo.  I think it's because they're scared of change and would rather stick their heads in the sand even though change is upon them, whether they want it or not. 


A few will start thinking about it though.

Tue, 11/05/2013 - 16:23 | 4123924 edifice
edifice's picture

You own the house; just not the land it sits on.

Tue, 11/05/2013 - 16:38 | 4123983 El Vaquero
El Vaquero's picture

I disagree.  Any property "improvements" are sure to result in your property taxes being raised.  What is even worse is that a lot of counties will have a standard list of how much adding something to the property "improves" its value, and those lists aren't always exactly in line with reality.  My neighbor wanted to put in a poll barn on some property that he owns, and he decided not to because he was told by the county was going to automatically add $15k to his property value for tax purposes because that's what it said on their list.  Never mind that it was something like 3 days of labor for him and $1500 worth of materials.  Same goes for houses.  The nicer the house, the bigger your tax bill is going to be. 

Tue, 11/05/2013 - 17:12 | 4124114 pazmaker
pazmaker's picture let's do the math...... I can pay $875 per year in property tax to the county and raise my chickens, rabbits and grow my own food(which I do) or I can pay $1100.00 in rent to some greedy bastard who tells me what I can and can't do on the property...... I think I'll take door number 1!

So kind of pointless to bring up the property tax issue as everybody understands that it has to be paid...your playing with semantics here.


Unless your homeless or stay in your parents got live somewhere.   My home is not in investment that i bought so it would appreciate in value, it's a place to live and raise my family so they are not on the street.

Tue, 11/05/2013 - 14:48 | 4123559 Bold Eagle
Bold Eagle's picture

Why is it necessary to use seasonably adjusted homeownership rate? Do people sell their houses every spring and live in tents untill winter comes?

Tue, 11/05/2013 - 14:53 | 4123573 insanelysane
insanelysane's picture

Long Mongolia!

Tue, 11/05/2013 - 15:56 | 4123805 Binko
Binko's picture

Makes it easier to hide the fact that the data is massaged. The more "adjustments" that are made the more artificial the number becomes and the easier it can be jacked around. 

Tue, 11/05/2013 - 14:50 | 4123567 Bangin7GramRocks
Bangin7GramRocks's picture

Fuck! If the average rent is $736, there must be big areas of flyover country that have like $200 rents?! Are they all barn apartments like Dalton rented in Roadhouse? Just curious.

Tue, 11/05/2013 - 15:27 | 4123680 l8apex
l8apex's picture

Roadhouse!  A terribly great movie.  Even the "Family Guy" rendition of it was great.

Tue, 11/05/2013 - 15:40 | 4123736 Elliptico
Elliptico's picture

Point Break better.

Tue, 11/05/2013 - 15:56 | 4123807 alien-IQ
alien-IQ's picture

Yeah, but just try to make a living where you can find $200 rents. It's $200 for a reason...and that reason ain't altruism.

Tue, 11/05/2013 - 16:04 | 4123845 moonman
moonman's picture

You can get an apartment very similiar in NYC. I mean it smells like shit, not horse shit but shit.

Tue, 11/05/2013 - 14:50 | 4123569 robertocarlos
robertocarlos's picture

We have rent controls so my rent has only gone up 50% in 28 year.

Tue, 11/05/2013 - 15:12 | 4123622 Bangin7GramRocks
Bangin7GramRocks's picture

Rent controls are the next thing that Big Banks will get "legislated" out of existence. I bet Schumer ghost writes the bill.

Tue, 11/05/2013 - 16:09 | 4123856 robertocarlos
robertocarlos's picture

The govt here saw the light of no new multi-family housing being built so now the new rule is rent can go up by the normal 1-2% inflation Plus now the landlord can add for repairs and unusual expenses like when natural gas hit the roof a few years ago. So the rent has gone up 3-4% a year tthe last 5 years. And when natural gas prices crashed the rent did not go down it just did not go up as much. So I think my rent has increased 20-25% in the last 5 years.

Unlike the USA, housing here continues to go up every year so now many apts subjected to rent control are being cashed out by converting into condos. Landlords always make money by adjusting to the rules. If they have to convert a 4,000 sq ft house into a rooming house with 200 sq ft rooms each renting to a section 8 welfare tenant for 450 a month they will do it.

Tue, 11/05/2013 - 14:59 | 4123574 kevinearick
kevinearick's picture

Blazing Saddles:  Cartels & Free Trade Agreements

The cartel cannot exist in an environment of free trade, and like everything else, must be grown from a seed, so it requires a favorable environment of free trade prohibition. As you can see with the latest cartel, pot, State Police Power establishes the exploitation law of diminishing returns, decreasing quality and increasing price, carving a center to grow taxation by an increasing number of middlemen, exploiting ignorance.

The Polish coal cartel likes to say that it can bury every human on the planet in its mine. That’s not quite true, but it’s a helleva lot closer to the truth than real estate scarcity, which is created by the irrational consumption of transportation infrastructure, which is only being increased by the leading edge of the corporate Internet. So much for escaping the consumption with virtual space.

You don’t wait until weeds have overwhelmed your farm to pull them out by the root, unless you want to fight weeds year after year, until they strangle your crop and your entire enterprise becomes a sunk cost. We have once again reached that stage in the empire cycle when the cartels have completely captured the middle class, with nothing more than a perception of artificial real estate scarcity, created by international regulation of artificial borders, favoring capital over labor.

First, the cartel gains control over energy, and then food, and then everything else. Welcome to Saudi Arabia. How do you like the weather?

Step away from the control device on the fuel line; it’s a conspiracy of stupid.

Empire process begins with individuals seeking reward on no risk, no work, and then grows into civil marriage for the purpose, into local economies for the purpose, and ends in a TBTF, cradle-to-grave government economy, built to perpetuate the cartel model, which is what you are looking at.

Despite massive real estate excess capacity, prohibited from use by cartel operation, the critters wake up every morning with the assumption of a quick buck on passive investment, ensuring artificial scarcity in favor of the cartels. And then chase RE inflation with stagnant wages ensured by trade agreements seeking the last fool, in planes, trains and automobiles designed for the purpose.

Automating the efficiency of empire process , and building spy networks to ensure full participation in the keep-up-with-the-Jones feedback loop, simply reduces the amount of cheese required for the wheel powering the prison. The Gulag isn’t run by the warden; it’s run by prisoners competing for privileges relative to other prisoners. Ultimately, they are all prisoners relative to those beyond the wall.

All a cartel can do is increase price and decrease quality, with artificially induced variability as noise, along the curve of diminishing returns, and it must have a population ponzi to do that, because the lottery promise is the cheese. Toyota kicked GM’s A because it raise price and held quality, while GM, with the backing of the reserve currency, decreased quality as well.

As you can now see, however, the system is self-limiting, because intelligence is ruled out over time, and it blows up when demographics decelerate. If no one is making pie, because everyone is competing to be chief, to avoid work, there is no pie. Likewise, global automation triggered a race to the limit of empire diminishing returns, with lots of cheap crap coming off the assembly line, paid for with so-debased entitlement income.

What now holds the middle class together, and in prison, is all the material crap it collects as prizes for compliance, which becomes a sunk cost relative to those beyond the legacy material prison. The empire runs exactly backwards; the body, and its impulse response to expected stimulus, controls the mind, leaving the mind no option but to map smaller and smaller details in the box, which the university labels as economic activity and measures as GDP.

When you net out all the misdirection, the Fed is debasing all currencies with real estate price inflation in an environment of wage stagflation, feeding every cartel on the planet in trade agreements made for the purpose. America is a fine scapegoat, but all the global embezzlers are following its lead, laundering their profits with the reserve currency and placing their losses on legacy government balance sheets.

In one manner or another, the vast majority is participating, actively or passively. Intelligence, along with associated living standards, is declining from generation to generation. From the perspective of non-participating labor, it’s a distillation process. Pen as many trade agreements as you like, pitting the middle class against itself. Labor doesn’t build bridges for real estate; the planet, and the universe, is awash in real estate.

If you place property before income before people, you get what you get, sunk cost real estate, and unless you are a worm, you can’t eat dirt. Ignoring the foundation, individual responsibility, simply grows the empire, into a vortex of words and make-work. If you do not discipline your self, you will be disciplined, by self destruction on a one-way road back to the churn pool. Labor doesn’t require a bankruptcy code.

A parent’s job is to move heaven and earth. If you are not up to the task, you may want to get out of the way, before the empire blows up.

Or, you may want to figure out how you are going to fix that elevator without replacement, which is all the empire mechanics can do, before global recognition of the corporate free cash flow problem. India outsourcing is not experiencing a currency crisis by accident. Americans may be new to this game, but the rest of the world has seen it all before, many times.

Save Mendo (Chicago); buy Oprah’s stuff! The Witches & Warlocks City Council thanks you.

Have you seen that commercial with the maladroit kid playing GI Joe, as a video game? That is America, projected. Careful, what lies beneath the still water. Gravity is no accident, and the pyramid doesn’t quite work the way the occupiers assume.

…bless those that persecute you…heap coals of fire…


Tue, 11/05/2013 - 14:59 | 4123590 Dr. Engali
Dr. Engali's picture

$736 a month in mortgage payments at today's rates will buy you a lot of house around here.

Tue, 11/05/2013 - 15:13 | 4123605 Mercury
Mercury's picture

Which is why it was not at all surprising to find that the just updated Q3 homeownership rate has remained stuck at 65.1%: the lowest since 1995.


Stuck? that's about where it should be.

It was in the low-mid 60% range from at least the 1950s to about 1995ish and even Fannie, Freddie, a gazillion affordable housing regulations, subprime CDOs and the biggest debt bubble in history only juiced it to like 69%.

Tue, 11/05/2013 - 15:07 | 4123609 Jack Burton
Jack Burton's picture

Home ownership is not always the American dream that it is portrayed as. Especially for younger unstable workers, home ownership can be a millstone around the neck. It limits the ease with which you can persue the jobs market. The same for older familes who face layoffs in the changing world of work. If you rent, you are mobile, can pick up and move close to any potential job, any city any region. You do not have property taxes and maintenance headaches. You pay a set rent and your worries are over. I think the home ownership is overrated for many Americans. How many are trapped in underwater mortagages, or just plain trapped in weak sales regions. A job is lost, or a better one presents itself and you can't jump at the chance to move to where it is because you are locked into the real estate market? And never forget, when you need to move, some Real Estate agent is gonna take a BIG cut out of your equity when you need to sell and move.

Depending on your job, consider carefully if you want to own or rent. Once the speculative aspect is taken out of real estate by a weak market, then that incentive to own is gone. The Fed trys to blow that bubble again, but it is faltering just as it begins to pick up speed. Don't bet your future mobility and large sums of money on the hopes of home equity rises that are just smoke from the Feds mirrors.

Tue, 11/05/2013 - 15:09 | 4123612 wagthetails
wagthetails's picture

i do think there is a portion of people who don't mind renting now as they feel real estate isn't going to recover soon.   so why not spend a few bucks living in the city.  the price of homes isn't going anywhere in the 'burbs...especially since all they built were 3000sf 4 bedroom homes....those dinosaurs will be worthless.  even if the next generation can afford them, what do the want with 4 beds and only 1 kid?  the good news is that, if you want a few kids, you'll be able to pick up one of those resource hungry, tax rich behemoths as at excellent prices. 

Tue, 11/05/2013 - 15:37 | 4123653 Mercury
Mercury's picture

Better yet, buy AND rent...out the top floor, the whole thing or whatever.

Borrow cheap, buy hard assets and rent dear...I mean, ask me a hard one.

Tue, 11/05/2013 - 15:17 | 4123639 The Proletariat
The Proletariat's picture

There has never been a better time to buy!!!!!!!!!!!!  Signed, Realturds

Tue, 11/05/2013 - 15:19 | 4123649 ItsDanger
ItsDanger's picture

ABC bank buys house for $300,000 when its worth $200,000.  Sells the mortgage to Fed.  Rents the house and securitizes rent payment stream and sells that to Fed.   Oh boy.

Tue, 11/05/2013 - 15:25 | 4123677 q99x2
q99x2's picture

Well then. You canl keep your insurance policy. There is no inflation.

Tue, 11/05/2013 - 15:31 | 4123693 taketheredpill
taketheredpill's picture



Bloomberg is all over the Non-Seasonally Adjusted data.




Tue, 11/05/2013 - 15:33 | 4123702's picture

We can't wait until rent is paid in Bitcoin.  Things will start to get intresting.

Tue, 11/05/2013 - 15:58 | 4123739 aldousd
aldousd's picture

removed, duplicate.

Tue, 11/05/2013 - 15:41 | 4123740 aldousd
aldousd's picture

Theoretically this is good news though... people who shouldn't be getting new loans aren't. Federal mandates to promote home ownership be damned. Owning a home isn't good for everyone. That's how we got into this mess to begin with. Certainly this isn't a solution to any problem but it does mean it's not getting worse at the expense of ever more debt slaves. We'll leave that for student loans to take care of.

Tue, 11/05/2013 - 15:52 | 4123788 alien-IQ
alien-IQ's picture

Can you explain how falling wages and rising rents is also "theoretically" a good thing?

Tue, 11/05/2013 - 15:58 | 4123821 aldousd
aldousd's picture

Supply and demand? What are you suggesting?

Tue, 11/05/2013 - 15:50 | 4123785 Uber Vandal
Uber Vandal's picture

Before ACA

$7.25/Hr X 40 hrs = $290/ week gross

$290 X 4 = $1,160.00 / month gross


$1,160 - $736 = $424.00 / month left over gross.



After ACA

$7.25/Hr X 29 hrs = $210.25 / week gross

$210.25 X 4 = $841.00 / month gross


$841 - $736 = $105 / month left over gross.


I think we have new definition of wage slave.

Tue, 11/05/2013 - 15:53 | 4123791 Binko
Binko's picture

Try to imagine what mortgage rates would be, or auto loan rates, if they were set by market forces.

In theory, interest rates have to be high enough to cover the cost of servicing the loan, coverage for defaults and a fair profit. That probably puts it at about 6 or 7% for home loans and 10% or so for auto. Maybe higher. At that point the great mass of Americans can not ever afford to buy either a house or a new car and the economy crashes back to a level that better reflects our true wealth (or lack of wealth). 

What we have now is interest rates set by Government decree and a societal blind eye turned to all the distortions and risk that builds up. How long can this go on? One more year? Two or three? Five? Ten? My wfe tells me I've been predicting doom forever and it hasn't happened. I'm sure financial doom is coming but I'm always surprised at just how long those in power can maintain the great illusion . 

Tue, 11/05/2013 - 15:53 | 4123793 yogibear
yogibear's picture

Yeah, home ownership worked well in Detroit. Ask those people that had homes worth thousands and  now are pratically worthless. If the commerce and jobs leave say goodbye to your home's value.

Brings up cities like Chicago/Illinois. People are leaving Chicago/Illinois and going to business friendly states like Texas.

The other way to avoid property taxes is to put a temporary structure on undeveloped land. Counties hate them because of the tax rates on them.

Tue, 11/05/2013 - 15:58 | 4123823 Alcoholic Nativ...
Alcoholic Native American's picture

I got no problem renting.  Rent is cheap if you know the landlord, and ownership isn't even on the radar with all the student loans I have.  Renting a place in town near your job is the way to go.  

Tue, 11/05/2013 - 16:17 | 4123897 venturen
venturen's picture

Get foreclosed and live rent and mortage free!

Tue, 11/05/2013 - 16:31 | 4123933 Shizzmoney
Shizzmoney's picture

"But there is no inflation"

Obviously, the reason why the housing bubble started was because Greenspan found the best way to cover up fraud is to blow up an asset bubble.

In a sense, this is encouraging because finally, maybe people are shunning taking on moar debt. 

Maybe the underground economy is doing much better than people know and personal income isn't really going down.

Gambling is up, bootlegs are booming, drugs have seen steady growth (minus pot being legalized), but pussy volumes are down (especially for your average hooker; those who cater to high end clients doing the best they have ever done, obv).  Thank you, porn (and the cost of health care to not only treat an STD, but also to treat a child, is also up).

Tue, 11/05/2013 - 16:33 | 4123964 RubberJohnny
RubberJohnny's picture

If ever since you've been sucking on Mommies tit you've ben led to believe that you deserve to own your own home without putting much effort into to it, then, you've been sadly mistaken.

Rent you lazy fuches and consider yourselves lucky to be able to do that.


Tue, 11/05/2013 - 16:53 | 4124043 NEOSERF
NEOSERF's picture

Realize that the 60% cash for homes transactions were simply banks offloading properties at close to mortgage cover rates to groups like Blackstone and Fortress.  Now that they are reversing this and trying to flip the properties, there really are no buyers left.

Wed, 11/06/2013 - 09:21 | 4126329 rational
rational's picture

Nominal rents vs. real incomes? Seriously?

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