America's Road To Serfdom: 51% Of Renters Are Over-40 Years Old

Tyler Durden's picture

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

Today’s story from the Associated Press perfectly illustrates how millions of Americans were reduced to neo-feudal serfs by the financial crisis, and how those who ruined the economy profited handsomely from the process.

While popular perception holds that debt-ridden, broke millennials are the ones driving the rental market, the truth is far more nuanced. As the AP reports:

WASHINGTON (AP) — The majority of U.S. renters are now older than 40, a fundamental shift over the past decade that reflects the lasting damage of the housing crash and an aging population.


This finding in a report released Wednesday by Harvard University’s Joint Center for Housing Studies overturns the assumption that the rental boom is only the result of twenty-somethings flocking to hip urban centers. Single-family houses are a growing share of rentals. And affordability problems are mounting as rents rise faster than wages, while apartment construction increasingly targets tenants with six-figure incomes.


Nearly 51 percent of renters have celebrated their 40th birthday, according to the report’s analysis of Census Bureau data. That amounts to 22.4 million households.


A decade ago when the housing bubble peaked in 2005, 47 percent of renters — or 16.4 million households — were older than 40. Their share was 43 percent in 1995.


The increase in older renters corresponds with a surge in foreclosures after the housing bubble popped. Since the 2008 financial triggered by the housing bust, there have been roughly 6 million completed foreclosures, according to CoreLogic, a property data firm.


Many of these are former owners transitioned to renting.


Rents increased 7 percent between 2001 and 2014 after adjusting for inflation, while incomes fell 9 percent, the report said.


The result is that a larger number of Americans must devote more than 30 percent of their income to rent, a level that the government considers to be financially burdensome. Over the past decade, that number has jumped from 14.8 million to 21.3 million, or 49 percent of all renters.

The worst part about all this, is that a small segment of the population made a fortune off the crash and subsequent rental rebound. These people were some of the same Wall Street players who the U.S. taxpayer was forced to bail out with the ruse of “saving Main Street.” One of these individuals is an ex-Goldman Sachs banker named Donald Mullen, who also happens to be a huge Hillary Clinton donor. Here’s what we learned from last weeks’ post, Ex-Goldman Banker Who Profited from Housing Crash and Subsequent Bailout Donates $100k to Hillary SuperPAC:

Mullen, while a Goldman Sachs employee, pioneered the trades that allowed the mega-bank to profit from the collapse of the housing market. Mullen’s team utilized financial instruments called collateralized debt obligations to essentially bet against subprime mortgages.


In 2012, Mullen left Goldman Sachs to do the opposite of what he did in 2007: He started a hedge fund whose purpose was to buy up foreclosed homes and rent them out. New York magazine’s Kevin Roose described the career change this way: “A guy whose most famous trade was a successful bet on the full-scale implosion of the housing market is now swooping in to pick up the pieces on the other end.”


Mullen gave $100,000 to Priorities USA Action on June 30. According to Federal Election Commission data, this is the largest single contribution he has made to any soft money organization in his giving history. (In total, he has given $220,000 to soft money groups and $529,621 in individual contributions).


This guy literally profited from people losing their homes, then profited on the other side from the government bailout by buying these same homes from the victims who lost them. This is precisely how Wall Street makes money. 

And this is the man who made it all possible:

Screen Shot 2015-09-24 at 10.10.11 AM

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
hedgeless_horseman's picture



I am just grateful that we can, at this time, have three articles about guns, beer, and gold across the top of Zero Hedge.  That is a fairly good response to serfdom.

Thanks, Tyler, and thank God for the First Amendment.

InjectTheVenom's picture

serfdom , sounds nice man !     ocean waves, beer, bikinis .  .  . btw, is there a serfdom czar yet ?

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) InjectTheVenom Dec 9, 2015 2:52 PM

Informative.  I've got to raise my rents.  Thanks Tyler!

JRobby's picture

And a security detail. But you will have that extra rent $$ to pay them.

nuubee's picture

50+% of marriages end in divorce.

Over half of those divorces (probably much closer to 90-100%) impose financial burdens on the father, while leaving kids and house at least temporarily to the mother.

Hence, there's a shit-ton of over-40, and 1-lost-job-away-from-going-postal fathers who are renting while paying for the housing/food/dating of their ex-wives.

JRobby's picture

He did not provide for me like he promised he would...................

froze25's picture

Thank a progressive for this mess, don't forget that Republicans and Democrats can both be progressives.

DontGive's picture

No, thank the idiotic society that has been bred from complacency and coddling.

They get what they deserve.

Pay your rent bitches!

A Nanny Moose's picture

Why buy an over priced debt/tax trap, when you can rent one from sombody else?

fstwrtr's picture

Because HO's are normally in it for the long haul, you buy a house and hope to out live the mortgage.. I bought my house in 2000, and bit the bullet for 15 yrs.. Now I am mortgage free.. I still have property tax and Insurance, But for the most part owning far outweighs renting.. I always have the option to rent it, or sell it.. unlike renting.  As a renter,  You have the option of either making your house payments, or making somebody elses house payments when you rent...But either way, you are making them.

Refuse-Resist's picture

That giant sucking sound, affirmative action, immigrants.

Obamacare, taxes, and of course, currency devaluation.


pods's picture

Don't well all rent from the Lord who owns proper title?

Oh wait, those are not rents, merely property taxes.

Got it!


Countrybunkererd's picture

And that same lord will soon want all the children for the upcoming war, especially since everyone is seemingly tapped out from healthcare.  Something MUST be paid to said lord always... and when there is no money it must be paid in kind; that is to say humankind.  Get those injuries documented as to avoid the first round of draft since the FSA will not be eligible for any type of activity even shuffling papers!

Son of Loki's picture

Anyone else giving a Chipotle debit card as a gift for Christmas?

Implied Violins's picture

I've had enough of bank runs. I don't need real ones.

Vatican_cameo's picture

You mean this isn't real?  I was so counting on this.



froze25's picture

@Pods, I think this book will be right up your ally. This is a link to the PDF of it.

What you talkin about Willis's picture
All Women Are Whores - MGTOW

Alex on life.


Good Shit.


LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) JRobby Dec 9, 2015 3:06 PM

"And a security detail. But you will have that extra rent $$ to pay them."

Exactly.  Good advice all around here!  Thanks JRobby!

JRobby's picture

Until they turn on you too............................

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) JRobby Dec 9, 2015 3:43 PM

Ahhh...  So they are much like wives.

TheDanimal's picture

I think weed is a better response to serfdom than beer.  Alcohol kills brain cells, weed actually may promote neurogenesis. 

Dinero D. Profit's picture

Herb keeps the birds off the antenna.  It keeps your frequency clear.  

JRobby's picture

It will be over 60% within 2 years

Hitlery_4_Dictator's picture

Bold prediction that I think will come true. 

JRobby's picture

Seems that the slide is beginning to accelerate now.

Implied Violins's picture

I'm baking adobe bricks in my oven right now.

froze25's picture

Nah, real estate bubble is ready to pop across the board. The question is will you have money to purchase any when it does.

Whalley World's picture

I earn a pile and since divorcing have chosen to rent.  Living in Vancouver only a clown would buy in this inflated market.

As a result, I find renting to be more cost effective, no depreciating asset, no repairs for mechanical and appliances and the freedom to take off without trying to flog an overpriced home.

It was Bill Bonner who said a house is not an asset, it is shelter that's it, that's all.

Karlus's picture

Renting is far perferable to mortgage + maintenance + condo board assessments...etc.

And homeownership also has lots of variable costs.


No thx, renting is just fine with me.

I am a Man I am Forty's picture

No doubt, all depends on what kind of deal you get on the house.  I've owned and rented, mostly rented, sold a couple homes at the perfect time because I got a divorce from my whore ex wife.  The only thing she brought to the table was being a ho which meant me filing for divorce and selling out at the right time.  Cha ching!  And she got next to nothing cuz she was a ho.  I think that's where Santa got HO HO HO from.  She was probably banging santa too.

JRobby's picture

Do you think your X wife might have been a ho?

BandGap's picture

Do you have pictures or a business card? Lots of guys on this board could use her help.

pods's picture

I'd be a bit careful about disparaging the ex wife.

Remember, you chose her.


I am a Man I am Forty's picture

Nope, I fucked up, made a huge mistake, I was a fucking idiot.  No need to be careful.

Karlus's picture

Sometimes renting the cow is better than owning it.


This is coming from a guy married to a Russian

I am a Man I am Forty's picture

Definitely, second time was the charm for me.  Learned from my mistakes, honed my mate selection skills, and found a terrific woman/wife I plan to spend the rest of my life with.

AlaricGaudiTheSecond's picture

How long did it take you to find her after? Did you look or you just found her, If i may ask.

Squid Viscous's picture

same here, except first wife was OK person, just totally incompatible... and no kids thank God.

What you talkin about Willis's picture

Double dog dare you to check out a youtuber, ALex on Life.

Countrybunkererd's picture

nearly spit water all over the screen!  Water is better than coffee to clean up.  Note to self: maybe you need to keep away from ZH until coffee time is done for the day...gotta pay for the healthcare of everyone but myself these days not a replacement screen, can't be rayciss.

SilverSphinx's picture

pods doesn't think he can be lied to and betrayed.


But oh, yes you can be and your 'choice' has little to do with it.

Dinero D. Profit's picture

All this is very amusing to me.  I've been married 52 years, and I can say this: There is no happiness in life greater than mutual satisfaction in marriage.

What you talkin about Willis's picture

"Remember, you chose her."


Dude you just outed yourself as a virgin,  women pretend to be extactly what they think you want until this have the ball sack firmly in the vice grips.  Then and only then do you find out who she really is. 

Squid Viscous's picture

I am a man: and your AAPL profits - been a great call, despite all the ribbing here (including me) ... props

I am a Man I am Forty's picture

Thanks Squid, I'm in agreement with most everything on ZH, so it's fun to go against the grain on something.  

AlaricGaudiTheSecond's picture

Entitled ho's, divorces and apartment rentals....yea a logical trilogy.

buzzsaw99's picture

+1 it doesn't matter how you do it. if you can put any kind of roof over your head these days you are doing well.

McMolotov's picture

That's one of the reasons I'm not all bent out of shape by grown-up kids living with their parents nowadays. I've never tried homelessness, but I imagine it sucks ass. As long as the kids kick in something for the costs and don't annoy the hell out of the parents, it's not a bad deal for all involved. Multiple generations living under one roof is completely normal in many parts of the world, and it's economically beneficial, but the US has an unhealthy obsession with wanting kids to leave the nest and get into debt as soon as possible.

I used to want my kids to move on once they turned 18. However, now I think the primary concern should be making sure they aren't buried in debt by the time they're 30.