Obama "Housing Recovery" Crushes "Blacks, Young Adults" As Homeownership Rates Crash

Tyler Durden's picture

The Obama administration has a tendency to conflate the strong performance of Fed-induced "assets bubbles" with "strong economic growth."  Unfortunately, as is often the case these days, the "hard data" paints a slightly different picture than the "narrative" being pushed by Obama and his staff.

Per a new report from the Pew Research Center, and as our readers are undoubtedly aware, home prices have indeed recovered to pre-recession levels with a little help from Janet Yellen and crew.

Nationally, home prices have almost recovered from the bust

 

That said, the Obama narrative breaks down from there as further research readily reveals that home prices have recovered despite a massive drop in overall homeownership rates. 

Fall in homeownership continues amid

 

Moreover, the folks that seem to have been hit the hardest are the ones that were the biggest supporters of Obama's "Hope & Change" agenda.  Per the table below, homeownership rates among "Young Adults" and "Blacks" are down 18% and 16%, respectively, since the peak in 2004.  And while that's definitely a big "Change," its somewhat lacking on the "Hope."

Homeownership

 

But if "mainstreet" Americans didn't drive Obama's housing recovery then who did?  Perhaps the following Bloomberg headline can help answer that question:

Blackstone

 

Yes, the benefits of Obama's "housing recovery" accrued to none other than his "archenemy," Wall Street, which poured $100's of millions into single-family houses on a weekly basis and $10's of billions over the past couple of years.

Adding insult to injury, this massive pace of investment has re-inflated the housing price bubble, making it, once again, nearly impossible for "Young Adults" and "Blacks" to afford homes.  And, unlike in 2007 when subprime lending basically erased the need for down payments, homebuyers today are forced to "have some skin in the game" before banks will blindly give them $100,000's of dollars. 

But, with the average American having about $3,000 in "financial assets," we're not sure that's feasible.

The typical total financial assets of most renters has declined

 

But, as we always say, who needs facts when narratives are so much more fun.

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Bob's picture

But it was kinda a change.

knukles's picture

But he said today that everything was Awesome!

boattrash's picture

But his wife said that Trump killed Hope...I soooo confused.

BabaLooey's picture

Funny.....

ALL I SEE when I turn on the alphabets are SUCCESSFUL BLACK FAMILIES in commercial after commercial after commercial....

Owning houses, having all sorts of expensive toys. Cars. Insurance. 

I travel a lot. 

I don't actually SEE these people IN REAL LIFE.

I wonder where they are?

NoPension's picture

I especially like the car commercial, where the little black boy is telling Santa about the new Lexus he wants.....and Dad is in the background getting a nut.

Thank god for gummit jobs.

Chris Dakota's picture

The big problem is all these kids with student loan debt will never be able to buy.

Dead Canary's picture

My favorite drinkin buddys.

Also, Johnny Walker and Jimmy Beam.

hog eye's picture

I must admit, I now have hope.  I hope O'Bummer gets the fuck out of government and never comes back.  He's fucked up everything he's touched!  I'll bet he doesn't even repair his divots on the golf course.  He just walks away leaving the fairway fucked up for the next guy.  What an asshole.

nmewn's picture

Crushing blacks sounds so, oh I dunno, raaayzis...I'm goin with the fake news angle on that one and sayin it was his white half ;-)

GreatUncle's picture

+1 knuckles for the sarc ... Golf will never be the same though.

Obama bascially from not doing anything threw all the blacks under a bus.

Who do you feel sorry for? Actually for Obama but why?

A 300 yard headshot on a fucking golf course is easy and there are probaby loads that could make that hole in one.

What is unravellng, and he tied himself into this not me, he thought he could stitch people up who were hoping they could improve their position.

Truth hurts, tag it as fake news I don't mind the bullet is the truth.

 

consider me gone's picture

Well it is awesome, only it's not. It's complicated.

Cassandra.Hermes's picture

Guys seriously Mortgage rates: November 2016: 3.77% November 2008: 6.09% Can i say you are liers?

Jethro's picture

Rate hikes will (should) crush mortgage lending.  HIkes should also drop residential RE prices as well, shitcanning using your house as a piggy bank.

Wilcox1's picture

Businesss sense is required to help people become homeowners. obamma has none. Therefore, no help.

Cassandra.Hermes's picture

It is not Obama fault, 

Blacks, Young Adults don't want to live outside of cities, it is scary to be black in suburbia
NoPension's picture

No, it requires effort.

Case closed.

canisdirus's picture

We need to have jobs, which we generally find in cities. I wouldn't live in a leftist hellhole if I could find work in my industry in a rural area.

The fact houses are completely unaffordable on anywhere near an average income in any major city with work is the biggest problem.

Golden Showers's picture

Well, Bernie got into a good house, so what's the problem?

http://heavy.com/news/2016/08/bernie-sanders-new-house-photos-pictures-l...

Hey Jill Sanders! How much for head?

Jethro's picture

She would probably hook you up for a bucket of kitty litter.

Neochrome's picture

Are you going to believe some numbers, stats, charts and graphs or solemn word of your president Barack Hussein Obama that it's all good?

GreatUncle's picture

Gimme the numbers, stats, charts and graphs please.

Anything but the other.

NewHugh's picture

We helped some folks.  The rick bankers...

BabaLooey's picture

Dude...you can edit your post for spelling errors.........................................here.

HRH Feant's picture

I have two young family members: one lives at home with daddy. The other finally moved in with the baby daddy. Are they married? No idea. I am guessing not. The baby momma doesn't drive, my niece, age of 26ish, still waits for mommy (age 49) to drive her and my great neice and great nephew everywhere they need to be. I left home at the age of 15 and was in boot camp at the age of 17. I don't understand this bullshit of staying home with mummy and daddy. WTF!

How do you motivate young people that are spoiled brats because of their useless parents? I have no idea. I was not raised this way. Guess by the third kid things changed.

Bob's picture

The world has infinite patience as a teacher.  It's amazing that way. 

And you don't have to do anything. 

Well, except maybe get out the way.

HRH Feant's picture

Great advice. Thank you.

techpriest's picture

It really does sound like a failure of the parents. If they are being cared for in that way in their 20s, it will be very difficult for them to learn to take care of themselves.

Ultimately, get out of the way, if they come to you looking for help keep it to your terms only, if at all. My parents have taken in family before, and just as often had to kick them out a while later.

HRH Feant's picture

I know. It is sad because I am the eldest and my parents didn't baby me, at all. They were hard core. Not sure what happened between me and the younger siblings.

I am willing to have a house guest for up to 3 days. After 3 days, my rule is they have to sign a lease. Why? So I have legal recourse, and a legal contract. to kick their lazy butt to the curb and outta my house and off my property.

The sad part is my sister poisened the well. Hard to have a relationship with people that think you are the devil, incarnate. How am I the devil? I speak my mind. Never toed the line. An Auntie (me) also has a stack of almost 100 pounds of silver. Who is going to get that silver? Right now I am thinking about donating it to the Good Will upon my death.

NoPension's picture

The Government says they are still yo kiddies until 26.

JHFC!

Mine (31), left home at 17 (basic) ...and never came back!
Makes about $85g and accelerating.
I refused to help him with his homework. Learn it or fail. If you fail, you're a failure...and don't deserve advancement. Sorry kid....best to learn it now. What's it gonna be? Flip burgers or mow lawns? Or an office with ac?

I took him with me a few times, on some commercial construction jobs....he didn't care for it too much! That, and a tour in the desert, motivated his ass.

I love him, and he knows it.

canisdirus's picture

In your world, when you were young, it was financially feasible to do what you did. A 15-year-old couldn't afford to live on their own short of homelessness these days.

As for the bad choices they made, that's all on bad parenting and partially on the government. The unmarried baby makers are probably in a better financial position by being unmarried (government benefits) than they would be if they got married.

I know a number of young people that have played this game. One partner is disabled or partially disabled and the other is marginally gainfully employed. If they were to be foolish enough to marry, they'd lose benefits and be at financial risk should the relationship end. Short of a military guy (which are choice marriage candidates due to guaranteed income as long as they're in, along with the ease of working the system to make him your slave), a totally disabled guy with a consistent income is also in high demand among non-working poor women because it's guaranteed income that follows you.

From a moral standpoint, I am troubled by it, but I totally understand why they do it. Nobody in my circles is worse off than poor young working couples that were foolish enough to get married. Today, due to various laws and entitlement programs, marriage is only financially prudent for wealthy and high-income people.

Blame the entitlement, economic, and legal situation, not the people that work within the confines of it.

NoPension's picture

I've got a buddy who married a single mother of two, and in the process lost about $900 a month in bennies.
You are correct. The system is getting exactly what it pays for.

DosZap's picture

Why do you think welfare leeches never marry?,for every kid them dump they get free med, and apprx $10k a year in bennies.

One woman in Chi town, has 18 children,by 8 different sperm donors and collects well over a 100k a year, free food,med, housing assistance, the FULL boat.

actionjacksonbrownie's picture

But... but...  FULL EMPLOYMENT!!!

ThrowAwayYourTV's picture

A house these days is just something used to hedge against you in case you default on a hospital bill or tax. Or anything else. Buy a house for 200K and pay on it for 10 years and you will have paid 200k for it 20 years before it's paid for.

Get sick in 10 years and they take the house worth 200K, your 200k that you paid and its, bank $400k, You 0.

GreatUncle's picture

Don't have the house ... or a funeral plan ... why pay the snowflakes taught me/

Stepping over dead bodies because the system would not treat you is real fucking shit for the snowflakes more than me.

Waaaaaaaaaaaaaaaahhh got ya you little fuckers ... I want my body to haunt you for decades ... or you can feed me to the dogs and help dog starvation, go on  cremate me,  I can choke you death too. That little bit of ash ... its toxic guaranteed to cause death.

Snowflakes really need to learn how to lose, it is a common occurence.

 

foodstampbarry's picture

America is now completely niggerized. All gone to shit. FFS get Trump in there now before it gets any worse.

friendly manitoba's picture

well prices are back to where they were in 2007 when you could move in for 8 years without a down payment, monthly payment, property tax or utility bill

i doubt these losers that stole $100,000s each can buy a bag of weed on credit let alone a house or bike

forget the birth certificate - lets see his report cards

"cut it out ". ...... oooohhh. scary

what a piece of work - no wonder his brother doesnt like him.....

G-R-U-N-T's picture

"Unfortunately, as is often the case these days, the "hard data" paints a slightly different picture than the "narrative" being pushed by Obama and his staff."

After 8 years of this maniac, who in their right mind, doesn't know their all full of shit???

MEFOBILLS's picture

How much ink has to be spilled on the housing bubble before the "tards" in government get it?  The real answer is that Oligarchy will never back down peacefully.

Housing bubble has many authors:  Clinton who signed GLB, thus undoing Glass Steagall.  Clinton who gave MFN status to China.  Wall Street who green- mailed american industry to off shore.  China which then bought up U.S. treasuries with their excess dollars, instead of mainstreet American goods.  China Wall Street gambit then holds interest rates artifically low.

Chicago and Libertarian hypnotism that markets find optimal prices, and that finance is part of the productive economy.  (Finance is a drag - a parasite - a rentier class.)  This hypnotism then blinds the sheeple.

Housing prices are pushed, as new bank credit channels toward this sector.  Land and Housing are sticky in that new stock does not come on line at the same time as demand (money).  Land locked housing areas that are fully built out, have prices that rise faster than those areas where new stock can be built. Hence, areas like Texas which have open land, are not impacted the same as other land locked areas.

Bernanke style QE keeps the housing debts in place, rather than writing them down to the ability of economy to pay.  QE ends up swapping for MBS (mortgage backed securities) and other debt paper like TBills.  This continues to hold interest rates low, the same as China gambit. 

Robo-signing scandal is swept under the rug, as the evidence is erased after QE swaps.

Housing prices remain high, and jobs are exported.

No-Shit-Sherlock.  The young cannot afford to buy homes, and start families.

Hudson puts this sort of junk economics in context:

http://michael-hudson.com/2016/12/innocuous-proclaimations/

If we take it to its logical conclusion (Junk Economics), where does it end? Totalitarianism?

It ends with economic planning shifting out of the hands of democratic government into the hands of the central bankers and the Treasury. They will do to Europe what they’ve done to Greece. They will do to the United States what they’ve done to the Baltics, who celebrate austerity and mass immigration and demographic collapse as if it is a miracle instead of economic disaster and suicide. 

 

 

 

GreatUncle's picture

The problem is we are taught the oligarchy is our friend so we don't kill them - PRIMARY REASON.

An oligarch is no better a person they were born with a silver spoon in their mouth and they will never give that up.

Xena fobe's picture

There used to be laws regulating monopolies. These laws need to be applied to REITS and other multi unit residential RE operators. Concentration of ownership and the resulting condition of artificial scarcity of housing is bad for the market and consumers. 

Atomizer's picture

2007 all over again. Thanks Obama, we are going to buy new properties without the use of banking finance. We will just buy back the variable loan rate the the cunts can't afford. Do you remember this was Bush fault and the Federal reserve lowered rates so the dealers could rig FICO scores to inflate borrowing interest rate.

A few days ago received a letter from American Express for one of the boys at 6.99%, it hit the shredder. Then received a letter from United PLUS mileage. We have to redeem our mileage points in magazine orders. Little do the stupid advertising people know, both kids have already booked an international flight. No points to buy a liberal magazine.

/Hahahaha

ItsSnowingInColorado's picture

One of the solutions to the housing affordability crisis, is simple.

Changing the system so that property rights > zoning laws. That would increase supply, and could bring down building costs.

Good luck trying to get the government to regulate housing less though.

It is the one area that I really feel for my kids/grandkids. Well, that and mandated healthcare expenses. 

Via Gallups Report-  No Recovery: An Analysis of Long-Term U.S. Productivity Decline 

The core problem with the housing market is that it is not allowed to function as a market at all. In a healthy market, an increase in demand for a product leads to a greater supply and prices stay the same. In housing markets, demand increases as new households are formed, which results from natural population growth and immigration. The problem is that new supply is massively restricted, leading to inflation.

Local zoning boards and planning agencies have almost complete discretion over what gets built where, and they are under intense political pressure from homeowners’ associations and other groups to block development in high-priced, low-density areas for cultural and economic reasons. Culturally, homeowners clamor to preserve what they regard as the “character” of their communities, by which they mean things like traffic, the race and social status of their neighbors, and environmental amenities like green space and scenic views.

Additionally, homeowners have strong economic interests in restricting the supply of housing in their neighborhood for two reasons: having more people, especially people with young children, requires a higher tax rate on property, and even more fundamentally, greater housing supply in their neighborhood lowers the value of their unit relative to the prevailing scarcity.

Thus, even as housing prices increased, U.S. population density actually fell from 2000 to 2010 for metropolitan area residents as newer housing units were pushed further out into the distant suburbs.

edifice's picture

How much does it really cost to slam up one of these generic chicken coop garage-houses, anyways? $50,000? Prices are way overboard.