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Doctor Housing Bubble 11/06/13
How Federal Reserve and banking policy is accelerating income disparity: Financial obligations ratio soars for renters while declining for homeowners. Problem is, we have less homeowners.Current housing policy has been a major windfall for large institutions and investors. Banks enjoyed a continuous stream of good years as rates slowly dragged down and people became serial refinancers. Good way for banks to earn fees courtesy of the Fed’s QE maneuvering. However the results have been negative for the large number of working and middle class Americans. Many of you have encountered investors bidding prices up on properties here in your own backyard but this trend is nationwide. In some areas the bidding has been more aggressive (i.e., San Francisco) but overall, the nation has seen a big jump in home values. However new data continues to highlight how this current policy is really benefitting a small group of Americans. While rental vacancy rates reach decade lows, homeownership rates are also reaching multi-decade lows. Not hard to do when a large portion of the market is coming from the investor crowd.
http://www.doctorhousingbubble.com/financial-obligations-ratio-fed-renters-and-homeowners-united-states/#more-6976