The housing bubble (part deux) with resultant “rental tax” thanks to Fed policies offering record rental incomes is the new source of cash flow for retirees with means, who have given up on bonds yielding next to nothing and become landlords with large portfolios of rentals…and soaring housing prices alongside declining wages will ensure young can’t buy the homes they live in and instead offer the boomers lifetime renters (the new serf class). All thanks to the Federal Reserve’s plan to financially engineer America to ensure the minority class of asset holders never get caught holding the bag at the expense of the vast and expanding majority holding nothing!
Details…
Since ’00, the US core population of 25-54yr/olds has risen by 4.6 million (4%) and full time jobs among them have declined by a half million (-0.5%).
Since ’00, the population of 55+ Americans has grown by 27 million (+45%) and full time employment among this segment risen by 10 million (+93%).
What about those deemed “not in labor force”? Clearly, a large portion of this 24 million (+35%) surge of “NILF” is coming from the worst possible source, the 25-54yr/old core of the population…not just boomers retiring.
Since ’00, the growth in new homes has been nearly equal to the number of full time jobs created (a complete reversal from the previous 40 years)…and based on the linked charts, on a net basis, none of the growth in homeownership has been among the 25-54yr/olds. That means all the 11 million new homes (net) have been purchased by the 55+yr/old growing population / growing full time employment base. Record rental income is the new source of cash flow for retirees with means, who have given up on bonds and become landlords with large portfolios of rentals…and soaring housing prices alongside declining wages will ensure young can’t buy these homes (net) and instead offer the boomers lifetime renters (the new class of serfs…thanks to the Federal Reserves policies).
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