The coming housing crisis

[ThomWV]

All of these people being tossed out into the streets as more and more homes loans are going into foreclosure, where are they going to live? A guy generally won't move directly from a palace to a cardboard box. Maybe they couldn't make the multi-thousand-dollar payments on their old McMansions but they have to live somewhere. The question is, where?

While builders were going nuts putting up palatial homes there were very few modest homes being built, you know, the "affordable" sort that your mother and father bought and you were raised in; you remember, 3 bedroom, maybe 2 bath, maybe not. The person who couldn't make the very large reset house payment can still come up with a pretty healthy monthly rent check and that means that you can expect inflation in modest home rent prices as previous 'owners' rejoin the rental market, but this time with relatively fewer more affordable houses.

[BB1]

1. They'll have to live in Texas.

It's the only place left in the world where there is sufficient room to store all people of the world. All six billion of them, as long as you store them as seen in NYC.

[ThomWV]

2. Guess its time to buy stock in house-trailer manufacturers.

Double wides will be coming back into style.

[maseman]

18. That's actually not a joke

Manufactured housing usually does great when the economy sucks, for obvious reasons. As does rental units.

[SoCalDem]

3. Out here apartments are NOT being rented in the numbers you would expect

First & Last month in advance, security deposits, cleaning deposits, no pets, extra deposits for kids under a certain age..and CREDIT CHECKS out the wazoo..

When my son rented an apartment a few years ago it cost hom $3K up front, before he moved a stick of furniture in..

People who are in dire straits are probably bunking with friends or family and have their stuff in storage or have sold it...and probably many are planning to leave the state & start over somewhere cheaper

[El Pinko]

4. The bulk of the foreclosures are on modest homes bought for insane sums in FL and CA

A run-down 1000 sq ft 1960s 2 bedroom tract house still goes for half a million and up in the SF bay area, $400K and up in So Cal.

The next step down is a dumpy apartment - a 2 BR is generally about $2K in SF, $1500 in bay area burbs, and I'm not sure about So Cal, but probably same range.

Quite remarkable since median household income in CA is only about $55k, and even in high-priced areas like SF and Silicon valley it's only $80k.

I guess the zillionaires and the investors are driving the prices up for everyone else.

6 to 10X median income for an entry-level house is insanity.

[DaLittle Kitty]

5. ALL The Makings of... A WORLD WIDE ECONOMIC DEPRESSION... Chaos and Anarchy...

A Blackhawk Flew over my home this morning at about 600 feet... Blackwater IS In Place... To keep US ... i n our place...

[Snarkturian Clone]

6. slow down

:crazy:

[ConcernedCanuk]

7. "slow down"? Black Hawks and other USA military now patrolling our border.

.
.
.

Do I feel safer now?

Not one bit.

[dajoki]

8. Good question...

I am trying to figure this out right now, as I face foreclosure. We do not have a palatial home, but one that is comfortable. We scrimped and saved to buy an old rundown property which we toiled at with our own hands, sweat and blood to restore. I had an accident at work which left me permanently disabled, a few years later my wife lost her job and last year our youngest daughter became seriously ill and after a lengthy hospital stay had to move back home with us, where she is recovering. This chain of events has taken everything we had and we fell behind on our mortgage, so now the lenders want the home which we built almost entirely ourselves. But I am putting up a fight!!

[renate]

11. I'm so sorry....

I hope your daughter's recovery is smooth and quick.

And I hope you win your fight. :hug:

[dajoki]

15. Thank you very much renate...

Words of encouragement like your's really do help.:pals:

[pushycat]

9. Where will they VOTE? Where will they REGISTER to VOTE?

[kwassa]

10. I hear FEMA has some used trailers ....

[w8liftinglady]

12. I wonder that,too-I know multiple people who share homes

three generations living under one roof...many grandparents have taken in grandchildren,children,neices,nephews...you get the picture.

[bobbolink]

13. Actually, I think it would be a good think for most of these people to end up homeless.

They wont' tolerate shelters very well, as used to plenty as they are, so I'm guessing there would be more done about homelessness rather than just telling people "Go to a shelter".

[Deja Q]

17. That's a bit of a generalization...

For many, you're undoubtedly 100% right, but nothing is sadly so simple in scope.

[ProdigalJunkMail]

14. banks will panic...

and those homes that they now 'own' will be on the market for a steal. it is already happening near us...nice neighborhood...20 some odd lots...nine completed homes...all listed initially over $500K. Signs went up two weeks ago...BANK OWNED. Dropped by out of curiosity to see the prices...all but one are now under $350K...and when there is no movement on THOSE...look sub $300K

sP

[IDemo]

16. If I were a developer, I'd start building these->

http://www.tumbleweedhouses.com/

I'll bet the market for small, inexpensive to buy (not to mention heat) homes will be the next big thing. That is, if the migration to the undersides of bridges doesn't happen too quickly.

[Dave_Fl_50]

19. Debtors prison

[prolesunited]

20. Extended families or groups of people

could live in the McMansions and pool their resources. I think they are going to have to since "affordable housing "often means living in crime-ridden areas.