The IMF frets about multi generational living as being some sort of subversive attack on debt and bank profits. But we now see that conservative states and nations have even been thinking about, and even creating multi generational concepts.
In Utah, not exactly a flaming liberal state, multi generational living is on the rise. One out of every 21 families is multi generational in Utah.
We have the case of Australia, where talk was about creating a multi generational city. I guess with the bubble in real estate ready to burst, having an extended family buying a house makes more sense than nobody buying a house down under.
And in the western US, multi generational centres and entertainment facilities are being created. Capitalism is still at work, but not in the way that big finance wants.
I have noticed that studies are out showing that the distribution of wealth is dismal for the bottom 80 per cent of the nation. In fact there are studies showing that that trend is getting worse. Worldwide, the top 10 per cent of adults own 85 per cent of the assets. And in the United States alone, the top 20 per cent control 84 per cent of the wealth. This US trend is catching up with world trends. That is not good.
Even the Roman Empire tried to control wealth being accumulated at the top by limiting the amount of land one family could own. We are getting to be worse than the Roman Empire! It would be called communism by some to limit property, to trust bust land cartels today, or downsize the TBTF banks.
So, since government is ideologically opposed to any serious redistribution of wealth, it is necessary for households, individuals working together, to take the creation of wealth into their own hands. Ground is being lost every second as government abandons social programs or pares them back. Having just income really means little in terms of long term family prosperity. All income does is to increase liquidity. Wealth is the measure of solvency of a household.
More credit certainly is not the solution to wealth, in most cases. It is a temporary solution to liquidity, but as we see from the banking system, that debt driven liquidity problem is a major drain on world prosperity. Since government is determined to pile up debt helping the banks, perhaps the most healthy offset to that debt is to get the bottom 80 per cent to accumulate wealth through the self interest of multi generational living.
It seems like a no brainer to me.
I had a guy post to my Zillow article that living in extended families reeks of collectivism. That of course, is absurd. People have always tried to cut costs. Is it collectivist communism for companies to merge in order to cut costs? Or is it just collectivism for families to merge. What a load of propaganda.
Likewise the propaganda to label young people who live with their parents as losers is just a ploy to get into the wallets of these young people. Rents are going up, as people aren’t buying houses. Investors are drooling over this and want the kids to come out of their households in order to create even bigger profits. But we have the example of Italy to go by, where 60 per cent of young people 34 and younger live with their parents. No shame to do the sensible thing in Italy. But in America the shame is driven by greed. That is a lesson that all families need to learn.
And the obvious statistics don’t lie. If you move out, rent an apartment on your own or with your spouse, you young people will have little chance to accumulate wealth. If you stay at home with parents, even if married, you have much greater chance to spread out the expenses and prosper. Don’t listen to the folks who have only their self interest at heart, and who want to make money off of you because you have not been properly informed.
The idea that multi generational housing is just for ethnic minorities is foolish. There have to be a few white guys in that bottom 80 per cent of adults don’t you think? Don’t fall for the financial predators and their scams and their propaganda of greed.
A Zillow representative posted at my Zillow article, stating that the company does not take a position on multi generational living:
Katie from Zillow here. I work closely with Stan Humphries. I just wanted to clarify that Zillow does not have a position on multi-generational housing. It is certainly a good choice for many families, for both economic and non-economic reasons. What we addressed was involuntary doubling up because of the recession, and how the trend affects the housing market. Statistically, the incidence of households doubling up has increased by nearly 11% from 2007 to 2011, according to the Census. For adults aged 25 to 34, it has increased by nearly 26%. This takes a lot of potential homebuyers out of the market, and buyers are essential for an eventual housing market recovery.
Yes, these folks are essential to an eventual housing market recovery. But the last housing market recovery saddled the borrowers with mortgages that could not be paid back. Perhaps an easy money fix is what Zillow wants? I don’t know. I am of the belief that many jobs replacing older high paying jobs that have gone away are actually not the kind of jobs that will get you into an overpriced house. So, I question what Zillow really wants. Perhaps Zillow should take a stand on the securitization of mortgages and on the danger of easy money toxic loans. That would be great and would affirm Zillow’s “concern” for main street families.
But I am thinking that the jobs being created don’t match the real estate cost, even if you have a job. At least many are working for wages where they need to make a commitment to multi generational living. The time has come for change, and while being in debt up to your eyeballs may make you comfortably numb for a while, that state described by Pink Floyd is truly unsustainable.
It takes boldness to go against the multi million (or billion) dollar media push to get you to overspend for a house. As long as securitization of mortgages is legal, thanks to the repeal of Glass-Steagall, then the threat of irresponsible lending clouds the entire housing market. Time for a change, indeed.
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