The Thin White-Picket Line: The Fight for Housing is Real for Average Americans

Written by Bryan Lutz, Editor at Dollarcollapse.com:

In years past, the American Dream has meant getting a good paying job, having a family, and owning a home (with a white-picket fence). Usually in that order.

Except that order has slowly broken down.

For the past 50 years, the affordability of almost every asset has slowly been consumed by those who have easier access to credit.

When it comes to the vast majority growth from by the Top 20 to Top 1%, it has not been more production that has allowed them to acquire more assets, it’s been the availability of credit.

Once a person reaches a certain amount of wealth, credit becomes easier to acquire, and with that credit, more assets.

Here’s what that has looked like:

via Charles Hugh Smith @ Oftwominds.com

As more assets are acquired by those who have easier access to credit, they get richer.

Not only that, as more money is printed, the price of those assets increases.

Some stocks are worth more.

Some businesses are worth more.

And homes, or real estate are worth more.

Now for the average American, the gap is so large that our children’s children are creating smaller families, fighting to keep jobs while buying smaller homes.

The fight for a literal roof over their head is heating up; owning a home has become more than an uphill battle.

First-time home buyers are at the lowest in 20 years.

Even with the inventory homes on the market increasing, there are very few buyers. Nearly 500,000 more sellers than buyers.

When you consider the past 10 years the gap doesn’t seem that small, but when you expand your timeline, it’s much bigger.

Buying conditions are at the lowest in 60 years.

Who benefits?

Landlords.

For those seeking to own homes, it is a losing battle. With higher federal fund rates, mortgage rates and uncertainty in the job market, renters are staying where they are.

And that means, vacancy rates are down, ratcheting up the price for those looking for a roof over their head.

If you’re an average American, you’re facing a thin white-picket line when it comes to shelter – even improving your station in life.