Jul
12

California’s war against the middle class: Massive income inequality pushes a growth in crowded rental households and lack of income growth.

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One of the memes that continues to spew out of the mouth of the Taco Tuesday crowd is that owning a home is the ultimate goal in life because that is how they grew up.  You buy a home that stretches your budget to the extreme, work on the beer belly during the weekends, and slave away for 30 years hoping no curve ball comes during that time.  And you wonder why mobile Millennials are saying “no way” to that vision.  They also assume the past is going to reflect the future.  Even in San Francisco with a well educated tech crowd, many are going down the renting path because owning a home is financially insane.  What many fail to factor in is that California’s population is going to become much more wrinkly and old while our younger workforce is getting paid much less in inflation adjusted terms.  So it should come as no shock that 2.3 million grown adults are now living back home with mom and dad.  We also have a roommate trend where people crowd into homes like sardines to split the rent.  In many gentrifying hipster zip codes the neighborhood looks like a car lot because of the number of people living in one house.  If we are throwing labels around like the “war on drugs” then there is a war on the middle class in California…

California’s war against the middle class: Massive income inequality pushes a growth in crowded rental households and lack of income growth.

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