California Housing Bubble
I grew up in California, in a working class neighborhood in the east bay area. Everyone I knew came from blue-collar familys where the father was working in a labor-intensive job. That same neighborhood now has homes selling for $900k+. This is higher than just before the real estate crash back in 2008.
Think about the income required to purchase a house, going by the standard of 2-3 times annual family income would be in the range of $200-330k. How many people are being priced out of this market? The median income for a family in this same town in 2007 was 78k, nowhere near what is needed to buy the average priced home without a large down payment.
The lowest price rentals in this neighborhood for a 1 bedroom is $1500-2000/mo. These rents and house price go higher as you move closer to San Francisco or down the coast a 15 miles to Silicon Valley. Think about all the newly graduated college students, the teachers just starting their career, where will the live and will they every be able to buy a home of there own?
One of the latest trends out there, some are finding alternative living arrangements. One of the examples of this is people living in tents they rent for $900/mo. Another trend it living in 40’ x 20’ shipping containers, that’s right what you would see a on the back of a cargo ship. The video below shows some young people looking for an alternative and a little more affordable living arrangements.
These ingenuitive youth have plans to monetize his adventure through his website, Boxouse. On Boxouse, he sells fully furnished box houses (for $20,000), DIY kits, and building plans.
Now he just needs the box living revolution to catch on. And as to getting approval from the government for cargotopia: “I’d rather ask forgiveness than ask permission,” he told Bloomberg.
You have to watch this video.