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?
What about a Stock Market Bubble?
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.