Thursday, November 17, 2011

With Workforce Participation Declining, and Owning a Home Based on Two Incomes, What Next?

In the article embedded below,  Charles Hugh Smith shows why the Great Recession isn't ending. What's important here for the US and Charlottesville Area Housing Market are charts 5, 6, and 7: participation rate, which started rising in the '70's, when more women entered the workforce.  At that point, owning a single family home became based on two incomes.  Current wages are at the same level as the last decade, but homeprices have skyrocketed.   

The US  triage of printing money and going further into debt doesn't address the problems of lack of jobs and the change in kind of jobs available.  The burst of the debt-fueled housing bubble, combined with the work issues, are a paradigm shift for our economy and homeowning.

Related:
When Will the Charlottesville Area Housing Market Enter Recovery?
Effective Negative Equity: Why the C'ville Area Housing Market Could Stagnate for Years
 

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