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New Housing Boom: Duplexes, Triplexes, and Quads

Written by Gary North on February 13, 2013

We have heard the good news. The housing new home market is booming. It is, indeed: for rental units.

But what about single-family homes to sell to the middle class? Not so much.

Home ownership is lower now than it was in 2007.

This means that the construction boom is targeting renters. Why? Because the families that would normally buy a home are still out of this market. The recovery has not made them eligible for buying housing.

But what about the decline in foreclosures? Lenders are not foreclosing. But they are still sitting on millions of empty homes or homes occupied by owners who stopped making mortgage payments years ago.

The buyers are investors. They are people who see a major opportunity to lock in low, 30-year mortgage rates and then let renters pay off these mortgages.

This puts the Federal Reserve to work for you. Bernanke inflates. Rates remain low. It’s lock-in time!

Then is the housing recovery real? For investors, yes. The big money is getting in on the deal.

Continue Reading on finance.fortune.cnn.com

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7 thoughts on “New Housing Boom: Duplexes, Triplexes, and Quads

  1. timeforjustice says:

    There is a Housing Recovery? Where? I'm not seeing it where I live.

  2. I'M guessing that it is for the new citizens that Obama gave citizen ship recently ,Gosh ,I heard that Obama pays them $60,000 a year ,So i'm thinking those new items are for them ,But not so quick ,what happends to the units ,and the owners of these units,when Obama can't afford to pay these individuals any more ,they get to stay ,pay no rent and the property becomes theirs ,by Execitive order ,I'm supposing .So if you're looking to cash in on these units ,better be careful ,Those are just thoughts ,looking down the road and kicking the can a little futher might be disasrerous for the owners ,I could be wrong but look who gets new Jets and Tanks ,Our ememy Egypt ,Maby Muslimns will occupy those units ,I herd in Dear Born ,Michigan every drive way where the muslimns live is parked a Mercedes ,AND i WAS TOLD THAT THEY ARE ALL ON WELFARE ,.THERE AGAIN eXECTIVE ORDER MIGHT BE NECESSARY FOR OWNWERSHIP OF THESE UNITS .BUT who am I to say ,I'm just a tax payer .

  3. North cherry picks stats to make a point. 2007 was the height of the housing bubble. Historical home ownership rates are around 61-63%. In 2007, they peaked around 67-68%. No one seriously believes that home ownership rates should be higher than 2007. That being said, I do agree w/ him that being in the rental business is where to be.

  4. I can't wait until the house of cards falls , it shouldn't be long now !

  5. Why? UN Agenda 21 coming your way.

  6. Quite frankly, I'm surprised CNN even printed such an article. It actually tell the truth. And of course, since the Dodd-Frank bill pretty much destroyed opportunities for most average Americans to acquire loans, people have to rent to put a roof over their heads.

  7. tell=tells the truth.