..........people couldn't afford their rent or mortgage anymore? And people had to start doubling up pooling their incomes and they still couldn't afford to make ends meet? Because that's where we're heading. Where's it gonna end????
2006-11-29 09:39:29 · 10 answers · asked by Anonymous in Social Science ➔ Economics
Shannon W - I'm not talking about me here. I'm talking about my children and my best friend's children and everyone in our area. My son's in laws have gone to school and have good jobs but it's not enough today. My best friend has 4 children and they cannot afford to live on their own and they all have good jobs. Maybe where you live everything is hunky-dorry but not with the rest of the country. Things are bad out there. The electric company has raised the rates 25% twice in 2 years and that's how it is with everything while the pay for certain skilled jobs gets lower every year and so do the raises.
2006-11-29 21:39:17 · update #1
that would be bad, but it's economics, it can only go so high before it goes down again............
2006-11-29 09:41:23 · answer #1 · answered by altmetal4christ 3 · 1⤊ 0⤋
You've got a serious logical flaw there. Rent and house prices are going up because and ONLY because people are bidding up the prices. In other words, the money is there, people are willing to pay it, so the prices are going up. That's called "demand". Despite what you say, people CAN afford their housing -- they prove it everyday beyond any debate by paying the rent and buying houses, no matter how much they may complain. if they were not doing that, the prices would already be dropping like a stone.
If we were to reach a point where people truly cannot pay rents or mortgages -- then prices will NECESSARILY drop to the level of equilibrium, to where people can afford it again. There is no other possibility. If everyone "doubled up" then that means demand for housing would drop 50%, do you see that? Such a huge drop in demand would send prices crashing through the floor. Housing would become very cheap and people would quit doubling up -- though in reality things would never go that far.
2006-11-30 01:55:22 · answer #2 · answered by KevinStud99 6 · 0⤊ 1⤋
There will also be re-finance offers. These will get people further and further in debt but they will not be homeless. A roof over your head is the most important amenity. The cell phone, cable TV, Internet access can be sacrificed. The car can be given up too.
2006-11-29 17:45:03 · answer #3 · answered by Steve P 5 · 1⤊ 0⤋
The first step would probably tracking your expenses to see why ends aren't meeting. perhaps you need to alter your spending a bit to fit in the most important expenses such as housing and food. We as humans in the USA are so used to having things that we might be losing our survival instinct. I'm sure you could live without the internet connection you are on, or the cell phone you may have, or without a new outfit, etc. I'm 28 y/o I have been paying on my house for 2 years now, and my wife and I work full time and go to school full time. It is a lot of work, but we find value in it, and think the future is more important than today.
2006-11-29 17:43:00 · answer #4 · answered by Shannon W 3 · 0⤊ 0⤋
The market will raise and lower to what ever is going on.
Coach
2006-11-29 17:46:37 · answer #5 · answered by Thanks for the Yahoo Jacket 7 · 0⤊ 0⤋
Mass bankruptcy. Then banks are stuck with non performing loans, real estate prices melt down, the economy starts to tank... new leaders are elected and the boom - bust cycle begins again as it always has.
2006-11-29 17:43:22 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Tenements and squatters.
2006-11-29 18:03:30 · answer #7 · answered by braennvin2 5 · 0⤊ 0⤋
There'd be a lot of foreclosures.
2006-11-29 17:50:53 · answer #8 · answered by Answerer 7 · 1⤊ 0⤋
The Bolsheviks know.
2006-11-29 17:41:42 · answer #9 · answered by tridentoftime 3 · 0⤊ 0⤋
MIGHT HAVE TO PITCH A TENT
2006-11-29 17:52:34 · answer #10 · answered by Anonymous · 1⤊ 0⤋