THE DECLINING ECONOMICS OF THE MIDDLE CLASS: OBSTACLES TO HOME OWNERSHIP

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The middle class is shrinking and as a result we see fewer first-time buyers, lower homeownership rates and thus increased demand for rental properties. For real estate investors, the contraction of the middle class is a reality which cannot be ignored.

“The American middle class is losing ground,” said the Pew Research Center in a new study. It pointed out that “the middle class made up 50 percent of the U.S. adult population in 2015, down from 61 percent in 1971.” It also said that the middle class earned 62 percent of our income in 1970, but only 43 percent in 2014.

Although the middle class is getting relatively smaller it still needs housing. Since the purchase of a home is increasingly difficult renting becomes the major alternative.

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Keith Kaplan

CalBRE #01933707
Sothebys International Realty
9255 Sunset Blvd.
West Hollywood, CA   90069

keith.kaplan@sothebyshomes.com

310-646-7791

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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