Posts Tagged ‘Wealth Disparity’

Addendum To Denial

January 11, 2021

            In the previous post, Welcome To Denial Ohio Jeff Hall Mayor (1-8-21), Analysis makes the claim that Kent Mallett’s report (East Main Street building to become Newark thrift store, not homeless shelter, 1-8-21) was really more about the “growing homeless population” than about the former Family Dollar store recycling into the new St. Vincent’s thrift store. A report by Melody Hahm appearing in Yahoo Finance (who knew?) gives a curious insight without the absurdity of “counting the homeless,” since we know that few will be inclined to self identify as “homeless.” Most are inclined to self identify as middle class, though they are not. So all you “middle class” out there, perk up. Hahm’s report is about you. Entitled “Middle-class homeowners will get ‘priced out permanently’: real estate investor Grant Cardone” it spells out the current road to the American dream paved with, well, Capitalist intentions. “The number of homes for sale reached an all-time low in December, as buyers remained active and eager to buy even during the holiday season.” “But given the low inventory and the quick turnaround of homes, middle class Americans are finding homeownership more inaccessible than ever, according to Grant Cardone, a real estate investor who manages a $1.4 billion portfolio of multifamily properties and also stars in Discovery Network’s (DISCA) reality series, “Undercover Billionaire.” “The middle class are going to get priced out permanently. The great divide will get wider, wealthy people are picking up second and third homes like most people buy Skittles or the way we were buying toilet paper back in March. The average person is not able to grab a house today. After the pandemic, the banks went to 20% down, now they’re doing double and triple checks to see if your future employment is stable,” he said during an interview with Yahoo Finance Live on Friday.” ““It’s going to get more and more difficult for people to buy homes in the lowest interest rate environment we’ve ever had, the middle class will not be able to take advantage of this. This validates the concept which I’ve been pushing… cash is trash and the wealthy are turning cash into real assets,” he added.” That helps shed some light on the current state of housing in Denial, er, Newark Ohio. For those unable to afford the flight to the far west side with its exceptional schools, there is only what remains in the already previously “developed” city. Aspiring homeowners who can’t afford the flight to the west side find themselves in competition with “the wealthy [who] are turning cash into real assets” – rentals. The percentage of rental stock available in Denial, er, Newark increases as a consequence of the flight to the far west side. Newark already has almost half its residential housing as investment property (non owner occupant). If “the banks went to 20% down, now they’re doing double and triple checks to see if your future employment is stable,” then rents themselves will be high. And rentals also demand background checks. No, not that a pandemic is in your background. Rents will be high since the alternative is to compete with the Capitalized landlord. Like the coldest days of winter to be, the flight to the far west side of Denial, er, Newark as a solution to its housing shortage contributes to a “growing homeless population” as a consequence.