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That being said, let's start with a dwindling supply of renters to buy homes (renters shown as a percent of renters plus owners). D'oh!
Add homes, lots and lots of homes (literally!). Simultaneously simulate a 1990-1991 style consumer recession in the Renters chart action (from 2004 to 2007 in the above chart). D'oh!
Beat to a pulp with your favorite exotic mortgage cooking instrument. D'oh!
Bake for several years and enjoy! Just don't let it cool. Never let it cool. You'll just have to trust me. That would be VERY bad.
Note that I put an exponential trend line on that bottom chart. There's only two problems with that. First, it doesn't make any sense for it to be exponential. That would imply that there will be one housing unit for sale per renter someday. Second, it is behaving much more like a parabolic chart. That's actually much worse. D'oh!
So here's another way to look at the data.
In 1965, the percentage was 2.58%.
In 1993, the percentage was 2.54%.
Maybe something around 2% to 3% might be kind of normal. If so, what the heck are we doing up here near 6%? Nah, that's just crazy talk. Real estate only goes up.
That's what we are told, over and over and over again (mostly through TV shows such as House Hunters, Designed to Sell, Location, Location, Location, Buy Me, Property Ladder, Sell This House, Flip This House, and Flip That House).
The data in the two charts is yearly from 1965 to 2006. 2007's data is from 2007 Q3 as released on October 26, 2007.
See Also:
Calculated Risk: Census Bureau: Vacancy Rates Stable in Q3
Source Data:
U.S. Census Bureau: Housing Vacancies and Homeownership (CPS/HVS)
U.S. Census Bureau: 2007 Q3 Residential Vacancies and Homeownership
4 comments:
I've just recently become aware of this blog and applaud your creative graphical interpretations of data.
BTW I found this blog via the Calculated Risk blog (also recently discovered), but don't feel guilty; if I'd have come here first I would have found my way to that fine site as well. Great synergy!
Thanks!
I'm glad you enjoy it and I appreciate your comments.
Get your facts first, and then you can distort them as much as you please. - Mark Twain
These days I prefer putting the data on the US map, since coloring it takes me back to my childhood, lol.
It's clear we have to spawn like rabbits so we can sell our houses.
The Spanish solution really isn't looking all that bad.
maxedoutmama,
No kidding. Not only that but if we start demolishing perfectly good housing units simply because we're in financial difficulties this blog ("illusion of prosperity") will no doubt be around for awhile.
I'm sure we'll think of other things to demolish too. Heck, might even start fighting a land war in a country sittin' on oil. Stranger things have happened.
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