Rental World: California adds more than 500,000 renters while the homeownership rate declines amidst a boom. California food stamp users jump from 2.2 million in 2008 to nearly 4 million today.

Dr. Housing Bubble reports:

The California housing market is providing us with two different pictures. First, home prices have surged and inventory is still very low (although increasing from the spring low). However, the homeownership rate continues to decline from the peak reached in 2006 of 60.2 percent. Today the California homeownership rate is 54.5 percent. How big of a difference is this? Since 2007 California has added a net of 500,000 renter households while losing a net of 233,000 homeowners. Yet the market continues to boom in the face of a declining homeownership rate. As we look at the market today we start seeing a slowdown in the speed in which flips are being accepted and inventory is rising. With higher interest rates and the fall season just before us, will the market thaw or continue to accelerate?

Thank you Federal Reserve for this madness!