I’ve been to Mumbai about three times in the past decade or so. It’s the most packed city in India.
There’s no doubt it’s a magnificent, sprawling city full of wonder. Yet as far as large cities go, many think it’s more affordable than urban areas in China – a country that holds the world title for the largest housing bubble on the planet!
That might be. But what I can tell you is that I’ve talked to a number of hotel workers in Mumbai who have to travel as much as two whole hours to get to work in the city. Living in the city is completely out of the question. There’s no way they could afford to. And even the surrounding areas are pushing it.
I’ve no doubt there are countless such workers in the U. S., but even for those who can pull off renting in a big city, they haven’t got an easy time, either!
The housing bubble is now higher than ever in cities like San Francisco, Miami, Denver, Dallas and Houston.
They’re so bloated that most of the people in these cities can’t afford to own a home there. They can only rent.
But here’s the catch-22: renting hasn’t gotten easier. It’s gotten more expensive. By a lot!
Rents have been getting more and more expensive for three whole decades now. Between 1985 and 2000, renters spent an average of 24.2% of their income. Today, it’s 30.2%. That’s 24% higher!
This post was published at David Stockmans Contra Corner by Harry Dent ‘ August 20, 2015.
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