At last, a solution to the housing crisis

 
Asia Times
How to Cut Housing Demand in Half
May 17th, 2011
By David Goldman
http://blog.atimes.net/?p=1794
The American Planning Association blog observes that 1.2 million households have disappeared in the current crisis. That could be the beginning of a trend. With an average of 555 square feet in residential living space per person, there is enormous room for housing demand to expand or contract. In tough times, people double up. As the Boomers reach retirement with little or no savings, many will do what Steve Vernon at CBS MoneyWatch suggests: two retired couples will share a three-bedroom house. Four retirees will have a combined income of $72,000 from Social Security, which means that the four residents of the house will enjoy the median income of American families. Back in 1973, America had 25 million households with two parents and two more children, and 35 million housing units with three or more bedrooms. Today it has the same number of households with two parents and two or more children, but more than 70 million housing units with three or more bedrooms. Split the American dream in half, and you solve the retirement problem — leaving a gigantic deficit of large-lot single family homes. Two retiring couples who can agree on buying a house in Phoenix or Las Vegas, moreover, can get quite a bargain.
 
A three-bedroom home in Las Vegas costs just $111,000 today, or $22,000 down plus an annual mortgage payment of just over $4,000. Not bad for two couples earning $72,000 in Social Security benefits. But the result will be that the housing market never recovers.