Authored by MN Gordon via EconomicPrism.com,

The housing market, for much of the 20th century, was the bedrock of the American Dream.Home ownership, and the financial stability it represents, was a sure path to middle-class prosperity.

That dream turned to a nightmare for many American families during the epic real estate bubble and subsequent bust in 2008-09. What’s more, in the near two decades that followed, federal monetary policies coupled with restrictive local development standards have huffed and puffed an even more perilous bubble than the last one.

Now the crumbling façade of American real estate and the associated economic squeeze has become too great to ignore. To understand why the real estate market is falling apart, you must look at who’s expected to buy the houses. The arithmetic simply doesn’t work.

We’ve reached the point where discretionary income, the money left over after you’ve paid for basic needs, has effectively vanished for much of the population. When67 percentof Americans are living paycheck to paycheck, saving for a down payment is impossible.

Currently, about72 percentof Americans are struggling to pay their monthly bills. We aren’t talking about luxury vacations or even unexpected medical expenses. We’re talking about keeping the lights on and the fridge full. When the buffer is gone, the entire economic engine stalls.

The lack of affordable housing has created a generational rift. Young workers find themselves trapped in a permanent renter class. They’re unable to build the equity that once anchored the nation’s middle class.

Right now, more than75 percentof homes across the country are unaffordable for the typical household.Most Americans are effectively priced out of the housing market. And this number is climbing.

Between higher interest rates, relative to four years ago, and artificially inflated valuations, the entry-level home no longer exists.

The ladder of social mobility has been pulled up.Millions of Americans have been left behind. Shelter is no longer a basic path to financial stability, but an unreachable speculative asset.

Source: ZeroHedge News