Housing ownership falling back to '80s levels?

The New York Times says that yes, just such a thing could happen before the housing bubble finally, fully deflates.

This isn't just more and more subprime loans going belly-up. On the side of "fundamentals," it appears more and more would-be buyers are willing to continue the wait-and-see as to how much further the market might go.

And, this isn't just a decision in high-priced urban areas.

The Associated Estates Realty Corporation, which owns 13,000 apartments in Georgia, Indiana, Michigan and other Midwest and Southeast states, also is seeing more people deciding to rent.

“We have more of what we call ‘renters by choice’ than I’ve seen in the 40 years I’ve been in the apartment business,” said Jeffrey I. Friedman, chief executive of Associated Estates.

Beyond that, it appears that other Americans have finally stopped buying into the myths told by the National Association of Realtors and believed by people like my parents about the "investment" of owning a home.

Especially given the craptacularly cheap value with which many of today's Sunbelt suburban homes are built by the likes of D.R. Horton, et al, this is an investment that, frankly, sucks.

Besides, as long as there's such a glut of homes on the market, even if housing quality were better, there's no chance of serious appreciation.

That said, the continued slump affects more than just housing. Realtors were a major newspaper advertiser. And, they made money off legal notice classifieds for zoning changes, development hearings, etc. that city and county governments had to hold.

In the housing biz itself, this also affects subcontractors, many of whom, like carpenters, would be the contractor on farmed-out remodeling, etc.

The AP has a great follow-up story on the broader effects of the housing bubble. It also mentions the foreclosure fraud committed by mortgage signing services, a fraud the banksters don't want to accept any responsibility.