Send a Tweet
Most Popular Choices
Share on Facebook 19 Share on Twitter Printer Friendly Page More Sharing
OpEdNews Op Eds   

Unintended Consequences of Trading with China

By       (Page 1 of 3 pages)   1 comment
Follow Me on Twitter     Message Joel Joseph

What happens to the hundreds of billions of dollars that we send to China for consumer products, furniture, apparel, shoes and other stuff? Those billions of dollars are coming back to haunt our housing markets, making it more and more difficult for middle-income buyers to buy homes in California, Texas, Seattle, New York, and other locations.

Foreign buyers purchased on $153 billion worth of U.S. residential properties for the 12 months ended in March, 2017. That is a massive 49-percent jump from a year earlier, according to the National Association of Realtors. Foreign purchases of U.S. residential real estate surged to the highest level ever in terms of number of homes sold and dollar volume.

Most economists (not me and a few other progressive economists) have contended that American consumers should enjoy cheap Chinese furniture, rugs, electronics and clothing even if it is illegally dumped in the U.S. They argue that we are getting a bargain. But the side effects, the unintended consequences of this practice, is undermining home ownership in America. We will have all this cheap Chinese stuff and have no home to put it in.

Florida, Texas, California, and New York drew the most international buyers. Foreign sales accounted for 10 percent of all existing home sales by dollar volume. In total, foreign buyers purchased 284,455 homes, up 32 percent from the previous year. Half of all foreign sales were in just three states: Florida, California, and Texas.

Exacerbating Income Inequality

Middle-class home ownership has been the backbone of the American economy and the American dream for generations. The massive influx of foreign dollars is threatening our way of life. Home ownership is down significantly for the first time in American history. In some communities, home ownership has dipped below 50%.

Only 48.3 percent of households in Los Angeles and Orange counties lived in a home they own in the second quarter of 2017, the second-lowest home-ownership rate in the nation. U.S. Census Bureau data released recently shows Fresno, California, at 44.5 percent, having the lowest ownership among the 75 largest metropolitan areas. The New York metro area was third at 49.8 percent.

Housing analyst Logan Mohtashami isn't surprised by low local ownership. He estimates that 82 percent of the working-class people in Southern California can't afford to buy a home in their own ZIP code.

California's statewide ownership fell to 53.8 percent, down from 55.1 percent at the start of 2017. It was fourth-worst in the second quarter behind Washington, D.C. (39.2 percent); New York (50.7 percent); and Hawaii (53.7 percent).

Next Page  1  |  2  |  3

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

Supported 1   Valuable 1  
Rate It | View Ratings

Joel Joseph Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

CEO of California Association for Recycling All Trash, and CEO of Genuine-American Merchandise & Equipment,, manufacturers of tennis equipment in the USA (Tennis Wellbow, Good Vibe vibration (more...)

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
   (Opens new browser window)

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The Trumps and Jared Kushner Cheated Their Way into Elite Colleges

Outsourcing Obamacare

Red Nose Day Gives Black Eye to Walgreens and NBC

Shame on Ralph Lauren and the US Open

Great American Products to Buy Labor Day Weekend

U.S Trade Deficit Causes Income Inequality

To View Comments or Join the Conversation:

Tell A Friend