More people doubling up = contraction in number of households

The WSJ has offered a great commentary on findings from the US Census Bureau that 69.2 million, or 30% of Americans, were doubled-up in 2011, up from 61.7 million adults, or 27.7%, in 2007. While moving in with family can keep someon from poverty it has a negative affect on the overall economy by decreasing the number of consumers. But that is pretty much common sense. If someone doesn't have a job, they don't have much money which means they need a cheap (or free...thanks Mom and Dad) place to stay.

Here is one clip from the article but click the link above for the complete story:

"Much of the increase comes from young people, ages 25-34, living with their parents. Some 5.9 million, or 14.2% of 25-to-34 year olds, lived with their parents in 2011, up from 4.7 million before the recession.

“These young adults who lived with their parents had an official poverty rate of only 8.4%, since the income of their entire family is compared with the poverty threshold,” David Johnson chief of the Housing and Household Economic Statistics Division at the U.S. Census Bureau said. “If their poverty status were determined by their own income, 45.3% would have had income falling below the poverty threshold for a single person under age 65.”"

Just imagine what a little job creation would do....

Flood Insurance

Most landlords I know dread the annual (or monthly) insurance bill. While they recognize the protection insurance provides, they doubt they will ever need it and pay little attention to the policy details. Additionally, most property owners never consider getting flood insurance unless their property is in a flood area and the lender requires it. After all, it just adds to the cost.

Well, after Hurricane Irene and the flooding witnessed in the Northeast, it might be time for property owners to re-think their position on flood insurance. After all, flooding can happen almost anywhere if enough rain hits the ground and the typical drainage system fails.

I would encourage you to read through the National Flood Insurance Program website to educate yourself. For as little as $10-$20 a month you can insurance small rental properties against flood damage if they are in low-to-moderate risk areas.