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And there is the rub, the Boomers have treated their homes as investments, on average their homes are by far their largest "investment", with plans of downsizin
by ZoeZoeBee 10y ago
And there is the rub, the Boomers have treated their homes as investments, on average their homes are by far their largest "investment", with plans of downsizing to finance their retirement. The problem with this is you need to find someone to purchase the home.
Over the last few years a large part of the reason in the increase in the value of homes has had to do with historically low interest rates and a statistically low inventory due to the number of homes underwater or with low equity. The Boomers are just starting to retire, over the next decade many will attempt to do as you describe creating a glut of homes for sale, while the median household income has continued to decrease making it impossible for the generations coming behind to absorb those homes based upon their income and Demographics, remember Gen X is much smaller than the Boomers and the Millenials have not come into their own yet.
- AnimalMuppet 10y agoWell, with each generation containing more members than the previous, it would all work out, except for that pesky "median household income continuing to decrease" part...
- ZoeZoeBee 10y agoWell that would be the case if Demographics and birthrates supported that. The Boomers were the largest generation by births Gen X was much smaller and the only reason there are more Millenials than Boomers at the moment is immigration and some of the Boomers have died off. Birthrates at or below replacement level in most of the developed world for the last 40 years are begging to show their consequence, the problems will grow over the next few decades as Demographics take hold. As of this year more people are dying in the EU every year than are born, Japan has been mired in this for years and China will see the problem as well as their working age population is in decline.