4 ms·
The population is still increasing and there is a housing shortage. Old people sell homes and combine households with family. Young people (larger total popula
by searine 7y ago
The population is still increasing and there is a housing shortage.
Old people sell homes and combine households with family. Young people (larger total population) buy up those homes.
Thats how its supposed to work, but instead we have real-estate as investment and old people sitting alone in their massive houses until they croak.
- onion2k 7y agoThe population is still increasing and there is a housing shortage. I'm not sure that really matters. If young people can't afford to keep a huge house that costs a fortune to maintain then any shortage isn't going to get people to buy that house. They can't afford it even if the old people who own it lower the price.
- simonh 7y agoSay an increased supply of 4 bedroom houses appears. More people with 3 bedroom houses will be able to upgrade than previously to replace them, which means more people in 2 bedroom houses will be able to upgrade, driving down the prices of 2 bedroom houses as well, which means more people will be able to buy a house at all.
- onion2k 7y agoThis assumes that there isn't already a supply of 4 bedroom houses. That assumption is wrong. In fact there are far more large houses that younger people don't want than the market needs, and old people who bought them as investments to sell so they could retire and live off the equity are finding that a big problem - http://www.businessinsider.com/millennials-vs-baby-boomers-big-houses-real-estate-market-problems-2019-3 http://www.businessinsider.com/millennials-vs-baby-boomers-b... At the same time there isn't enough supply of smaller properties that young people ~do~ want. This is another, separate problem.