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Baby Boomers are incentivized to keep house pricing high since a lot of their retirement is tied up in the value of the house.

by adrr 7y ago

meddlepal 7y ago
Three possible outcomes (with possibility of a blend of all 3 happening): 1. Housing market collapses as boomers realize they need to retire and neither Gen X or Millenials have the money to afford the current stock at their expected price. 2. Alt-outcome #1: Government bails out boomers once #1 occurs (wouldn't surprise me because the Baby Boomer generation is one of the most selfish groups in existence and they actually vote so they tend to be angry, loud, and in control. 3. Alt-outcome #2: Foreign money scoops up all the boomer housing and we have whole new problem.
- city41 7y ago
  There have been some early signs of #1: https://www.businessinsider.com/millennials-vs-baby-boomers-big-houses-real-estate-market-problems-2019-3 https://www.businessinsider.com/millennials-vs-baby-boomers-...
- scarface74 7y ago
  4. Alt-outcome #3: People and companies realize that there are 49 other states in the US, companies build satellite offices, and people move out of California and realize that you can buy a big house with a great school system where the cost of living vs. salaries make a lot more sense.....
  - jdhn 7y ago
    This is already happening, and in return is causing a massive drive up of housing costs in the areas where the Californians are relocating to.
    - scarface74 7y ago
      Over the long term, it should even out then. Companies are already starting to "rural source" and open up branches in the middle of the country.
    - bobajeff 7y ago
      Can confirm. I live in such a place where this is happening.
  - hackerbrother 7y ago
    Cali is not the only place with a housing problem?
    - scarface74 7y ago
      No, but there are lot of places in the US where working class/middle class households (median income of around $70K) can both find jobs and housing they can afford. Your average Software Engineer in Atlanta for instance is definitely not struggling to find a nice (3000 square foot) brand new house in the burbs in a great school system with a mortgage that doesn’t leave them house poor.
      - jedberg 7y ago
        But they have to live in oppressive heat and humidity. There is a reason California is popular -- the temperate weather. You can't really find similar weather anywhere else in the US.
brandmeyer 7y ago
> ~~Baby Boomers~~ Current homeowners are incentivized... There's enough prejudice in the world to go around without misconstruing class warfare as generational warfare.
- adrr 7y ago
  How about the people who have entered retirement failed to save and have all their money tied up in their homes according to multiple studies.
dawnerd 7y ago
It's not just boomers, It's anyone that owns a home... no one wants their property to go down in value - especially if you still owe money on it.
- bittercynic 7y ago
  I'm a counterexample, and expect I'm not alone. The level of distress many of my peers are experiencing due to the cost of housing is horrible, and I'd be happy for the value of my house to be cut in half if it would reduce the misery.
- shsjxjbsbs 7y ago
  I’ll gladly give my house to the bank and rent again if it means everyone can afford a place to stay.

Baby Boomers are incentivized to keep house pricing high since a lot of their retirement is tied up in the value of the house.

by adrr 7y ago

Baby Boomers are incentivized to keep house pricing high since a lot of their retirement is tied up in the value of the house.

meddlepal 7y ago

Three possible outcomes (with possibility of a blend of all 3 happening): 1. Housing market collapses as boomers realize they need to retire and neither Gen X or Millenials have the money to afford the current stock at their expected price. 2. Alt-outcome #1: Government bails out boomers once #1 occurs (wouldn't surprise me because the Baby Boomer generation is one of the most selfish groups in existence and they actually vote so they tend to be angry, loud, and in control. 3. Alt-outcome #2: Foreign money scoops up all the boomer housing and we have whole new problem.

city41 7y ago
There have been some early signs of #1: https://www.businessinsider.com/millennials-vs-baby-boomers-big-houses-real-estate-market-problems-2019-3 https://www.businessinsider.com/millennials-vs-baby-boomers-...
scarface74 7y ago
4. Alt-outcome #3: People and companies realize that there are 49 other states in the US, companies build satellite offices, and people move out of California and realize that you can buy a big house with a great school system where the cost of living vs. salaries make a lot more sense.....
- jdhn 7y ago
  This is already happening, and in return is causing a massive drive up of housing costs in the areas where the Californians are relocating to.
  - scarface74 7y ago
    Over the long term, it should even out then. Companies are already starting to "rural source" and open up branches in the middle of the country.
  - bobajeff 7y ago
    Can confirm. I live in such a place where this is happening.
- hackerbrother 7y ago
  Cali is not the only place with a housing problem?
  - scarface74 7y ago
    No, but there are lot of places in the US where working class/middle class households (median income of around $70K) can both find jobs and housing they can afford. Your average Software Engineer in Atlanta for instance is definitely not struggling to find a nice (3000 square foot) brand new house in the burbs in a great school system with a mortgage that doesn’t leave them house poor.
    - jedberg 7y ago
      But they have to live in oppressive heat and humidity. There is a reason California is popular -- the temperate weather. You can't really find similar weather anywhere else in the US.

brandmeyer 7y ago

> ~~Baby Boomers~~ Current homeowners are incentivized... There's enough prejudice in the world to go around without misconstruing class warfare as generational warfare.

adrr 7y ago
How about the people who have entered retirement failed to save and have all their money tied up in their homes according to multiple studies.

dawnerd 7y ago

It's not just boomers, It's anyone that owns a home... no one wants their property to go down in value - especially if you still owe money on it.

bittercynic 7y ago
I'm a counterexample, and expect I'm not alone. The level of distress many of my peers are experiencing due to the cost of housing is horrible, and I'd be happy for the value of my house to be cut in half if it would reduce the misery.
shsjxjbsbs 7y ago
I’ll gladly give my house to the bank and rent again if it means everyone can afford a place to stay.