3 ms·
The uneven demographic curve shows that many elderly current homeowners will have to sell over the next couple decades due to death or moving into assisted livi
by nradov 1y ago
The uneven demographic curve shows that many elderly current homeowners will have to sell over the next couple decades due to death or moving into assisted living facilities. That will increase supply and reduce demand, although the impact will vary widely by region. Don't expect any major price reductions in popular areas but there may be further collapses in certain rural and economically stagnant areas. You can look at Japan for a preview of how that plays out.
- jchallis 1y agoTax planning can help here. By converting the house to ownership by a tax-advantaged trust , a family absolutely can continue to extract rent from a former property without selling. Doubly so if the mortgage is paid off.
- nradov 1y agoSure, that can help affluent families in some cases. But many elderly people will be forced to sell (or reverse mortgage) their real estate holdings in order to pay for long-term care. Fees at decent assisted living facilities are often in the $8K per month range now so the only way to afford it is to sell the family home.