Posted on 08/21/2017 9:52:44 AM PDT by ARGLOCKGUY
Competition for housing is soaring, affordability is weakening and the U.S. housing recovery is grinding to a crawl — and, in large part, the baby boom generation is to blame.
No, they're not doing anything immoral or illegal; in fact, they're not doing anything at all, and that is precisely the problem. They're not moving.
Baby boomers, the enormous group born between 1946 and 1964, are staying in their big suburban homes far longer than previous generations did at this age, and that is having repercussions down the housing supply line. If baby boomers don't downsize out of big suburban homes, younger buyers eager to upsize, especially in this improving economy, can't find a home to buy.
They used to be called “additions”.
In my area, this is the result of ridiculous expectations on the part of the home's owners about the value of the home. I've seen homes on the market for months -- even years -- at very high prices, and the owners are in no hurry to sell them right now unless they can get top dollar for them.
I've also seen more detached single-family homes for rent in the last few months than I've ever see before. I suspect this is a case where the owner IS in a hurry to sell it, but won't settle for less than the price they have in their mind ... so they rent it to tenants rather than leave it on the market for months.
I’ve got to ask - are we boomers doing anything right?
No :)
If baby boomers don’t downsize out of big suburban homes, younger buyers eager to upsize, especially in this improving economy, can’t find a home to buy.
In some place land is not available to build new subdivisions.
Well, I’d love to sell but rents here in the Boston area are ridiculous! I’m not going to sell the house to pay close to $2000 a month for an apartment. Our house isn’t that large anyways...about 1200 sq feet.
Other than San Francisco, I can’t think of many. Certainly not enough to stall a recovery.
Good question. They are holding out for high prices because the homes are most of what they have. Their choice. Their prerogative.
very articles written about how the liberals want to create a future feudal society by manipulating housing - keep millennials in city apartments and home ownership low so they can be easily controlled by the elites.
The selling costs are too high, the aggravations are enormous and there’s no place to keep the money extracted safe and get a substantial return on it.
The rental house next door to me is for sale.
There’s a house down the street that is actually being renovated during the flipping.
Some people that own two houses rent one to relatives.
In CA the 500k capital gains tax exemption doesn’t go very far and the combined federal and state taxes take nearly 50% of the gains. Plus you loose your prop 13 low tax bill. Better to die in your house and roll all that over to your kids.
Another factor is that houses are built better.
My house will never need painting - it’s stucco on concrete block.
Roofing shingles now last 25 years or more.
Maybe they just want us to give our homes to our kids or newly arriving muzzies:-)
Or maybe it’s the Lib NIMBYs:-)
I don't get it. There is affordable housing all over the United States. There might not be a Starbucks, or some raghead restaurant serving sheep eyeballs. Intead of Whole Foods, you might have to shop at Food Lion or Kroger, or God forbid, Walmart!.
You might have to give up "diversity" (ha ha ha). You might have to take a cut in pay. Of course, when previously owned real stick built homes can be purchased literally sometimes for as low as 1/10 the price of what the same house would sell for in the city, even a pay cut of 50% and you are still getting ahead.
But stay where you are. I don't want you voting in my county!
You win the internet today!
How about you can’t get enough money out of your house to buy another one?
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