Posted on 08/15/2017 6:42:18 AM PDT by Lorianne
Older Americans own half of the houses in the market. Many are simply refusing to sell and others have adult “kids” moving back in since they can’t afford a place to rent or buy. It is a Catch 22 and many people are looking at countries like Italy where the number of adults that live at home is enormous. Multi-generational families just don’t coincide with the “rugged American” worldview where you go out on your own and you make it with your own two hands. Of course, many house humpers had mom and dad chip in but that doesn’t make for such a sexy story. In the end, however there are many baby boomers that simply are not selling. This is actually an interesting problem that is not going away.
Refusing to sell
Housing used to be a young person’s game. The U.S. housing market and to a large extent, the economy was driven by home buying and big ticket purchases. But that has definitely changed since the housing market imploded with the 2000s. It has also changed in terms of people marrying later, having fewer kids, and basically preferring to live in city centers versus suburbs. In other words, not a big need for McMansions.
The oldies but goodies are now occupying a larger share of housing:
Over half of homeowners in the U.S. are now 55 and older. And this figure is only going to grow over time. In places like California, the Taco Tuesday baby boomers own the housing market. This is just a fact and has kept inventory to a very low level.
But housing has gotten more expensive across all U.S. metro areas so this is a much larger trend. It has absolutely crushed the available inventory out on the market:
SNIP
This is not a rent vs. own argument. This is a "paying off your mortgage vs. paying a mortgage for the purpose of getting a tax deduction" argument.
Now, try again.
Whenever I sell my home I’m going to do well as a result of appreciation. However, that sort of evens out by the amount of time and money I pour upkeep and repairs.
The bottom line is that my house really isn’t part of my portfolio, per se. Rather, it is part of my overall life-long financial strategy. Pay off the house as I approach retirement and live mortgage free.
We bought our first house kind of late in life (35) compared to our peers, but I simply can’t imagine how it helps anyone financially (except the apartment owner) by renting the rest of one’s life.
If someone buys a house as an investment akin to the stock market they may be sorely disappointed depending on the property and its location, but if you own a home as part of a lifetime investment it usually works out a lot better than renting with nothing to show but a stack of monthly rent receipts.
Why would anyone care what Italy is doing?
Okay, I admit, I may have missed your initial point. If it was paying off versus not paying off, then you are spot on.
This is contrary to the principle of Citizen Serfs, and articles like these are the start of a MSM narrative of the need to require said homeowners to relocate to a FEMA camp and enjoy the government care there, in exchange for their real property, which will be managed so much better by the government bureaucrat.
I didn't say anything about managing properties.
I simply said "paying a mortgage FOR THE PURPOSE of getting the tax deduction is stupid".
Go back. Read it for yourself.
Sheesh.
My work here has borne fruit after, lo, these many years.
Thank you for restoring my faith in humanity.
NYS home owners over 65 get a property tax break on their school tax bill. The state is subsidizing seniors at the expense of younger people.
You also posted this: “...but I’ve been told it literally translates into “death grip.” Even if that’s not what it translates into, it’s true. .”
False.
My sisters live in Fairfield County. Yea the one that GE Corporate HQ abandoned for Boston for lower taxes(figure that out) and the housing market is awash with high middle manager homes. Taking 6-12 months to sell. The problem they have is that they pay over $1,000 per month on their homes for taxes. They are finally selling and moving South. Going to be a tarheel.
Don’t know if that’s the norm in the NYC suburbs. When I was a kid my parents bought a new house in Rockland County,nobody really gave property taxes a second thought. Taxes on that house today are around $14k. There’s stories all the time about people who bought houses at reasonable prices, busted their butts to pay off the mortgage,but by the time they can retire they’re faced with a choice, keep working or move. One reason why here in Spring Hill, FL they may as well rename it New New York.
1)Youngsters can’t afford a mortgage with $100k in student loan debt and two leased BMWs in the driveway.
2)Many states have tax benefits for senior citizens. A move after 65 may be very costly tax-wise
3)Why go load up on debt late in life when my present abode is paid for except for taxes and insurance.
Refuse to sell - yep, and since the neighborhood is integrated, the realtors can’t even use the block busting tactics they used in the 60s.
That’s quite a drop in inventory over only 10 years!
But, ain’t any of us getting any younger! Makes sense to stay put. We’ll be living on our farm until they carry us out feet first. ;)
In NYC property taxes, scool taxes in particular are an issue. Seniors, especially those getting a variety of tax breaks, can often better afford them than younger folks.
That should read NYS, not NYC.
Haha. Yeah. Wishful thinking. If weakness continues to be shown toward the left those properties will be seized in their lifetimes.
And that is the 800lb gorilla that no one talks about. The development cost has skyrocketed in the last decade or so. Liberals have used it to fight "sprawl" (is it government's job to determine where you live?). And other government types who want to strangle the goose to get it to lay one more golden egg.
Developer fees are directly passed on to those who wish to build a home and these fees have gotten into the nosebleed territory, and yet very few people even know about it.
True. But here near Salt Lake City my mortgage payment, taxes, upkeep etc added together are less than what it would cost to rent a comparable place.
Are you math impaired, or logic impaired?
The only way your formula works is if the alternative is living in your car.
Oh, brother. Fine. Chew on the bone, spit out the meat.
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