Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Baby boomers are refusing to sell and will age like a fine wine in their homes.
Dr Housing Bubble ^

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


TOPICS: Business/Economy
KEYWORDS: babyboomers; elderly; housing; seniors; trends
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 ... 121-139 next last
To: ThisLittleLightofMine
Oh, my gosh. It's amazing how this always happens.

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.

21 posted on 08/15/2017 7:03:34 AM PDT by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
[ Post Reply | Private Reply | To 19 | View Replies]

To: Texas Eagle

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.


22 posted on 08/15/2017 7:04:58 AM PDT by Obadiah
[ Post Reply | Private Reply | To 9 | View Replies]

To: Lorianne

Why would anyone care what Italy is doing?


23 posted on 08/15/2017 7:05:17 AM PDT by subterfuge (Build the damn wall...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Texas Eagle

Okay, I admit, I may have missed your initial point. If it was paying off versus not paying off, then you are spot on.


24 posted on 08/15/2017 7:06:07 AM PDT by Obadiah
[ Post Reply | Private Reply | To 21 | View Replies]

To: Lorianne
Baby boomers are refusing to sell and will age like a fine wine in their homes.

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.

25 posted on 08/15/2017 7:06:58 AM PDT by Navy Patriot (America returns to the Rule of Law)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BBB333
Oh, my gosh. Why is it so hard for people to focus on simple things.

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.

26 posted on 08/15/2017 7:07:03 AM PDT by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Obadiah
Hallelujah!

My work here has borne fruit after, lo, these many years.

Thank you for restoring my faith in humanity.

27 posted on 08/15/2017 7:08:33 AM PDT by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
[ Post Reply | Private Reply | To 24 | View Replies]

To: spokeshave

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.


28 posted on 08/15/2017 7:09:35 AM PDT by mewzilla (Was Obama surveilling John Roberts? Might explain a lot.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Texas Eagle

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.


29 posted on 08/15/2017 7:10:06 AM PDT by BBB333 (The Power Of Trump Compels You!)
[ Post Reply | Private Reply | To 26 | View Replies]

To: ThisLittleLightofMine

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.


30 posted on 08/15/2017 7:10:12 AM PDT by Kozy (new age haruspex; "Everyone has a plan 'till they get punched in the mouth.")
[ Post Reply | Private Reply | To 19 | View Replies]

To: Lorianne

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.


31 posted on 08/15/2017 7:10:28 AM PDT by Impala64ssa (Islamophobic? NO! IslamABHORic)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

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.


32 posted on 08/15/2017 7:10:33 AM PDT by PAR35
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

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. ;)


33 posted on 08/15/2017 7:11:35 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rstrahan

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.


34 posted on 08/15/2017 7:11:39 AM PDT by mewzilla (Was Obama surveilling John Roberts? Might explain a lot.)
[ Post Reply | Private Reply | To 20 | View Replies]

To: mewzilla

That should read NYS, not NYC.


35 posted on 08/15/2017 7:11:59 AM PDT by mewzilla (Was Obama surveilling John Roberts? Might explain a lot.)
[ Post Reply | Private Reply | To 34 | View Replies]

To: Lorianne

Haha. Yeah. Wishful thinking. If weakness continues to be shown toward the left those properties will be seized in their lifetimes.


36 posted on 08/15/2017 7:12:13 AM PDT by riri
[ Post Reply | Private Reply | To 1 | View Replies]

To: rstrahan
...land use controls stopping new development in many states, municipalities.

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.

37 posted on 08/15/2017 7:12:22 AM PDT by Obadiah
[ Post Reply | Private Reply | To 20 | View Replies]

To: Texas Eagle

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.


38 posted on 08/15/2017 7:13:54 AM PDT by Seruzawa (FABOL - F*** A Bunch Of Liberals)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Texas Eagle

Are you math impaired, or logic impaired?

The only way your formula works is if the alternative is living in your car.


39 posted on 08/15/2017 7:13:55 AM PDT by PAR35
[ Post Reply | Private Reply | To 9 | View Replies]

To: BBB333

Oh, brother. Fine. Chew on the bone, spit out the meat.


40 posted on 08/15/2017 7:14:53 AM PDT by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
[ Post Reply | Private Reply | To 29 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 ... 121-139 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson