Posted on 05/03/2024 5:10:58 AM PDT by Libloather
Baby boomers are refusing to downsize in their golden years, according to a Redfin study, which found that the generation born between 1946 and 1964 owns nearly three in 10 (28.2 percent) large homes in the nation—nearly twice as many as millennial households with kids (14 percent).
This is happening despite boomers' kids having long left the nest and their households having shrunk to one or two people. Instead of selling their large properties and moving to a smaller place, boomers are turning the extra bedrooms into hobby rooms and guest rooms for visiting family members.
Read more: What Is a Home Equity Loan?
While it's understandable why boomers are holding on to their mortgage-free large homes, which are likely cheaper than what a new, smaller property might cost them now, their choice to stay put is having a profound impact on the U.S. housing market, contributing to keeping inventory tight. Some 54 percent of boomers own their homes and no longer need to pay a mortgage, according to Redfin.
The historic supply shortage in the country, which is mainly because the U.S. hasn't built enough homes since the 2007-2008 crisis, has kept prices up, even when demand dipped between late summer 2022 and spring 2023, triggering a correction at the national level.
"The number of homes for sale is near historic lows and that is in part due to baby boomers holding on to their homes and aging in place," Daryl Fairweather, Redfin's chief economist, told Newsweek.
"The larger problem is that there isn't enough new construction being built to meet demand from Gen Zers and millennials or from baby boomers who would want to downsize in retirement."
(Excerpt) Read more at newsweek.com ...
“If we both can’t agree, it doesn’t happen.”
As it should be. Sadly, not in our house.
But I’m not bitter.
😏
This should have been the actual lead/headline. Characterizing the problem as greedy Boomers holding on to more square footage than they "need" is a Communist attempt at misdirection, since Communist zoning and building restrictions are the problem.
That’s not a good recipe. 😕
Good grief, how ignorant.
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