Why are home prices so expensive? Blame the boomers, Barclays says

Fox Business ^ | 09/12/2023 | Megan Henney

[millenial4freedom]

U.S. home prices across the country are surging even with the astronomical rise in mortgage rates, putting ownership out of reach for millions of Americans.

The spike in interest rates – which topped 7% last year for the first time in two decades – has created a "golden handcuff" effect in the housing market: Sellers who locked in a record-low mortgage rate of 3% or less during the pandemic began have been reluctant to sell and take on a more expensive option, leaving few options for eager would-be buyers.

[millenial4freedom]

so the Fed isn't complicit (or not as much as Boomer homeowners) according to Barclays?

[Reno89519]

Blame the millions of illegal aliens who have invaded the US. They have to live somewhere in that creates undue competition, prices go up.

[Tom Tetroxide]

Money printing and de-dollarization.

[Boogieman]

The Fed is probably the majority culprit, not just for keeping interest rates too low for too long, but for their continual manipulation of the money supply which has created constant long term inflation for all goods, while forging the inflation statistics so that wages for the average worker will never “keep up” with actual inflation.

Boomers if they had a part were just taking advantage of a situation they didn’t create.

[Theoria]

Buyers are hedge funds, sovereign wealth funds, wealthy foreigners, wealthy individuals, etc.

The US housing market is a vast place that allows easy transactions compared to other places around the world. Fleeing individuals find it a option to park money.

This is another reason why gen x, y, z, are competing against such buyers, and find it difficult to locate homes at a affordable price.

[Da Coyote]

Wow, that’s a stretch. Boomers, eh?
So, the incompetent gubmit’s regulations, inflation, laughable energy policy, and outright corruption has nothing to do with it, eh?
Riiiiiiiiiight.

[jeffc]

I see so many signs and get mail proclaiming "I pay cash for houses", so some people have a lot of spare $$ laying around...

[The Louiswu]

Trump and the Russians!!! /s

[Red Badger]

I’m a Boomer.

My house is paid for.

I’m not selling.

It’s my fault.....................

[1Old Pro]

leaving few options for eager would-be buyers

Everything is for sale, for the right price.

[Billthedrill]

It’s Trump. And climate change.

[Dilbert San Diego]

In some major cities, about 30 percent of homes are being bought by investors, not by individuals who plan to live in the houses.

This adds to the demand, on the demand side of the supply and demand equation. Investors in the housing market have the effect of forcing prices upwards.

In many places around the country, the supply of new housing being built, has not kept up with population growth. So this shortage on the supply side also will help push prices upward.

[JayGalt]

The whitewashing of the Fed continues a pace. Too much power in hands that are controlled by special interest.

[icclearly]

I’m not selling.

Me.

Too.

[ProtectOurFreedom]

Giving away $5 trillion to keep people home during the flu will do that.

[dfwgator]

Also, Property Tax increases are limited depending on how long you’ve lived on the property. If you sell and move, and stay in the same area, your Property Tax bill will go way up, this is the case in Florida.

[Night Hides Not]

Yeah, go ahead and blame me, I have broad shoulders and a don’t give a damn.

[MayflowerMadam]

Ditto to all you said.

[NorthMountain]

Generational stereotyping is a poor substitute for actual thinking.

[Myrddin]

I place the blame on Blackrock and related real estate vultures. They are constantly calling homeowners with cash offers, then jacking up the prices. At the same time, there is a boom in the building of apartments. My area is getting saturated with new apartments. The rental prices are high for the new units. The huge question is: who is employing people with sufficient income to afford the new units. Where are these people going to shop? There are few high paying jobs in my area and stores are closing. I'm concerned that the new apartments are going to be filled with unemployed people using section 8 from the US government. The unemployed will supplement their income with property theft and drug dealing.