The problem is that we are running out of younger people willing and able to afford home ownership. House prices are inevitably going to decline over the next few decades, and we’re going to start seeing abandoned homes, as they already do in Japan. If you’re a younger person who decides to buy a house, do it because you want a house to live in - it’s not going to become the high-yield investment vehicle it was for your parents.
Plenty of foreigners still want US real estate, and that's what keeps prices out of reach for the average American.
Government taxing policies on home ownership are what’s tipping the economic balance of owning a home.
As they say in the real estate business, the three most important factors to consider when buying real estate are location, location and location.
Japan has more than 37% of the population of the U.S., but they are packed into less than 4% of the land. Japan's real estate market is comparable to the real estate market in a state like New York, with a high-density population that has been declining for the past several years.
In the U.S., real estate values and trends are much different in some parts of the U.S. than they are in others. Back in the late 1980s and early 1990s, real estate crashed in most of Texas, due to the oil market crashing and causing a ripple effect from Houston to the rest of the state. California refugees poured in, selling their 2/1 houses on 50x100 lots in San Francisco and LA and buying 4/3 houses with pools on an acre or more in or around Austin for the same amount.
Currently, most large, democrat-controlled cities already look like Japan, due to the exodus of residents. Meanwhile, they cannot build new houses fast enough in most of Texas and Florida.
Real estate will continue to go up in value wherever people with money want to live and will continue to go down in value wherever people are leaving. This will still be the case even if the U.S. population growth flat lines (or is driven entirely by illegal aliens with no money).
Google search says....
Experts say baby boomers will give more than $50 trillion to their heirs.
I’ve got a son and a daughter. And two mortgage free homes. So this statement fits my situation perfectly.
Neither of my kids can afford to buy a home. But they may get one for free. (Almost free)