Posted on 04/27/2023 11:22:00 AM PDT by millenial4freedom
In a recent report from the Indiana University Center for Real Estate Studies and the Indiana Business Research Center, researchers said Millennials — who are between their mid-20s and early-40s, are in the prime-homebuying age — have pushed up home prices in recent years as demand outweighs supply.
But the situation will start to reverse over the next decade, as Baby Boomers begin age out of the housing market. Meanwhile, post-Millennial generations will be smaller as population growth slows.
That could lead to an excess of housing, potentially pushing down prices and sparking a crash in the real estate sector.
"Plainly put – a generational housing bubble is on the horizon. New housing built now to meet strong demand may sit vacant in a decade. Demand reversal will intensify by the mid-2030s, when the annual number of homes that seniors add back to the market is expected to be 40% higher than current levels," researchers said.
(Excerpt) Read more at msn.com ...
Home buyers, especially gen x, y, z etc. get to compete with cash buyers.
Those cash buyers are hedge funds, sovereign wealth funds, foreigners, wealthy, private investors, etc. Those are the only players fueling a bubble via .gov
Asset inflation via helicopter money from .gov helps the wealthy get wealthier, inflation is a middle class and poor problem.
demand drops -— due to unaffordability...
I have been thinking there will be excess inventory of houses due to the Baby boomers dying off. Do not buy a house as an investment, it is just a place to live.
Millennials buying family homes means there is, perhaps, some hope for more kids, housing dropping in prices has a floor which rises generationally eventually.
If you got a Mortgage I hope it was at least 2 years ago with very low rates.
I love avocado toast
I sold my home last year so I beat the rising interest rates and potential housing glut crisis.
“Many [banks] are already on the ropes and have been downgraded by Moody’s.”
“Moody’s Investor Services on Friday issued downgrades for 11 regional investors after the credit agency signaled last month that it was conducting reviews of some banks following the collapse of tech-centric Silicon Valley Bank.
Utah-based Zions Bancorporation was among the group of financial institutions that received downgrades.
The U.S. banking sector has come under increased scrutiny following the failures of Silicon Valley and New York-based Signature banks, both of which were impacted by losses on bond investments and unusually high percentages of uninsured depositors.”
https://www.yahoo.com/news/moody-downgrades-11-regional-banks-183032203.html
At least 1 in 5 Americans weren’t born here and thousands more come each day.
Makes sense to me.
None of us are getting any younger, and ‘our betters’ are replacing us with illiterate, disease-carrying freeloaders from Third World Hellholes.
Which part of our Country ISN’T going to be ruined by that? Doesn’t seem to stop Mother Government from burning through the pulled-from-thin-air cash, aiding and abetting the ruination of us all.
*SPIT*
Most of these third worlders have an IQ below 90. Most can’t hack HS.
Are they citizens or are they illegals?
Don’t call them Americans unless it’s the former.
I do not believe that 70 million citizens of this country were not born here. I can believe 1 in 5 when you factor in resident illegals.
1 in 5 bodies, not Americans.
“That could lead to an excess of housing, potentially pushing down prices and sparking a crash in the real estate sector.”
Good, that is what is supposed to happen when you have a bubble. Housing prices are not supposed to constantly trend upward. But of course, our inflationary monetary policies tend to push the prices for everything constantly upward over the long term.
Simply not true, the # of homes being bought by investors has gone up some, but not that much, and homes built has increased by more in the last 3 years. Most buyers are existing homeowners. Investors are disproportionately being on the low end, but they’ll be hit the hardest when the article’s phenomena starts to happen.
Millennial's aren't purchasing multiple homes. That is the point I made. Someone buying another home, is wealthy, perhaps a boomer or a investor. They can be looking to downsize, but another person has to buy that home or they hand it off to the kids.
My point is the overwhelming majority of buyers of homes are not investors today. The % of buyers that are investors has gone up a bit, but so have mom & pop sellers, and the # of homes built has jumped quite a bit from before. The net effect is that investors, with the exception of starter homes, are not impacting the market that much, hence why homes over $750k have grown as fast as homes below $750k (where investors play). The main reason home prices have gone up so much is the Fed Reserve increased the money supply 40% in ~15 months, lowered rates to almost nothing and the federal government handed out free money to anyone and everyone, plus everyone decided where they lived was very important with covid.
"Wealthy?" I do not thank that word means what you think it does.
We bought three houses for under $10,000 each (that is the price of a used car) fixed them up and used them as rental property.
When our property management business was healthy the average monthly return for our clients was $1,400 a month after all property taxes, fees, repairs and other things were taken out. That was before federal and state taxes.
And our clients were just normal small investors.
Was that a recent investment, or sometime ago?
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