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The report points out that the ratio of those aged 65 and older to working age (25 to 64) adults will increase by 67% between 2010 and 2030, and that when these older adults try to sell their “high-priced homes” to a “relatively smaller and less-advantaged generation” — a cohort whose buying power was diminished through the housing boom’s price increases — there will be more homes for sale. In some states – namely Connecticut, Hawaii, New York, North Dakota, Pennsylvania and West Virginia – the process has already begun, with sellers starting to outnumber buyers, Mr. Myers says. He contends that the East Coast, particular Maryland and states north, face a double hurdle because there aren’t enough young people to pick up the slack as boomers sell off and because prices are so high that many will not be able to afford these homes. “In some states like New Jersey, it could be 20 years before prices recover,” he says, explaining that the generational trend is one that could stretch for decades.

He actually has a point here - and it is valid.

What the article does not mention is what will happen to local and State governments that have become addicted to high property tax revenues.

It is already beginning to impact some of the local townships here in New Jersey. When housing prices took off, townships re-assessed the property and hiked up property tax rates.

It is essentially paying the state "rent" to live on property you own.

In some of the more expensive McMansion communities outside Philadelphia, homeowners can expect to pay $26,000 and up for a house that is anywhere from 3,600 to 4,400 sq ft.

If the house is on one of New Jersey's lovely lakes around here, and they own a bit more land, the cost can be up to $38,000 a year and more in property taxes.

“It is already beginning to impact some of the local townships here in New Jersey. When housing prices took off, townships re-assessed the property and hiked up property tax rates.”
.....same thing when we lived in suburban Maryland...and I had 23 acres that qualified as a agricultural assesment...owned the place free and clear and the taxes were like a mortgage payment in and of itself.