Posted on 07/09/2021 7:41:44 PM PDT by Crim
Baby boomers hold more real-estate wealth than any other generation.
The Silent Generation held that distinction until 2001, according to Michael Kolomatsky's analysis of Federal Reserve Data for The New York Times. As was typical of older generations, many had begun selling their homes to move in with their families or into assisted-living facilities or nursing homes, leaving boomers to take over as the biggest wealth holders in real estate.
But boomers are now breaking tradition. They've surpassed the Silent Generation, per the Times' data analysis, holding the most real estate wealth of any generation for the past 20 years. While this peaked in 2011 at about 49%, boomers still hold 44% of real estate wealth in 2021, compared to 31% of Gen Xers, the next richest generation. By this token, Gen Xers should have held the most real estate wealth as of 2017, but they're still far behind.
It's a sign that boomers are "aging in place," Kolomatsky writes, a growing concept that the pandemic has exacerbated. It's partly because some boomers are cautious of nursing homes in a Covid era, he added.
(Excerpt) Read more at businessinsider.com ...
I would think that, since the Baby Boomers are holding onto their jobs and the economy hasn’t expanded sufficiently to include their children for good jobs, that will result in a reduction in the value of their property.
That’s good for housing, unless you were planning on depending on the value to retire.
The Left is after your private property.
Molon Labe.....
We sold our property back in California, in late 2018, after owning it for 23 years. We did our part for the liberals who now own it (Silicon Valley veered hard left starting with Clinton, so it's a good bet they're lefties).
Can’t wait until they come after my generation. Generation Jones. We own our home in the burbs mortgage-free. We own vacation properties. Mortgage-free.
My wife and I are professionals. While our friends were buying new M-Bs and BMWs every few years we bought CPOs and kept them for 10 years. We bought real estate instead. So, we are guilty of what exactly?
Always, they are always after everything you have
Meanwhile, one of the world’s richest men lives in a $50,000 fold-up shack.
We bought less expensive cars and saved our money, worked and invested. To deadbeats, we look rich. To us we look like hard working Savers. Our investment guru at RW Baird loves us. He also drives an old car like we do.
White privilege? /easy target haha
Congrats regarding your prosperity!
“Boomers aren’t helping matters. The longer they hold onto their houses, the harder it will be for other generations to build wealth through real estate.”
Well, cry me a friggin’ river. We’ll sell only when we’re damned good and ready.
bookmark
“The Boomers are ‘aging in place’ The author says that phrase as though it’s a bad thing.
Got another idea of what might make homes difficult to afford for young people...government restrictions on building homes in places where there is a housing shortage.
You'd think that some enterprising people would maybe, oh, I don't know, build new houses for a profit or something. Maybe targeted for younger people's lifestyles and budget. I don't guess that would fit with the article's agenda though.
I'm only 5 years into my mortgage on my pretty small retirement home and I will be holding on to it as long as I need. 3 kids 10 grandkids 6 great grandkids and if they all want a piece of this pie they have to carve up my 1250 sq ft house into 21 equal pieces. I built the house small for a reason if you know what I mean.
***So, we are guilty of what exactly?***
You are guilty of thinking about the long-term and not living solely for the moment or “experience” of your peers. In other words, you’re a selfish prick. Those aren’t my thoughts towards you. That’s from the people you grew up around. I think you’re guilty of being smart and prepared. High fives!
It’s simple — the high price of housing is caused by basic supply and demand: (1) government restrictions decrease the supply of housing; and (2) increased demand by two-earner couples, more younger people living alone, and immigration. Older people are exerting DOWNWARD pressure on housing costs fleeing the high cost areas, selling their big houses, and moving into assisted living cubicles.
As an example based on personal experience in 2001 I bought a house in a decent neighborhood that was listed for 85,000 by owner when the elderly woman who lived there passed away.....the son came down to 75,000 during the first phone call when he found out it was my kids who always shoveled her sidewalk and raked her leaves etc....put 10% down on a 30 year note at 7%...the original appraisal was $95,000
2 years later I had an opportunity to refinance with a 20 year note at 3.5%...I only owed 60,000 so I jumped on it...
Everything was falling into place nicely when I got a call from the loan officer stating that what was previously a done deal was no longer possible because I no longer qualified for the loan based on the value of my home to the ratio I owed ( my equity)...and I was told that my house was valued at 45,000...and since I owed 60,000...I not only had no equity...I was now under water...
Needless to say I wasnt happy about this and decided to find out why my home value was lowered by half and by whom...
Turns out my bank sold my very good note to Freddie mac and Fannie Mae...and then my note was “revalued” along with millions of other homeowners in order to assign value to the worthless notes Freddie and Fannie held as a result of huge numbers defaults and foreclosures by low income buyers who should have never qualified for loans...
No way in hell did I lose half my home value in two years while simultaneously improving the property with a kitchen and bathroom remodel, a high efficiency boiler, new windows and new siding...
Yeah they in essence stole 45,000 from my main investment and largest asset to prop up worthless notes....and this was done on a massive scale...millions of homeowners...billions of dollars...stolen...
Luckily I caught it when I did as I was able to do a “cram up” by paying for a new appraisal...which still came back 10,000 short...but the appraisal of 85,000 was enough to get me under 80% and qualify for the new note...
Not building enough housing is the problem.
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