They are not in a position to buy a 400- 600K home.
Expect a free market adjustment.
I had a friend of mine movie from LA to Phoenix a few months ago. His home is very nice ... much cheaper than the same size in LA. in fact, everything was cheaper.
[[Baby boomers may put ‘tidal wave’ of 21M homes on market — but who will buy them?]]
Illegal aliens of course- with ‘government’ money
Plus, many Boomers as they age are looking to downsize which puts more single homes on the market. We’re thinking about it. Oh well, Millenials, looks like you’ll be going into your 30’s while living in Mom’s basement because of your worthless college studies. Still, you can always hang out Starbucks and bitch about sexism, racism, genderism, your insane student loans, and vote for communism. Haha! Enjoy your stupid decisions you non-thinking children.
“Baby boomers may put ‘tidal wave’ of 21M homes on market — but who will buy them?”
According to my sources, the day that us Baby Boomers put our houses on the market is May 4, 2021. On that day, we’ll unload them all!
Sometimes a correction is needed
Chinese.
There is a massive land grab under way. I would say that people with paper billions will be only too happy to trade floating currency for limited resources like land. Any talk that this property is worthless in the marketplace is nothing but an effort to drive down the price.
Not only can they not afford them, many of them don’t want them. My kids could not possibly care less about having a home and a yard. They don’t want the responsibility.
There is a retirement community some 100 miles from us that is flush with golf courses, lakes and hills and lots and lots of expensive homes that are / were the pride and joy of the owners. The crowning achievement for many of them. Some are simply fabulous. When the owners die the kids don’t want them and they become problems. They can be bought cheap.
Ditto is happening in some rural areas. Not great homes but small farms that were the pride and joy of the owners who are now dead or dying. They first decline and then they are empty for years and fall into disrepair. There are many of them in this region that are vacant. Some are finally being bought but the prices have to go way down. Wash, rinse and repeat. The circle of life goes on somehow.
My kids don’t want the farm we retired to. I’m building it and maintaining it as long as I can for us, my wife and I, and then it will become someones and it will not matter any more what becomes of my work because I will be dead. And the beat goes on.
There are not many legacies that last very long. We went to WinRock, Winthrop Rockefeller’s place that he built in 1953, he died sometime in the mid-70s. His legacy show farm is just about done for. Oh it still looks pretty good but is now a conference center run by the University of Arkansas. It is not what he envisioned though and people are forgetting him. The docent there was surprised we had come just to see it. Most come only for conferences.
What was it Solomon said about life being just a vapor and man having only one purpose but to serve God and keep His commandments?
Maybe a good side business or main one is to provide low cost maintenance services to seniors in these locales so they can continue their retirement years in their own homes.
They will sell at the right price.
Those properties that are worthless will, like much of the dinosaur media, not sell at any price.
Besides, congress is going to rebuild everybody’s house during the next 11 years anyway. Make them all green, you know.
Who will buy 21 million Baby Boomer homes? We have 30 million illegals here, with far more on the way as soon as the democrats seize control of our government. Throw in “guaranteed basic income”, and the taxpayers will pay for these homes for undocumented democrats. Disgusting.
If the US population at the end of the boomer era, 1965, was 190 million, and the population at the beginning in 1945 was 140 million, then there were about 50 million boomers over a 20 year span or about 2.5 million a year. Over the next 50 years we added about 110 million people, or about 2.1 million per year. Strikes me that a lot of houses are needed. Some people like old ones. Some like new. The lousy ones will cost less. The good ones will cost more. Let your house run down and you will have a hard time selling it.
Recently had my house appraised. There are so many foreclosures in the area going for a song, I will certainly lose money.
I doubt very much that people in our town are aware that 50% of the town population are living in rentals.
Always amusing to look at threads like this...
People blame immigrants... (IMMIGRANTS? ILLEGALS? They drive up the cost of housing? FFR?) or the laziness of the kids who are not willing to work to buy these Gatsbyesque status symbols, or ... well anything but the real culprit.
The FEDERAL RESERVE has been at the helm of destroying the value of the dollar. The channels of inflationary asset storage FOR that deflated dollar is an irrelevant sideline. They happen to be real estate, medicine, and academia, but could just as easily have been hubcaps, beanie babies and kumquats, had the tax policies been different.
The imperial dictates of DC, and the insane flushing of increasingly worthless dollars into real estate (not to mention the military, “social security” (ha!), and other welfare projects) is the cause of this.
I no longer believe it is possible to MAGA, and that rather we are going to have a gigantic explosion of this debt/currency bomb. Trying to protect myself with RURAL property with some sustainable aspects, a few means of self protection, precious metals, cryptos, and a renewed interest in “soul fortification” (memorizing passages from the bible).
It is going to be a ghastly day when this thing comes unwound, and it will
My poor, rural Florida county, Wakulla, is in the midst of an unprecedented building boom. They are mostly 900-1100 sq ft starter homes and mobile homes. This follows about a year of the best job market anybody there can remember. God bless Trump.
As far as the half million dollar homes the earlier generations will leave, they are apparently still selling up north. I base this on the fact that several larger homes near me have sold for absurd money to norther transplants.
Granted, these are just my observations on my tiny part of the market.
they wont continue as 400 to 600K homes in that case.
However overseas folks may afford them.
and realistically a 400K home is not expensive in this inflated currancy
In my neck of the woods buyers can afford the home, but not the property taxes.
There will be a free market adjustment, but as always real estate is about location.