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Boomers Are Refusing to Give Up Their Large Homes (creates inventory problems)
Newsweak ^ | 5/02/24 | Giulia Carbonaro

Posted on 05/03/2024 5:10:58 AM PDT by Libloather

Baby boomers are refusing to downsize in their golden years, according to a Redfin study, which found that the generation born between 1946 and 1964 owns nearly three in 10 (28.2 percent) large homes in the nation—nearly twice as many as millennial households with kids (14 percent).

This is happening despite boomers' kids having long left the nest and their households having shrunk to one or two people. Instead of selling their large properties and moving to a smaller place, boomers are turning the extra bedrooms into hobby rooms and guest rooms for visiting family members.

Read more: What Is a Home Equity Loan?

While it's understandable why boomers are holding on to their mortgage-free large homes, which are likely cheaper than what a new, smaller property might cost them now, their choice to stay put is having a profound impact on the U.S. housing market, contributing to keeping inventory tight. Some 54 percent of boomers own their homes and no longer need to pay a mortgage, according to Redfin.

The historic supply shortage in the country, which is mainly because the U.S. hasn't built enough homes since the 2007-2008 crisis, has kept prices up, even when demand dipped between late summer 2022 and spring 2023, triggering a correction at the national level.

"The number of homes for sale is near historic lows and that is in part due to baby boomers holding on to their homes and aging in place," Daryl Fairweather, Redfin's chief economist, told Newsweek.

"The larger problem is that there isn't enough new construction being built to meet demand from Gen Zers and millennials or from baby boomers who would want to downsize in retirement."

(Excerpt) Read more at newsweek.com ...


TOPICS: Business/Economy; Culture/Society; Front Page News; Government; Politics/Elections
KEYWORDS: boomers; homes; house; housing; owner; realty
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To: Presbyterian Reporter

My 25 year old John Deere lawn tractor is giving me electrical problems. Which I can not figure out what is wrong with it.
Also, I can not seem to get a guy over to look at it. Meanwhile, I have watched a dozen YouTube videos on how to fix it. I certainly have gotten my money’s worth out of it. It was $3300 when I bought it new in 1999.

However, the size of my lawn now takes the above 42” mower two full hours to mow. So, I may just buy a Skag 52” or 61” commercial mower. $11-12K.


121 posted on 05/03/2024 8:10:50 AM PDT by woodbutcher1963
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To: Libloather

Did builders forget how to build big houses?


122 posted on 05/03/2024 8:14:27 AM PDT by moovova ("The NEXT ELECTION is the most important election of our lifetimes!“ LOL...)
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To: Libloather

And move where??? And pay Biden’s ridiculous capital gains taxes?

All that’s going up around me are apartments. I haven’t seen a new single unit house. It’s all apartments and town homes. You’ll own nothing and like it, or not...


123 posted on 05/03/2024 8:19:39 AM PDT by Organic Panic (Democrats. Memories as short as Joe Biden's eyes.)
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To: TexasFreeper2009
Biden's trying to throw a monkey wrench into that strategy...by raising long-term capital gains rates AND taking away the basis reset to current value when parents pass. I would not be surprised to see him propose eliminating the $250/$500k one-time exclusion for home sales. You KNOW they've been eyeballing that for a long time.

'Biden's proposed capital gains tax hike will also hit many families when parents pass away,' Kartch added. 'Biden has proposed adding a second Death Tax (separate from and in addition to the existing Death Tax) by taking away stepped-up basis when parents die. This would result in a mandatory capital gains tax at death – a forced realization event.'

https://www.dailymail.co.uk/news/article-13350125/biden-proposes-capital-gains-tax-hike-100-years.html

124 posted on 05/03/2024 8:31:16 AM PDT by moovova ("The NEXT ELECTION is the most important election of our lifetimes!“ LOL...)
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To: txroadhawg

Lol...there’s no room left in the rented space at the gated storage facility. The good side...all of that crap is carefully boxed/labeled...and will make it easy for the kids to carry it directly to Goodwill. I predict they’ll never even open the first box.


125 posted on 05/03/2024 8:35:54 AM PDT by moovova ("The NEXT ELECTION is the most important election of our lifetimes!“ LOL...)
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To: Presbyterian Reporter

Her Twitter (currently known as X) is locked.


126 posted on 05/03/2024 8:36:47 AM PDT by moovova ("The NEXT ELECTION is the most important election of our lifetimes!“ LOL...)
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To: Cold_Red_Steel

“You ought to get them appraised.”

My brother and his wife who inherited the place are in the process of doing that. They’re familiar with how to research these things, and have made quite a bit of money doing that over the years.

When he bought a Singer Featherweight sewing machine for $20 at a yard sale, researched it, and sold it for a few hundred, he was severely reprimanded (by me), as I really want one? :)


127 posted on 05/03/2024 8:55:39 AM PDT by MayflowerMadam (Navarro didn't kill himself.)
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To: Libloather

There are towns throughout the U.S. with large homes on tree-lined streets. As the urban center caught up to the neighborhood, the large homes were converted to multi-family dumps and slid into ruins.


128 posted on 05/03/2024 9:13:25 AM PDT by T.B. Yoits
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To: luckystarmom

Good idea.

Condolences on your loss.


129 posted on 05/03/2024 9:25:11 AM PDT by Bigg Red (Trump will be sworn in under a shower of confetti made from the tattered remains of the Rat Party.)
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To: Bigg Red

Yo Carbonaro,GFYS


130 posted on 05/03/2024 9:38:34 AM PDT by skinny old man (Still lurking and posting after all these years(27 yrs ?)(more ?)(seems like more...))
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To: MayflowerMadam

Why would ANYONE give up a house on the river, with acreage, for a home in a development with an HOA? That’s just crazy to me. Hubby and I knew way back in the 80’s no way were we ever going to get a house in a development. We wanted LAND. Now have just under 2 acres, right up against a protected forest/wetland that the housing development BELOW us pays for so it stays that way. Our dog gets to play all day in the forest, chasing rabbits, etc.


131 posted on 05/03/2024 10:29:48 AM PDT by Mama Shawna
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To: Libloather

They still want to have room to have their children and grandchildren over for weekends and holidays; they paid for it and they earned it.


132 posted on 05/03/2024 11:07:35 AM PDT by Albion Wilde (Either ‘the Deep State destroys America, or we destroy the Deep State.’ --Donald Trump)
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To: silverleaf

“This is a better arrangement, comrades. More just.”


133 posted on 05/03/2024 11:14:57 AM PDT by crusty old prospector
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To: Lurker

Good point.


134 posted on 05/03/2024 11:24:05 AM PDT by mbrfl
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To: Lurker

Yeah, the way it’s written is more like an editorial than news.


135 posted on 05/03/2024 11:26:40 AM PDT by ding_dong_daddy_from_dumas (Re-imagine the media!)
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To: Sacajaweau

I’m a landlady...surely you jest. Hopefully you were being sarcastic. Insurance has doubled, property taxes have at least doubled, maintenance/building materials/repairs again doubled. Utilities have easily tripled. I don’t think you’d want my water bill that I pay for my tenants.

I am in no way “greedy.” In fact my tenant’s units are better than the one we live in.


136 posted on 05/03/2024 11:29:15 AM PDT by AbolishCSEU (Amount of "child" support paid is inversely proportionate to mother's actual parenting of children)
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To: MCF; Sacajaweau

BINGO! And then there is the horrific tenant pool since the Eviction Moratoriums ™ All of them have Emotional Support Animals and can even feed themselves. 80 to 90 % are on some sort of assistance, are extremely entitled and try to boss you around before they even fill out an application.
They all complain about “black mold” (98% housekeeping issue) and stuff they caused. They all have terrible credit but tats, well manicured fingers, pedicures, exotic hairdos and smokes/vapes.

They all think that paying rent is optional and should be abolished. The last one I didn’t renew with literally complained that he was getting his neighbor’s mail... TO ME as an excuse to pay rent late which, in my book, is a no no unless you’re literally DEAD.

And now we have “Good Cause” which will only hurt the handful of good tenants left.


137 posted on 05/03/2024 11:36:50 AM PDT by AbolishCSEU (Amount of "child" support paid is inversely proportionate to mother's actual parenting of children)
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To: Mama Shawna

“Why would ANYONE give up a house on the river, with acreage, for a home in a development with an HOA?”

That was my mindset when Hubby decreed that we would move. (It’s good to be King, y’know.) That’s why I cried when we moved, and for weeks after that.


138 posted on 05/03/2024 12:58:01 PM PDT by MayflowerMadam (Navarro didn't kill himself.)
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To: MayflowerMadam

No way would I have gone along with that. If we both can’t agree, it doesn’t happen. My hubby occasionally expresses the desire to move to CANADA (of all places.. Vancouver Island specifically) mainly cause of his concern about Mt. Rainier blowing it’s top (pretty much in our backyard). I told him he’ll be living by himself. No freaking way am I moving to that commie country. I love my home and have no desire to move, even though I live in true blue Puget Sound.


139 posted on 05/03/2024 1:34:03 PM PDT by Mama Shawna
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To: Albion Wilde
They still want to have room to have their children and grandchildren over for weekends and holidays; they paid for it and they earned it.

As much as I would love to move 4 hours south to the Hill Country, it's not happening. My 3 grandkids live within 30 minutes of me, and my grandson is even closer, attending a middle school a few minutes from our house. I'm still working full time, a few more years if the health holds out.

140 posted on 05/03/2024 1:40:58 PM PDT by Night Hides Not (Remember the Alamo! Remember Goliad! Remember Gonzales! Come and Take It!)
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