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 ...
This is officially no one’s business, but the homeowner.
That said, look to Biden to tax older people in houses he deems too big for them in order to pander to the younger voting block.
Probably will only apply to white homeowners.
Redistribution
Those houses belong to their owners, you commies.
Let’s see, I spend years investing $$$ to make my home just the way I want it, and they wonder why I don’t sell?
A home is equity, money in the bank. Why would someone choose a smaller bank account balance over a larger bank account balance?
We’re not refusing.
We just can’t FIND anything we’d want to buy!
We’re looking for 3 beds, 2 baths and an attached garage.
Nothing but fix-me-uppers or 4 and 5 bedroom particle-board palaces.
We could find more of what we want in another state at decent prices, but we don’t want to move away from our kid and grandkids.
There's a $500k exemption for capital gains on the sale of the primary residence by a married couple; half that for a single filer. See IRS regs for details.
Looking forward, don’t be surprised if the government places thomeless if homes of the elderly. So it go9es in a commie banana republic.
The writer was born in Sardinia, and is based in London.
Don't forget eviction moratoriums and delays, which can mean significant periods of no income from a unit.
Isn't that contingent on buying another home?
“If there are ‘smaller homes’ available for boomers to downsize to, then let the millenials buy those homes. They need starter homes, not mcmansions.”
100% logical.
Realtors don't get paid if people don't sell their houses.
One word, Bidenflation. New homes cost another 50-100k thanks to Biden.
Yep, if they are closer than 500 feet, they are too close.
Good post!
That’s a part of the problem with the assumptions of the article. Aside from the obnoxious implication that you’re supposed to give up your home before you give up the ghost, they are also assuming that there is a shortage of supply, everywhere. I even fell for that premise, to some degree.
The real problem is that a much larger segment of the population cannot afford to buy anymore, and that is a result of inflation and debt, interest rates, and the exportation of our standard-of-living through decades of trade deficits.
I think what the author is really saying is, I don’t want to look like I’m blaming Biden, so I’m going to blame boomers instead.
Forest Biden wants to wreck everything possible before he leaves. Why doesn’t he sell his 5 mansions?
“if they are closer than 500 feet, they are too close.”
We called one next door neighbor, “Gladys Kravitz” (not to her face). I actually have to think for a couple of seconds to recall her real name. The minute she’d spy one of us on the porch, she’d charge on over and start with the chit-chat. A very nice person, but it was too much.
The only time I spent significant time there was when they were on vacation, and when I had Covid. I knew she’d stay away when we have Covid. She did.
Yep. Those Baby Boomers are just selfish and greedy. They need to learn to share.
In the process of downsizing right now. Very difficult. But I think it’s inconsiderate to stick one’s kids with getting rid of the junk.
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