Dr. Housing Bubble 03/24/14

[Crewleader]

Baby boomers value real estate much higher than their offspring: 6 ways traditional buyers are entering high priced markets with the assistance of baby boomer parents.

Baby boomers are one of the largest home owners in California. They are also the largest mortgage holders since Californians love using their properties as a virtual ATMs. As time is moving by we are seeing a clash of generations when it comes to buying a home. The days of working at one company for 30 or more years is really a relic of the baby boomer past. Many baby boomers are also seeing their offspring coming back home with student loan debt that already rivals that of a mortgage in other parts of the country. Yet in many cases, their kids are happy and well rounded. I know many offspring of baby boomers and many have no intention of buying. They place a higher value on location, mobility, and having free cash to travel with close friends. The data also shows that the family unit is becoming much smaller and many are opting to have one or no kids. Why the need for a 3/2 then? This isn’t the 1960s where bigger households were common and one income was enough to live a middle class lifestyle. Yet some boomers are trying to assist their kids in buying their first home and in expensive areas, the passing of wealth is occurring in ways that may not be typical.

California’s aging population

For many baby boomers, they came of age when the dollar had maximum power and for the most part, housing was affordable across the state. Keep in mind that the California Association of Realtors has an affordability metric that now shows that only one out of three families in the state can actually afford to buy a home at current income and price levels. They factor in mortgage rates into their equation and it isn’t like the C.A.R. is anti-housing.

The fastest growing age group in California is coming from baby boomers:



http://www.doctorhousingbubble.com/baby-boomers-value-real-estate-much-higher-than-their-offspring-baby-boomer-real-estate-buying/

[Demeter]

1. Interesting but Incomplete

Life has stages, as Shakespeare pointed out.

And at some stage, a home is a necessity. Also, as a store of value and wealth, a home has more uses beyond a place to crash for the night and store stuff.

Just because one age group isn't nesting now doesn't mean they never will.


And by the way, my parents, who produced a Boomer generation, were "helped into the housing market" by my grandparents, who bought their first home, and later made a gift of it so the 'rents could move the equity to another state.

[pipoman]

2. The fastest growing age group everywhere in the US is baby boomers. .

Senior Living and healthcare is among the fastest growing industries in the US.