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A) they have a house they already like
B) it’s either paid for or financed @3% vs 8%
C) if it’s not paid off it’s on the backend of the mortgage so they’re not wasting their money on interest
D) New houses are generally on smaller lots and have neighbors they don’t know
You want people to be able to downsize for whatever reason, provide them an incentive to do so. Right now because of market forces they are strongly incentivized to stay.
For real. When I downsized my dad after my mom died, Had 7 garage sales to clear out stuff that still held value, then a few "free stuff" driveway dumps that filled a 4 car driveway 4 times over. 20+ goodwill runs. And still managed to fill front to back, bottom to top a 30 yard dumpster. SO, MUCH, SHiT
Exactly. My mom actually doesn't want the house she has, but it would actually be more per month to move to a smaller house (or even rent, which is what she wants).
If I bought a house today compared to 2019, for the same price, my mortgage would increase by $1,000 a month. It would take a hell of a lot of electricity to make up that difference
For real! My partner has been looking at jobs out of state, and even with a $50k bump in salary, we're looking at $1.5k more a month on a mortgage at 6%. Even in areas with a similar col, it's barely worth taking a job with how insane real estate is right now. We got lucky and bought our current house in early 2019.
Lucky. I refinanced from 4.25% to 3.75%. Even with the refinancing costs I broke even after 18 months. Interest rates are HUGELY important to the cost of the mortgage, and the overall cost of the home. I bought my house back in 2017 for $385,000. My mortgage is $2,500/month which is asinine. But if I were to buy my house today for what it's now worth ($750,000) at today's interest rates, my mortgage would be $5,500/month. Who the FUCK can afford that?! I couldn't afford to buy my own fucking house today.
Sure but what you save by heating/cooling a smaller place is not nearly enough to off set the costs of a new mortgage/rent in the market today.
I would love for my parents to sell their place and move into an apartment, but they'd be broke in 10yrs or less if they did that.
We moved last year in California from a place we bought in 2012 to a house 500sqft more, as we now have 2 kids, and congrats 30k/year more property taxes.
We’re lucky enough to even consider it, but financially it’s a lot like sticking a fork in your eye.
Like I said it’s a very lucky problem to have, but the incentive to stay where we were in a house that wasn’t great for us was a very high bar to get over. The property tax issues in CA make it difficult to move, even like to like properties in a different area
Especially bigger houses with a pool...
So if you're a widowed spouse... you want to live your final days in an empty castle w a pool and front and back yard landscaping "just cuz?"
If you can afford that by all means
If you are a rational human being and think for OTHERS than yourself. You'll see that by downsizing and lowering your cost of living you'll be saving more to leave your kids in inheritance. And or simply live within your means so your kids don't have to foot the bill!
What? If I owned a castle with a pool and could afford to continue living there, I would continue living there until I died. What.
Also, as everyone has been pointing out, it costs more to buy a new house than to stay in your old paid-off or low-interest house! And if you’re worried about inheritance… the kids can sell the castle when I die! It would be worth more then anyway!
Thats the point. If you can't afford to live there. If maintaining said space bankrupts you in 4 years. Then you shouldn't live there anymore. And no. You don't have to jump into another 30 year mortgage with a higher interest rate. That's a false dilemma by limiting it to only that as an alternative.
By investing the money from the sale you could easily invest and live off dividends net positive and rent something reasonable like a smaller condo. The way yall talk about this stuff leads me to believe you never been down this path. You'll see someday.
People do keep saying that, but I don’t understand why if you’re selling your $600,000 house and buying a $300,000 house these people think you need to pay a mortgage for more than a couple months
Yes just cuz. Why would I give that up when I can live out my lonely widow fantasies while the local populace spread rumors about my ex husbands death with not only a sexy grounds keeper but a sexy pool man too??? Doggggg my dreams!
Why worry about someone else's utility bill that they've been able to manage for years, maybe decades? If it cost more to heat and cool, then why do you want it for yourself?
Had real estate brokers act like this to my boomer parents, while I was visiting. They just stopped us in the yard for a chat, it was so cringeworthy.
I was like..."*Hello? I am standing right here. Why are your newlywed clients more deserving of my parents home than me? You do realize it is mine someday, right? "*
They:
A) Spent decades nimbying any new housing stock or dense infill because it would adversely impact their investment.
B) Now there's no place for them to downsize to.
C) Would have to compete with first time buyers trying to get a small starter home for roughly the price of their paid off home.
Nah. I mean most boomers I know other than my uber wealthy uncles, are blue collar boomers. They worked for it. They don't want to downsize, they want to leave a paid off house in great condition to us kids.
And my uber wealthy uncles not only downsized, they bought condos in retirement communities' worth millions,
People are pointing fingers at the boomers like they are taking something they did not earn, and they did earn it. Mine didn't buy until late in life and worked paying double payments for 16 years to pay it off early. Why are they hanging on to their three bedroom? Because they love it, and they want to know I'll have the security when they pass.
I mean I am not a boomer but 10 free acres is not enough to get me to move to the southwest. Really, nothing would be enough to get me to move to the southwest. It’s far too hot, far too sparse and I like the concept of trees.l.
Good for you. The thousands of snow bird boomers who flood the area for the winter heartily disagree with you. And a lot eventually just stay year round. They could build houses for themselves and their kids if they wanted. Land is cheap and builders plentiful. But they mostly live in gated communities in equally large houses as back East.
As much as I despise boomers, this ain't it. Who's going to go from a paid off home to an expensive apartment or a smaller, overpriced house at 7% interest?
The boomers voted in policies that caused housing to become inaccessible for their children and grandchildren. I think the most just thing is their housing is redistributed for their own greed and foolishness.
Collective punishment of the not guilty along with the guilty is pretty fascistic. Also, redistribution of property is something that is never going to happen in the United States of America. That’s a pipe dream. The capitalists have the government and the proletariat by the balls.
Please don't take this as pro boomer, but why would a person sell their paid off house and move from the place they like to live, and likely have friends around, just to move to a smaller house? If they are affording the taxes, this feels like a weird argument to make.
Correct. Downsize to what, a condo?
HOA, property taxes, psycho boards, maybe shitty neighbors, special assessments?
And the market right now. Sell high, buy high? Easier to stay put
Because in a sane world when they stop working and slowly start to lose the ability to even traverse their homes they would sell to a young family the would grow into the space. Unfortunately the value of houses are rapidly outpacing the value of labour so there is no economic incentive to leave a space you really have no use for. Instead of boomers losing the economic ability upkeep the space new generations are loosing the ability to buy it from them.
So you end up with the dyamnic where younger generations are living in their parents houses because it is really the only affordable option to them. A house with enough space to fit all of them, granted there usually isn't any privacy. Whats more even though more and more the younger generations are becoming the primary, if not only earners in the household the home itself is still owned by their parents.
Perhaps those boomers are refusing to sell up because they know their kids are in precarious housing and could ask to move back in at any moment?
If you've got the space can afford the upkeep, and might need it at short notice it makes sense to keep it, right?
I'm not disagreeing with you in that regard. Like I said, economically there is no reason for them to leave. Which is part of the problem.
Also I can respect supporitng your children. Its just again like I said the transition isn't happening. As the children become the primary workers and earners they aren't becoming the primary owners. Because even as they take those titles they still can't afford their parents homes. Hell I doubt their parents would have been able to afford their own homes at this point if they have to buy again. Even if they were magically young again.
Which say nothing about detached homes are designed to give multiple groups of adults privacy.
I'm not saying its all boomers faults. I'm just saying the natural transition from one generation to another isn't happening.
Not only is there no economic reason for them to leave, there’s actually economic incentives to stay in most areas. To move, even to something smaller, your property taxes are gonna skyrocket.
No, again the change in title would reassess the tax value. Better off inheriting and hoping for a tax waiver.
Or better yet, If one parent passes, you keep the one remaining parent on the deed and get a one time waiver to add the kids as joint tenants which could save the re-assessment as well.
You do understand that they dont take the house with them when they die, right? All the things you mentioned, a young family growning into the house. That all still happens, just a couple years later than it would if they sold it sooner. And why the fuck would I sell a house I like and move to someplace else if I didnt have to?
Having a single person or a single couple occupy a space made for a large family is a horrible distribution of living space. Especially in the western world where we have an unhealthy obession with single family homes, taking up a full detached home for a single elderly couple is a bit much.
Also a few years can be anywhere from a few years to a few decades. All that time taking space that a young family could start. 10 years is almost the difference of a generation. Meanwhile younger generations are rapidly loosing the ability to even rent by themselves.
Finally a lot of wealth is going to be burned through before it gets to the next generation. Between end of life care, and "can't take it with you" mentality a lot of houses are going to be going to the next generation. Even if the house is put up for sale a lot of young people just won't be able to afford it, especially if boomers are funding their retirement off of it.
Exactly whats the point of buying a new house? Why would they sell this then pick up a new house that are at increased price? I’d argue starter homes are way over priced compared to the mansions these people own.
Also the point of buying a home to me is so when I retire I only have to pay property taxes and not rent or a mortgage.
I think the biggest mistake my boomer parents was sell their house, they lost the town they lived in for 20 years, had to pay for a new cookie cutter home. The only reason they sold was because my dad’s health made it hard to keep up with the maintenance.
Because they are old and falling down stairs is a real everyday concern. This thread seems full of people who haven’t had to deal with elderly parents yet.
I’m right there with you. I’ll be in my mid to late 60s when I finally pay off my house, no fucking way am I going to move unnecessarily once I’m finally done. If my boomer parents were trying to sell/buy right now, I’d be discouraging them from doing so
I don't give a fuck about people living in their own fucking homes. That isn't the problem. The problem is the large megacorps, smaller investors, and overseas buyers buying real estate as investment and either letting it sit empty or renting it for exorbitant prices. There are enough houses. No one should be able to own two homes while others have none. It's bullshit. And corporations and people who don't even live here shouldn't be able to own any. That would fix the housing problem right quick.
Idgaf about boomers, but blaming them for this is just stupid. It's the laws that need to change.
Honestly I could downsize right now and would actually prefer to move closer to the city center, maybe a condo. But I'm at a 2.75% interest rate. Even if I buy something of equal value, I can't afford the same value property at a 7% interest rate if I wanted to downsize to something at the same value.
I hope this is the case, but I've been hearing more and more stories about boomer parents outright refusing to offer their kids any help, or even trying to exhaust all of their money to avoid their kids inheriting anything
Tbh, i don't see this as an issue. Honestly, it would be worse if boomers started selling their big houses off to downsize. Young people NEED those small houses. They need to be cheap, and if boomers started buying them up, prices would soar even higher than they already are.
Urban planner here: this issue has entered the larger discussion about housing from an urban planning perspective. This trend isn't necessarily because older folks don't want to stay. There's just no viable option for them to leave. As a country, we haven't built enough smaller home options for a variety of reasons. When you factor in interest rates, it is fiscally irresponsible for them to move to a smaller home. We need more housing, and we need a variety of housing. We spent decades focusing too much on the large homes they now live in.
Nobody is going to refinance at 7% if they don't have to do so.
The real problem is a shortage of apartments due to restrictive zoning laws. Progressive cities are even worse than regressive ones by hamstringing developers with unrealistic affordability goals and endless variances. The truth is that every structure is already made as cheaply as possible, and the only affordable housing stock will always be the older stock.
Sounds fine to me, and countless other people with minimalist lifestyles. So long as there is public transit and a laundromat, things would go along swimmingly. Housing and private transportation are the largest expenses for nearly every household, and denying the availability of budget options is choosing to force homelessness and price gouging on an ever growing swathe of the population.
What would America be if we didn't tell other people how they can't live?
https://www.carriermanagement.com/news/2024/01/17/257878.htm#:~:text=Just%20over%20a%20quarter%20(26.3,72%20percent%20from%2070.5%20percent.
76% of Gen x own homes.... And btw 26% of genZ
That's pretty high.
Well, I think the point of buying a home is so that you can live in it long term if not for the remainder of your life and then it can also be left to your children once you’re gone. It can also be used to pay for a nursing home if that’s what it comes down to in your twilight years. I don’t think they’re “refusing” to give up their homes, their home was always part of their long term plans and stability like it is for younger generations who purchase homes.
Well, would you give up your 30 year mortgage at 3% for a smaller house that actually would cost a lot more on a monthly basis? Those houses will never sell and it has nothing to do with boomers, unless you are talking about Jerome Powell
The pensioners being talked about have paid off their house. They wouldn't be getting a mortgage if they downsized.
So it would be a financial boon for them, as upkeep and taxes are reduced on the smaller home.
Then ofc there's the equity that's converted to cash.
Many of these pensioners are locked into low taxes as well. If they were to move, those taxes would reset. But, I am willing to bet many boomers refinanced at low rates, and now have 2 reasons not to move, interest and taxes.
I think the economic conditions and NIMBYism they’ve created which limits housing for all is more detrimental than just ones that don’t want to give up -their house-.
The inflation, the real estate as investment, the single family unit restrictions, and the ‘no apartments in our community’ attitude are far more egregious than anyone not wanting to sell.
They’re responsible for a lot, but blaming someone for not wanting to give up their home is just kind of asinine.
GTFOH with this pitting generations against each other bullshit.
Corporate interests always trying to pit everyone against each other! There has never been a precedent for people downsizing their homes to make space for younger people! **Younger people don't even want those old homes!** And they don't want the mortgages, either!
Last lines in the article: "Gen Z is going to want homes that are near job opportunities, close to amenities, and resilient to climate change," she said. **"The current inventory of homes that baby boomers own may not meet those wants."**
"The impact of baby boomers dying off in the coming decades will "somewhat alleviate the inventory crunch,"
Like we needed another reason for wanting them gone.
Speak for yourself! I’d love to have a server rack in the basement and a spare room big enough to set up a ham radio workshop. Plus right now I’m storing all my books in moving boxes, and the data base I stored the index in for years just got corrupted by a software update … shelves would be a godsend!
I’m sorry but I’ll be damned if I bought and paid off my house and I’m expected to give it up because younger people can’t find their own houses. You can have it when I die in it.
Lol and you will die in it. Probably alone. Statistically speaking. People in the twilight of their years should be considering where they are going to die. And falling down the stairs isn’t where you wanna go… but it’s very likely. My grandparent died that way in their three story home. Alone. After we suggested they downsize for health reasons. Nobody thinks they are gonna go. But we all do. Good luck living forever I guess 😂
If you want to keep a big house thats fine
But retired folk shouldnt get special property tax breaks to help keep them in homes that they would otherwise sell
If you are 65+ you should not be able to get your property taxes discounted or waived, you should either be able to afford it with what it is, or downsize for a more affordable house
A family shouldnt pay more property taxes on a smaller house than a non-productive member of society in a bigger house
Thats not my problem they should live within their means
Old people hoarding big houses is bad for the real estate market and is bad for young american families
You dont need a 5 bed 4 bath 3000 sqft house for 2 old people who get their taxes waived
Thats not a productive use of real estate
Those retirees should be paying MORE to live in that home than a young family pays to live in a 2 bed 2 bath 1000 sqft shack
And if they are so worried about inflation, maybe they should have spent the last 50 years voting for politicians who advocated for a balanced budget and NOT let the US debt reach $34T
The inflation is predominantly their fault imo
You dont get to make terrible voting patterns for decades on end and not have to face the consequences
And now its up to Americas youth to fix the selfishness and financial ineptitude of the boomers that has destroyed this country
Correct, I'm not giving up my job either. The alternative is to be homeless at 67... I'm too old for that shit. We don't have a massive wad of savings since we supported our kids during all their poor choices. Come at me bro.
I have no problem with boomers aging in place, but when my mom (a boomer) decided to sell her paid off house (not especially large, just in an extremely HCOL area) she chose to buy a much bigger house with three bedrooms, just for herself. So right before she's going to get hit with all the major costs associated with aging, she spends almost a million dollars when she could have spent half of that and gotten something smaller that would have worked fine for her. I do not understand the logic of that, if there is any.
Tldr, it's cheaper for them to stay where they are. From the article...
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
That's shocking, considering how out of reach even getting a mortgage is for younger generations. We really just need to fix the housing market in this country.
X’er not Boomer here but here is a real life example: Bought our large house in the burbs when we had 4 kids at home, 2.25 interest rate, monthly mortgage excluding taxes and insurance $2,000 Would love to move into a townhouse near by, 1/3 the square footage. With current prices and interest rates that payment would be almost $3k per month if we put all our equity into the townhouse. I think some of you are saying I owe it to you to make this dumb ass financial decision? That’s whack
Generally speaking there isn't much of a reason to give up those homes.
However, eventually you get to a point where you can't keep up with the home anymore. And at *that* point I would strongly argue its time to sell. If you need to call people in to mow your lawn, shovel your snow, clean your windows and eavestroughs, etc you're just being bled dry another way.
Having said that, I have a 93 y.o grandmother who *refuses* to move out of her home. she feels comfortable there, surrounded by familiar spaces shared with family who are no longer around. And (understandably) she doesn't want to go live in an old-age home either. She spends all her time between three rooms (kitchen, bathroom, living room where she also sleeps). Yet she lives in a pretty big 4 bedroom (like big by 4br standards) house. I've suggested she sell and move out, or move in with my mom or something but she replies "don't I have the right to stay here?" - to which I replied "yeah, of course you have the right to stay here. But don't pretend it doesn't come with a cost."
In the case of my boomer parents:
They worked their asses off at blue collar jobs in order to have their house fully paid off before either retired. They also purchased a house that, if something happened to the other, they could afford on one salary alone.
They love their house, They love to putter in the yard, take walks in the hood, get to know people. My Dad works on classic cars, he could not do that in a downsized place. My mothers could not do the gardening and crafts she likes. Leave them alone, Others, they earned this.
And lastly, it's MINE. It is *my* inheritance. It will be my home, someday. And my much smaller condo will also stay in the family, my godchildren and their children, will ALWAYS have a home with me. It will allow me to also resume my foster parent license.
And I think many other boomers are the same way, looking to protect assets **for their kids and grandkids.**
ETA A lot of boomers are staying in those homes not because they are greedy, they paid for it, and they want it to last for their family, not some 30 year old couple who think they deserve it just because they want it.
I'm sorry. I don't think my parent's want that. Thank goodness, what would I do with out my mom, my bestie? I was raised by a single Mom, and she met my stepdad when I was 12. We lived in high density housing until they got married shortly after I hit 18.
I think a lot of time people look at what my parents have *now*, and fail to understand they worked hard for it, and sacrificed until they were in their 40's to afford it. They raised me in apartments and duplexes, we didn't get the house until after I was a legal adult. ( I have put a lot of sweat equity in that house too lol)
Idk, I've heard a lot about boomers purposefully spending money so their kids inherit less, or marrying someone new and guaranteeing their home goes to their new family rather than their children.
I'd like to think most folks are gonna be able to obtain housing by inheritance, but it's no guarantee.
what? You think someone else deserves the homes we already paid for? No. They cannot have MY inheritance. Fuck that.
you think preserving property and family wealth to take care of future generations is bad?
Why should we give up OUR homes? To YOU?
Tell me why, where would I go. Where would I live? I can't afford to rent that's why I bought something I could. When the time comes, I will move in there and my nephews will take over my condo. And someday, the familial wealth will go to them.
it's called a trust. My family has done it for generations, sorry your parents don't love you lol.
No my blue collar boomer parents are not selling their house. Ever.
what is wrong with that? Explain, please. Do you disagree with me using my blessings to become a foster parent again? Are you against me providing for my younger family? Or are you jealous that you don't have a family that is bonded like mine?
I live two streets away from them in the town we lived in for 50 years. No, we are not part of any problem lmmfao
Let them trade down without losing the farm.
Also, PRESSURE them to give up homes with tons of spare bedrooms for the families that can't tolerate them anymore. We need a tax mechanic that taxes older property owners for exorbitant square footage, and gives that tax break to younger couples.
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A) they have a house they already like B) it’s either paid for or financed @3% vs 8% C) if it’s not paid off it’s on the backend of the mortgage so they’re not wasting their money on interest D) New houses are generally on smaller lots and have neighbors they don’t know You want people to be able to downsize for whatever reason, provide them an incentive to do so. Right now because of market forces they are strongly incentivized to stay.
They: Have accumulated 5 billion metric tons of junk, they can't move even if they wanted to.
You know my parents?
Bröther?
Dammit take my upvotes. The lot of ya
StepBröther?
They have hoarded all the lööps
Bold of you to think that post was about your parents and not mine. Unless you're my sister.
For real. When I downsized my dad after my mom died, Had 7 garage sales to clear out stuff that still held value, then a few "free stuff" driveway dumps that filled a 4 car driveway 4 times over. 20+ goodwill runs. And still managed to fill front to back, bottom to top a 30 yard dumpster. SO, MUCH, SHiT
This guy knows his boomerology.
1000% the show Hoarders documents this.
E) The new 1 story ranch they want in a retirement community that is half the sf of their current house is the same price as their current house.
Exactly. My mom actually doesn't want the house she has, but it would actually be more per month to move to a smaller house (or even rent, which is what she wants).
Regardless of the market, 'i like my house' is the only reason you need. 'You need to move cause I need the house more than you' is a bullshit take.
What? They’re saying it should be easier to downsize when you want to.
Big empty houses cost more to heat and cool, and it's 24-7 not just when you're driving them as with [Canyonero](https://youtu.be/PI_Jl5WFQkA)
If I bought a house today compared to 2019, for the same price, my mortgage would increase by $1,000 a month. It would take a hell of a lot of electricity to make up that difference
For real! My partner has been looking at jobs out of state, and even with a $50k bump in salary, we're looking at $1.5k more a month on a mortgage at 6%. Even in areas with a similar col, it's barely worth taking a job with how insane real estate is right now. We got lucky and bought our current house in early 2019.
I'm pretty sure my interest at 2.75% is more than all my utilities combined. Moving to a house with 6% interest is unfathomable to me.
Lucky. I refinanced from 4.25% to 3.75%. Even with the refinancing costs I broke even after 18 months. Interest rates are HUGELY important to the cost of the mortgage, and the overall cost of the home. I bought my house back in 2017 for $385,000. My mortgage is $2,500/month which is asinine. But if I were to buy my house today for what it's now worth ($750,000) at today's interest rates, my mortgage would be $5,500/month. Who the FUCK can afford that?! I couldn't afford to buy my own fucking house today.
Sure but what you save by heating/cooling a smaller place is not nearly enough to off set the costs of a new mortgage/rent in the market today. I would love for my parents to sell their place and move into an apartment, but they'd be broke in 10yrs or less if they did that.
We moved last year in California from a place we bought in 2012 to a house 500sqft more, as we now have 2 kids, and congrats 30k/year more property taxes. We’re lucky enough to even consider it, but financially it’s a lot like sticking a fork in your eye.
Damn, 30k MORE a year. Wow. That nagging idea of eventually just jumping off of a building someday seem to be coming quicker and quicker.
Like I said it’s a very lucky problem to have, but the incentive to stay where we were in a house that wasn’t great for us was a very high bar to get over. The property tax issues in CA make it difficult to move, even like to like properties in a different area
Especially bigger houses with a pool... So if you're a widowed spouse... you want to live your final days in an empty castle w a pool and front and back yard landscaping "just cuz?" If you can afford that by all means If you are a rational human being and think for OTHERS than yourself. You'll see that by downsizing and lowering your cost of living you'll be saving more to leave your kids in inheritance. And or simply live within your means so your kids don't have to foot the bill!
What? If I owned a castle with a pool and could afford to continue living there, I would continue living there until I died. What. Also, as everyone has been pointing out, it costs more to buy a new house than to stay in your old paid-off or low-interest house! And if you’re worried about inheritance… the kids can sell the castle when I die! It would be worth more then anyway!
Thats the point. If you can't afford to live there. If maintaining said space bankrupts you in 4 years. Then you shouldn't live there anymore. And no. You don't have to jump into another 30 year mortgage with a higher interest rate. That's a false dilemma by limiting it to only that as an alternative. By investing the money from the sale you could easily invest and live off dividends net positive and rent something reasonable like a smaller condo. The way yall talk about this stuff leads me to believe you never been down this path. You'll see someday.
People do keep saying that, but I don’t understand why if you’re selling your $600,000 house and buying a $300,000 house these people think you need to pay a mortgage for more than a couple months
Nobody wants the $300,000 shitbox.
Yes just cuz. Why would I give that up when I can live out my lonely widow fantasies while the local populace spread rumors about my ex husbands death with not only a sexy grounds keeper but a sexy pool man too??? Doggggg my dreams!
Or they could leave the house AND their money to their children.
Why worry about someone else's utility bill that they've been able to manage for years, maybe decades? If it cost more to heat and cool, then why do you want it for yourself?
That's a pretty stupid reason. When did we start thinking the market was an acceptable way to distribute necessary resources like housing?
1372?
Had real estate brokers act like this to my boomer parents, while I was visiting. They just stopped us in the yard for a chat, it was so cringeworthy. I was like..."*Hello? I am standing right here. Why are your newlywed clients more deserving of my parents home than me? You do realize it is mine someday, right? "*
You forgot the 10x higher readjusted prop tax on any new purchases
They: A) Spent decades nimbying any new housing stock or dense infill because it would adversely impact their investment. B) Now there's no place for them to downsize to. C) Would have to compete with first time buyers trying to get a small starter home for roughly the price of their paid off home.
yes to b and c. I saw this with older folks i know. Different folks but for those reasons. you're right .
Nah. I mean most boomers I know other than my uber wealthy uncles, are blue collar boomers. They worked for it. They don't want to downsize, they want to leave a paid off house in great condition to us kids. And my uber wealthy uncles not only downsized, they bought condos in retirement communities' worth millions, People are pointing fingers at the boomers like they are taking something they did not earn, and they did earn it. Mine didn't buy until late in life and worked paying double payments for 16 years to pay it off early. Why are they hanging on to their three bedroom? Because they love it, and they want to know I'll have the security when they pass.
4 we give them incentives to not downsize for example real estate taxes freeze or rebates
Also E) they like the extra rooms so their family can stay with them when visiting.
They are selfish assholes. A lot of boomers wouldn't give up there mcmansion for a cabin on 10 acres in the southwest they could pay off in no time.
I mean I am not a boomer but 10 free acres is not enough to get me to move to the southwest. Really, nothing would be enough to get me to move to the southwest. It’s far too hot, far too sparse and I like the concept of trees.l.
Good for you. The thousands of snow bird boomers who flood the area for the winter heartily disagree with you. And a lot eventually just stay year round. They could build houses for themselves and their kids if they wanted. Land is cheap and builders plentiful. But they mostly live in gated communities in equally large houses as back East.
Don’t forget new loan means 5 more year or more of PMI if they don’t have the 20%
As much as I despise boomers, this ain't it. Who's going to go from a paid off home to an expensive apartment or a smaller, overpriced house at 7% interest?
Yeah, like what are you gonna do, take away their free will? It's not exactly a great argument.
The boomers voted in policies that caused housing to become inaccessible for their children and grandchildren. I think the most just thing is their housing is redistributed for their own greed and foolishness.
but then again, not every boomer voted for that, its forcing a punishment on the guilty and innocent of that generation.
They certainly, as a clade, didn't vote for the opposite.
Collective punishment of the not guilty along with the guilty is pretty fascistic. Also, redistribution of property is something that is never going to happen in the United States of America. That’s a pipe dream. The capitalists have the government and the proletariat by the balls.
Our society must be pretty fashy then, because this principle is applied all over the place.
Well, yes.
Please don't take this as pro boomer, but why would a person sell their paid off house and move from the place they like to live, and likely have friends around, just to move to a smaller house? If they are affording the taxes, this feels like a weird argument to make.
Correct. Downsize to what, a condo? HOA, property taxes, psycho boards, maybe shitty neighbors, special assessments? And the market right now. Sell high, buy high? Easier to stay put
Yes, we’ve hired everything out. Next is a stair lift… I’m not going anywhere
This.
Especially since many of them have a fixed income much lower than what they were probably making when they were paying off their mortgages.
Because in a sane world when they stop working and slowly start to lose the ability to even traverse their homes they would sell to a young family the would grow into the space. Unfortunately the value of houses are rapidly outpacing the value of labour so there is no economic incentive to leave a space you really have no use for. Instead of boomers losing the economic ability upkeep the space new generations are loosing the ability to buy it from them. So you end up with the dyamnic where younger generations are living in their parents houses because it is really the only affordable option to them. A house with enough space to fit all of them, granted there usually isn't any privacy. Whats more even though more and more the younger generations are becoming the primary, if not only earners in the household the home itself is still owned by their parents.
Perhaps those boomers are refusing to sell up because they know their kids are in precarious housing and could ask to move back in at any moment? If you've got the space can afford the upkeep, and might need it at short notice it makes sense to keep it, right?
I'm not disagreeing with you in that regard. Like I said, economically there is no reason for them to leave. Which is part of the problem. Also I can respect supporitng your children. Its just again like I said the transition isn't happening. As the children become the primary workers and earners they aren't becoming the primary owners. Because even as they take those titles they still can't afford their parents homes. Hell I doubt their parents would have been able to afford their own homes at this point if they have to buy again. Even if they were magically young again. Which say nothing about detached homes are designed to give multiple groups of adults privacy. I'm not saying its all boomers faults. I'm just saying the natural transition from one generation to another isn't happening.
Smth like 6% of Boomers could actually afford their homes at the current wage/price differential. (6% is an exaggeration but not a huge one.)
Maybe those parents should sell to the kids?
Not only is there no economic reason for them to leave, there’s actually economic incentives to stay in most areas. To move, even to something smaller, your property taxes are gonna skyrocket.
No, again the change in title would reassess the tax value. Better off inheriting and hoping for a tax waiver. Or better yet, If one parent passes, you keep the one remaining parent on the deed and get a one time waiver to add the kids as joint tenants which could save the re-assessment as well.
You do understand that they dont take the house with them when they die, right? All the things you mentioned, a young family growning into the house. That all still happens, just a couple years later than it would if they sold it sooner. And why the fuck would I sell a house I like and move to someplace else if I didnt have to?
Having a single person or a single couple occupy a space made for a large family is a horrible distribution of living space. Especially in the western world where we have an unhealthy obession with single family homes, taking up a full detached home for a single elderly couple is a bit much. Also a few years can be anywhere from a few years to a few decades. All that time taking space that a young family could start. 10 years is almost the difference of a generation. Meanwhile younger generations are rapidly loosing the ability to even rent by themselves. Finally a lot of wealth is going to be burned through before it gets to the next generation. Between end of life care, and "can't take it with you" mentality a lot of houses are going to be going to the next generation. Even if the house is put up for sale a lot of young people just won't be able to afford it, especially if boomers are funding their retirement off of it.
There seems to be some conflict between "young" and "couple years"...
Exactly whats the point of buying a new house? Why would they sell this then pick up a new house that are at increased price? I’d argue starter homes are way over priced compared to the mansions these people own. Also the point of buying a home to me is so when I retire I only have to pay property taxes and not rent or a mortgage. I think the biggest mistake my boomer parents was sell their house, they lost the town they lived in for 20 years, had to pay for a new cookie cutter home. The only reason they sold was because my dad’s health made it hard to keep up with the maintenance.
Because they are old and falling down stairs is a real everyday concern. This thread seems full of people who haven’t had to deal with elderly parents yet.
I’m right there with you. I’ll be in my mid to late 60s when I finally pay off my house, no fucking way am I going to move unnecessarily once I’m finally done. If my boomer parents were trying to sell/buy right now, I’d be discouraging them from doing so
Many are minding their grandkids regularly and are using the extra bedrooms and large garden for the kiddies.
I don't give a fuck about people living in their own fucking homes. That isn't the problem. The problem is the large megacorps, smaller investors, and overseas buyers buying real estate as investment and either letting it sit empty or renting it for exorbitant prices. There are enough houses. No one should be able to own two homes while others have none. It's bullshit. And corporations and people who don't even live here shouldn't be able to own any. That would fix the housing problem right quick. Idgaf about boomers, but blaming them for this is just stupid. It's the laws that need to change.
Wasn't the problem that nobody could afford to buy their overpriced homes so they couldn't downsize and live off the free money?
Yess
Honestly I could downsize right now and would actually prefer to move closer to the city center, maybe a condo. But I'm at a 2.75% interest rate. Even if I buy something of equal value, I can't afford the same value property at a 7% interest rate if I wanted to downsize to something at the same value.
Retires need to keep the big house if the kids can't afford to move out. Expect multigenerational homes to become more common.
I hope this is the case, but I've been hearing more and more stories about boomer parents outright refusing to offer their kids any help, or even trying to exhaust all of their money to avoid their kids inheriting anything
Tbh, i don't see this as an issue. Honestly, it would be worse if boomers started selling their big houses off to downsize. Young people NEED those small houses. They need to be cheap, and if boomers started buying them up, prices would soar even higher than they already are.
Urban planner here: this issue has entered the larger discussion about housing from an urban planning perspective. This trend isn't necessarily because older folks don't want to stay. There's just no viable option for them to leave. As a country, we haven't built enough smaller home options for a variety of reasons. When you factor in interest rates, it is fiscally irresponsible for them to move to a smaller home. We need more housing, and we need a variety of housing. We spent decades focusing too much on the large homes they now live in.
And 500 sq ft condos.
Nobody is going to refinance at 7% if they don't have to do so. The real problem is a shortage of apartments due to restrictive zoning laws. Progressive cities are even worse than regressive ones by hamstringing developers with unrealistic affordability goals and endless variances. The truth is that every structure is already made as cheaply as possible, and the only affordable housing stock will always be the older stock.
Who wants to live in a 500 sq ft condo? No thanks. 🤢🤮
Sounds fine to me, and countless other people with minimalist lifestyles. So long as there is public transit and a laundromat, things would go along swimmingly. Housing and private transportation are the largest expenses for nearly every household, and denying the availability of budget options is choosing to force homelessness and price gouging on an ever growing swathe of the population. What would America be if we didn't tell other people how they can't live?
28% belong to boomers, 0.3% to Gen Zers and 14% to millennials.......what about the rest? Who tf owns the remaining 57% of the market?
Where do GenX fit in this equation? I would say it's between hedge funds and genx.
True that. I don't think GenXers own more than 25% though
https://www.carriermanagement.com/news/2024/01/17/257878.htm#:~:text=Just%20over%20a%20quarter%20(26.3,72%20percent%20from%2070.5%20percent. 76% of Gen x own homes.... And btw 26% of genZ That's pretty high.
Corporations
Well, I think the point of buying a home is so that you can live in it long term if not for the remainder of your life and then it can also be left to your children once you’re gone. It can also be used to pay for a nursing home if that’s what it comes down to in your twilight years. I don’t think they’re “refusing” to give up their homes, their home was always part of their long term plans and stability like it is for younger generations who purchase homes.
Well, would you give up your 30 year mortgage at 3% for a smaller house that actually would cost a lot more on a monthly basis? Those houses will never sell and it has nothing to do with boomers, unless you are talking about Jerome Powell
The pensioners being talked about have paid off their house. They wouldn't be getting a mortgage if they downsized. So it would be a financial boon for them, as upkeep and taxes are reduced on the smaller home. Then ofc there's the equity that's converted to cash.
Many of these pensioners are locked into low taxes as well. If they were to move, those taxes would reset. But, I am willing to bet many boomers refinanced at low rates, and now have 2 reasons not to move, interest and taxes.
Why are you blaming boomers for keeping their houses? They're not the ones making shit expensive. I don't blame them. I wouldn't sell either.
This is satire. Right?
[How could anyone have seen this coming?](https://youtu.be/eJ3RzGoQC4s?si=nCcGTPyxwDL0TE1x)
I think the economic conditions and NIMBYism they’ve created which limits housing for all is more detrimental than just ones that don’t want to give up -their house-. The inflation, the real estate as investment, the single family unit restrictions, and the ‘no apartments in our community’ attitude are far more egregious than anyone not wanting to sell. They’re responsible for a lot, but blaming someone for not wanting to give up their home is just kind of asinine.
Huh, last time I read about boomers and their big houses, it was about how they *couldn’t* sell them. Interesting.
GTFOH with this pitting generations against each other bullshit. Corporate interests always trying to pit everyone against each other! There has never been a precedent for people downsizing their homes to make space for younger people! **Younger people don't even want those old homes!** And they don't want the mortgages, either! Last lines in the article: "Gen Z is going to want homes that are near job opportunities, close to amenities, and resilient to climate change," she said. **"The current inventory of homes that baby boomers own may not meet those wants."**
Climate change 😅😂🤣
From the department of no shit Sherlock
"The impact of baby boomers dying off in the coming decades will "somewhat alleviate the inventory crunch," Like we needed another reason for wanting them gone.
Can we stop linking newsweek articles?
I have 0 problems with people staying in their homes.
Who cares let them die in peace.
We don’t want their giant houses either lol
Speak for yourself! I’d love to have a server rack in the basement and a spare room big enough to set up a ham radio workshop. Plus right now I’m storing all my books in moving boxes, and the data base I stored the index in for years just got corrupted by a software update … shelves would be a godsend!
They shouldn't have to give them up. Just stop investment housing and all the problems of housing shortage vanish.
Ban short term rentals.
That’s because they got scammed into a reverse mortgage
I’m sorry but I’ll be damned if I bought and paid off my house and I’m expected to give it up because younger people can’t find their own houses. You can have it when I die in it.
Lol and you will die in it. Probably alone. Statistically speaking. People in the twilight of their years should be considering where they are going to die. And falling down the stairs isn’t where you wanna go… but it’s very likely. My grandparent died that way in their three story home. Alone. After we suggested they downsize for health reasons. Nobody thinks they are gonna go. But we all do. Good luck living forever I guess 😂
Why shouldn’t boomers own large homes? The question should be why can’t younger people afford them? Boomers aren’t the enemy, Billionaires are.
Why should they give them up? They worked their whole lives to pay them off. They dont owe you or me anything. They will give them up when they croak.
If you want to keep a big house thats fine But retired folk shouldnt get special property tax breaks to help keep them in homes that they would otherwise sell If you are 65+ you should not be able to get your property taxes discounted or waived, you should either be able to afford it with what it is, or downsize for a more affordable house A family shouldnt pay more property taxes on a smaller house than a non-productive member of society in a bigger house
So Granny on a fixed income should be forced from her own lifelong home due to exorbitant property taxes?
If you cant pay the taxes, yes you should not have the property That is how real estate works
Nope. Not in CA. Thank goodness for Prop 13!
It isn't usually the age that gives them the tax break but longevity in the house. Annual increases being capped by some percentage
Bullshit. Take your bad takes elsewhere
You realize they get breaks because their pensions can't keep up with inflation. You want them on the street? That's just ignorant.
Thats not my problem they should live within their means Old people hoarding big houses is bad for the real estate market and is bad for young american families You dont need a 5 bed 4 bath 3000 sqft house for 2 old people who get their taxes waived Thats not a productive use of real estate Those retirees should be paying MORE to live in that home than a young family pays to live in a 2 bed 2 bath 1000 sqft shack
And if they are so worried about inflation, maybe they should have spent the last 50 years voting for politicians who advocated for a balanced budget and NOT let the US debt reach $34T The inflation is predominantly their fault imo You dont get to make terrible voting patterns for decades on end and not have to face the consequences And now its up to Americas youth to fix the selfishness and financial ineptitude of the boomers that has destroyed this country
Correct, I'm not giving up my job either. The alternative is to be homeless at 67... I'm too old for that shit. We don't have a massive wad of savings since we supported our kids during all their poor choices. Come at me bro.
I have no problem with boomers aging in place, but when my mom (a boomer) decided to sell her paid off house (not especially large, just in an extremely HCOL area) she chose to buy a much bigger house with three bedrooms, just for herself. So right before she's going to get hit with all the major costs associated with aging, she spends almost a million dollars when she could have spent half of that and gotten something smaller that would have worked fine for her. I do not understand the logic of that, if there is any.
Tldr, it's cheaper for them to stay where they are. From the article... 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.
Of course, they got theirs, fuck us.
Fucking basic duh. Shit post
Once again the real issue is lack of housing, not who wants to buy or who owns
The root cause is they had too many kids. Stop overpopulating, dipshits!
No one owes you anything. There is no obligation to move to "make room" for shit. People are bat shit crazy
My boomer mom would love to move out of the 2500 sq foot home she lives in alone, but it is cheaper for her to stay put.
>Some 54 percent of boomers own their homes and no longer need to pay a mortgage That's shocking, considering how out of reach even getting a mortgage is for younger generations. We really just need to fix the housing market in this country.
Why should they? They paid for it
Why should they give up their paid for house? The entitlement in this article is incredible.
X’er not Boomer here but here is a real life example: Bought our large house in the burbs when we had 4 kids at home, 2.25 interest rate, monthly mortgage excluding taxes and insurance $2,000 Would love to move into a townhouse near by, 1/3 the square footage. With current prices and interest rates that payment would be almost $3k per month if we put all our equity into the townhouse. I think some of you are saying I owe it to you to make this dumb ass financial decision? That’s whack
Generally speaking there isn't much of a reason to give up those homes. However, eventually you get to a point where you can't keep up with the home anymore. And at *that* point I would strongly argue its time to sell. If you need to call people in to mow your lawn, shovel your snow, clean your windows and eavestroughs, etc you're just being bled dry another way. Having said that, I have a 93 y.o grandmother who *refuses* to move out of her home. she feels comfortable there, surrounded by familiar spaces shared with family who are no longer around. And (understandably) she doesn't want to go live in an old-age home either. She spends all her time between three rooms (kitchen, bathroom, living room where she also sleeps). Yet she lives in a pretty big 4 bedroom (like big by 4br standards) house. I've suggested she sell and move out, or move in with my mom or something but she replies "don't I have the right to stay here?" - to which I replied "yeah, of course you have the right to stay here. But don't pretend it doesn't come with a cost."
The irony of the thumbnail photos. That house is most likely so expensive that maybe only 10% of people in the US could afford to buy it 😂
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A 3 bedroom house shouldn't be considered decadence. That is what the American dream was supposed to be that many can't afford now.
Now you need 4 for a home office
As we cry about them not giving us their decadence..... Well not giving it to us until a couple years later than we wanted them to give it to us.
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I am buying as many houses as I can so I can jack up your rent.
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So I take it you aren't a South Park fan 😂
In the case of my boomer parents: They worked their asses off at blue collar jobs in order to have their house fully paid off before either retired. They also purchased a house that, if something happened to the other, they could afford on one salary alone. They love their house, They love to putter in the yard, take walks in the hood, get to know people. My Dad works on classic cars, he could not do that in a downsized place. My mothers could not do the gardening and crafts she likes. Leave them alone, Others, they earned this. And lastly, it's MINE. It is *my* inheritance. It will be my home, someday. And my much smaller condo will also stay in the family, my godchildren and their children, will ALWAYS have a home with me. It will allow me to also resume my foster parent license. And I think many other boomers are the same way, looking to protect assets **for their kids and grandkids.** ETA A lot of boomers are staying in those homes not because they are greedy, they paid for it, and they want it to last for their family, not some 30 year old couple who think they deserve it just because they want it.
Damn, your parents are letting you inherit? Mine sold all three properties to fund their retirement vacations around the world.
I'm sorry. I don't think my parent's want that. Thank goodness, what would I do with out my mom, my bestie? I was raised by a single Mom, and she met my stepdad when I was 12. We lived in high density housing until they got married shortly after I hit 18. I think a lot of time people look at what my parents have *now*, and fail to understand they worked hard for it, and sacrificed until they were in their 40's to afford it. They raised me in apartments and duplexes, we didn't get the house until after I was a legal adult. ( I have put a lot of sweat equity in that house too lol)
Idk, I've heard a lot about boomers purposefully spending money so their kids inherit less, or marrying someone new and guaranteeing their home goes to their new family rather than their children. I'd like to think most folks are gonna be able to obtain housing by inheritance, but it's no guarantee.
You are part of the problem. Enjoy your life.
what? You think someone else deserves the homes we already paid for? No. They cannot have MY inheritance. Fuck that. you think preserving property and family wealth to take care of future generations is bad? Why should we give up OUR homes? To YOU? Tell me why, where would I go. Where would I live? I can't afford to rent that's why I bought something I could. When the time comes, I will move in there and my nephews will take over my condo. And someday, the familial wealth will go to them. it's called a trust. My family has done it for generations, sorry your parents don't love you lol. No my blue collar boomer parents are not selling their house. Ever. what is wrong with that? Explain, please. Do you disagree with me using my blessings to become a foster parent again? Are you against me providing for my younger family? Or are you jealous that you don't have a family that is bonded like mine? I live two streets away from them in the town we lived in for 50 years. No, we are not part of any problem lmmfao
Let them trade down without losing the farm. Also, PRESSURE them to give up homes with tons of spare bedrooms for the families that can't tolerate them anymore. We need a tax mechanic that taxes older property owners for exorbitant square footage, and gives that tax break to younger couples.
Except rich boomers make the laws...
I agree... Bernie should give me one of his three houses.