Quote:
Originally Posted by Slava
I feel like a lot of that is anecdotal. Yeah, there are people who are planning on selling their homes eventually and it's a lot of money tied up in real estate across the economy for sure. At the same time though, people will buy them as they move through life and want that kind of lifestyle.
I'm sure that 8-9 years ago on this board there were posts about how millenials were not interested in larger vehicles. Then the millenials hit the ages where they began having kids and kind of settling down. When that happens, a Smartcar sounds great, until you try to fit junior and his buddy and their gear to head to soccer or hockey or whatever. So, at about that time we saw SUV purchases rise along with that rise in household formations.
I have no prediction on the timing of when that happens, but I don't think that the housing market will be a pure calamity as boomers look to sell and downsize. The reality is that when there is a lot of money tied up in these places, that they're generally nice places with amenities that people want...eventually.
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I think the problem is, on average, millenials just simply have less income relative to living costs than boomers did. Whether is due to avocado toast or not I won't speculate, but I feel like i know a lot of people who are still renting in their late 30s/early 40s, and a notable chunk of those who own a home got seed money from their parents. Purely anecdotal of course.