[MCN] Wall St Journal: Boomers inevitably die. Their 21 million homes will boost the supply:

[Lance Olsen]

The Wall Street Journal  Nov 22, 2019
OK Boomer. Who’s Going to Buy Your 21 Million Homes?
By Laura Kusisto  <http://online.wsj.com/home-page>
https://www.wsj.com/articles/ok-boomer-whos-going-to-buy-your-21-million-homes-11574485201 <https://www.wsj.com/articles/ok-boomer-whos-going-to-buy-your-21-million-homes-11574485201>

Excerpt : More than a third of Sun City’s homes are expected to turn over by 2027 as seniors die, move in with their children or migrate to assisted living facilities, according to Zillow. Nearly two thirds of the homes will turn over by 2037 <https://www.zillow.com/research/?p=24933&mod=article_inline>.

The big question looming in this neighborhood — and dozens of others like it in the Southeast <https://www.foxnews.com/category/us/us-regions/southeast> and Rust Belt <https://www.foxnews.com/category/us/us-regions/midwest> — is what happens to everything from home prices to the local economy when so many homes post ‘For Sale’ signs around the same time?

The U.S. is at the beginning of a tidal wave of homes hitting the market on the scale of the housing bubble in the mid-2000s. This time it won’t be driven by overbuilding, easy credit or irrational exuberance, but by an inevitable fact of life: the passing of the baby boomer generation.

One in eight owner-occupied homes in the U.S., or roughly nine million residences, are set to hit the market from 2017 through 2027 as the baby boomers start to die in larger numbers, according to an analysis by Issi Romem conducted while he was a senior director of housing and urban economics at Zillow. That is up from roughly 7 million homes in the prior decade.

By 2037, one quarter of the U.S. for-sale housing stock, or roughly 21 million homes will be vacated by seniors. That is more than twice the number of new properties built during a 10-year period that spanned the last housing bubble.

\————————————
“Booms have consequences.”

Grant, James. Money of the Mind : Borrowing and Lending in America from the Civil War to Michael Milken. Farrar Straus Giroux. 1992

\——————---------------------------------------------------------------------——
“It is no coincidence that the deepest and most protracted recessions in recent decades have taken hold in countries that experienced booms …” 

The Economist, July, 2001 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://bigskynet.org/pipermail/missoula-community-news_bigskynet.org/attachments/20191123/f039743d/attachment.html>