Reply to The median Boomer has a housing cost of $612. That includes taxes and insurance.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I don't understand this. Are boomers grandfathered in to low taxes and insurance or something? How on earth could they pay so much lower than the rest of us with similar houses?
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[b]When it comes to property taxes, many states (eg, California) and local jurisdictions (eg, DC and thousands of other cities & counties) cap property taxes from appreciating for long time home owners. So if you own your home for a long time, you will pay only a fraction in property taxes of what newer home owners will pay. This is especially true in areas that have seen rapid price appreciation in recent years. 
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It’s massively market-distorting and keeps older residents in their big homes because they don’t want to pay more in taxes. California tried to alleviate this by allowing older residents to sell their home and apply the original discounted property tax rate to a new property….its had mixed results. But even in California, you have houses in Malibu that are worth $10m but they pay the original property tax on the $300K value when they purchased the property in 1980. So maybe they pay $10K per year in property taxes while their next door neighbor pays $100K/year.

There’s variations of these tax distortions all over the US. Now apply this to vacation homes and investment properties, plus zoning restrictions….it puts younger buyers at a massive disadvantage. [/quote]

This is insane! So the rest of us are subsidizing boomers?![/quote]

Wait until you hear that in CA if they pass the home to their child, the child keeps the property taxes locked in at the parents’ previous rate. The reason is so the adult child who inherits won’t lose the home due to extreme increases in property values. [/quote]

[b]Only if they live in it.[/b] It used to be that the inheriting adult child could use it as an investment property and retain the property tax basis. The taxes still increase every year, it is not "frozen". [/quote]
That is good policy. Tax breaks shouldn’t be given to investment properties. [/quote]

I agree. We need to allocate more real estate for primary homeowners. [/quote]
And dramatically increase taxes on second or investment homes.[/quote]

So, increase rents?  [/quote]
Nope. Rent control.[/quote]

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