Reply to Will houses ever become affordable again?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Boomers are responsible for most of the home purchases since COVID. They are the ones with the cash, they are a big generation. Some are downsizing. But many of them are just adding to their RE portfolio without shedding properties - adding a vacation home, building their new construction "dream home," or simply up-sizing to something nicer. They also are severely tax adverse and don't want to sell if it incurs a big tax bill.

In short, lots of housing is effectively locked up by high rates, rich Boomers who loathe taxes, or professional investors crowding out owner-occupants.

The only way to "unlock" housing is through policy change or a major recession. [/quote]

This is my parents. They own multiple homes. There's one they really should sell but they won't because they don't want to pay taxes on the gains, even though those taxes would not be particularly large relative to the sale or their worth. They just hate the idea.

Another factor in their thinking is that for their generation, real estate has been THE way to get wealthy. My parents didn't go to college, they don't own stock, etc but property values have absolutely skyrocketed during their lifetime. It's difficult for them to let go of what they see as a source of wealth and security. I won't see that kind of gain and so my attitude toward real estate is different. [/quote]

I think of that Gerald O’Hara quote, and sympathize: “Land is the only thing in the world worth working for, worth fighting for, worth dying for—because it's the only thing that lasts.”[/quote]

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