I'd assume this is Boomers needing to tap into the equity of their real estate than them dying off, whether it's to retire in a low cost-of-living state or inflation nuking their retirement. We still have Silent Gen liches like Nancy Pelosi still clinging to life.
About 25 years ago I had read a financial report that said that 1/2 of boomers owned more than one house. At that time, boomers were 1/3rd the population. So, yeah, I'd say that has a big part of it
I have an empty boomer-owned house next to me. The woman who owns it thinks it's an investment. Taxes here aren't low, it costs ~6K a year in taxes at the least, it's been empty 10+ years. I don't think the owner comprehends that after such a long time unoccupied, the house is worth much less; these people think that a house is always worth more, no matter what.
Meanwhile, if she would have sold and put that cash into a index fund, it would be worth more now, even with the capital-gains tax factored-in. Even if the money sat in a savings account, adding in 6K per year instead of paying tax, would be a win.
Yeah, I'm a boomer and I've met a lot of moron boomers. I've met quite a few smart and honorable boomers as well. Every generation has the same issues.
Unfortunately, the carrying cost of real estate is so much now, unless there some productive use to offset the annual taxes, it's not a good way to hold wealth.
I would also like to add, that when the oldest boomers hit 70-1/2 years old, they were required to start taking minimum distribution from retirement accounts and we saw the stock market fall hard. Financial institutions knew this was coming and sold ahead of time and the boomers started selling into a falling market to compound the problem. It was definitely a setup to catch lazy, ignorant boomers and make them pay for their lack of understanding
I wonder how much of this is being fueled by boomers starting to die off.
I'd assume this is Boomers needing to tap into the equity of their real estate than them dying off, whether it's to retire in a low cost-of-living state or inflation nuking their retirement. We still have Silent Gen liches like Nancy Pelosi still clinging to life.
About 25 years ago I had read a financial report that said that 1/2 of boomers owned more than one house. At that time, boomers were 1/3rd the population. So, yeah, I'd say that has a big part of it
I have an empty boomer-owned house next to me. The woman who owns it thinks it's an investment. Taxes here aren't low, it costs ~6K a year in taxes at the least, it's been empty 10+ years. I don't think the owner comprehends that after such a long time unoccupied, the house is worth much less; these people think that a house is always worth more, no matter what.
Meanwhile, if she would have sold and put that cash into a index fund, it would be worth more now, even with the capital-gains tax factored-in. Even if the money sat in a savings account, adding in 6K per year instead of paying tax, would be a win.
Yeah, I'm a boomer and I've met a lot of moron boomers. I've met quite a few smart and honorable boomers as well. Every generation has the same issues.
Unfortunately, the carrying cost of real estate is so much now, unless there some productive use to offset the annual taxes, it's not a good way to hold wealth.
I would also like to add, that when the oldest boomers hit 70-1/2 years old, they were required to start taking minimum distribution from retirement accounts and we saw the stock market fall hard. Financial institutions knew this was coming and sold ahead of time and the boomers started selling into a falling market to compound the problem. It was definitely a setup to catch lazy, ignorant boomers and make them pay for their lack of understanding