Shoveler, how many of those boomers will consume their house in retirement? For today’s generation of home buyers to replicate what happened, those $800K homes in Irvine will need to be ten million in 30 years. Maybe Cali will keep growing that way.
Personally, I think the boomers have simply benefited by the pig in python effect coupled with a happy timing of a real estate bubble currently being redriven by historically low interest rates. The next 30 years will be interesting as the boomers become net sellers.
There’s a reason most wealth managers look at assets outside of a primary residence. It’s in what you cited, they won’t sell, or more maybe, can’t sell. Can’t sell without massively changing their life, relocating usually out of the area. In effect, their house is a sunk cost.[/quote]
It’s a small sample to be sure, but all my family has stayed in their SoCal homes until they passed.
That’s what prop-13 will do for you LOL.
The few friends I grew up with (who stayed) are planning to do the same and pass their home to their kids (who will likely sell in most cases, so it most likely won’t be these boomers who sell but their heirs).
Not a sunk cost I think, just an investment you live in.
I have to add, the current low inflation we have been living since 1990 or so, is very unusual (strange even), we have China to thank for that I think.
