Tax policy in CA certainly encourages inherited properties to be kept within the family either via heirs moving into the property or as a rental.
I’m not entirely convinced that in 10 to 20 years that we could see significant owner user communities turn into mostly renter communities for a couple of reasons.
1) I just don’t think the market for dated 3/2 smaller properties at @ $2500+/mo is really that deep.
2) I think some significantly portion of properties will get the equity striped out via reverse mortgage or some other means.
3) I think this next generation that inherits these properties may want the instant gratification of selling rather than land-lording even though it might be in their long term interest to do so.
The last point is that there is a significant number of likely dated properties that could potentially hit the market over the next 10-20 years. Might be a flippers dream come true or it might just mean appreciation going forward in housing is much more limited than people are currently considering.
