[quote=carlsbadworker]CAR, whether baby boomers will be looking at liquidating their houses does not matter. They are switching from one form of housing (owner) to another form of housing (renter). It doesn’t change the overall demand for shelter. Real estate investors as a supply of these shelters (again either in the form of landlord or seller) would benefit if the demand grows.
By default, the demand will grow due to new household formation. Renter affordability will slow the household formation but I don’t see it will reverse the trend.[/quote]
I agree with this, except for the part about “baby boomers” selling to become “renters” after living in their “own” homes for nearly their entire lives.
Ain’t going to happen.
They may or may not stay in the same county or state but the majority of them (who DON’T have “artificially-low” property taxes under Prop 13) will likely sell and downsize.
Boomers value home-ownership. They look at buying a primary residence as shelter … NOT as much a “lifestyle” purchase (as younger generations do).
I don’t agree that the majority of boomers won’t be able to buy a (smaller) replacement home with the proceeds of their (often high-maintenance) former “family home” which is no longer needed.
