Per the above post, it’s interesting how younger generations might think BB’s have had to choose between having a house or having a life, when we, and most people we know–other airline pilots, real estate investors, film executives–all of whom happen to be BB’s–have found it is definitely possible to have it all. Apparently misperceptions abound.[/quote]
This is probably because the cost of required spending like transportation, healthcare, education, food, are all up a ton from before…
When we were young, college and housing in “decent”, non exclusive areas was pretty affordable relative to most incomes I think and college and healthcare was DEFINITELY more affordable compared to now. Even state tuition is very expensive now and we used to pay well over 1k / month for healthcare when 20-30 years ago, it was free for the worker and the family at many jobs.
I don’t think there will be a huge crash though since the whole world is more global now so even if many long time people can’t buy homes here, you have pretty much everyone capable from buying from Asia, Europe, India, Mexico, you name it wanting to diversify their assets out of their own countries and put it in US real estate. In a lot of these other countries, housing is even worst for what you get so there is very limited shortage of buyers compared to supply IMO. It’s a global world/economy now and the US is still one of the safest places to “park” assets from probably China, Brazil, Russia, etc…
Families who own a lot of properties are also probably wealthy so there is limited/no need, rush to sell anything. I know my parents and in-laws all have a fair amount of real estate so there isn’t a cash crunch…
For the “general/typical” American, yeah, it looks bad. But they never had the assets or homes to begin with as mentioned in many retirement/assets owned surveys.
Since these people who own the assets aren’t financially strapped, they will just sell when it comes back. Sorta like if you look at high end collectibles/art, etc…the prices seems to never drop or go down. Those buyers can just wait it out (not counting the crazed 2005 housing bubble of course since that was more of the general no-cash down flipper).
