One way or another somebody is going to have less money spend. Whether it’s the pensioners that take a haircut or the tax payers are forced to pay more in taxes. In general it’s another headwind for continued price appreciation in real estate, but it might not be the biggest or even that significant.
I suppose it could trigger some movement in people. Pensioners facing a big haircut might move to a lower cost of living state. Huge tax increases might encourage businesses and individuals to leave the state/city.
I don’t think the pension crisis is going to do anything good for the economy. Essentially it’s a big debt and economic impact of that debt doesn’t clear until the debt is paid off or you default on it.
