The California Association of REALTORS makes a compelling case that boomers still matter.
The main takeaways from CAR’s recent survey:
- boomers own most of the homes, and
- you’ll pry the house keys from their cold dead fingers
Yep, boomers own 34 percent of homes here in California, and CAR says that percentage “continues to grow!”, the exclamation point indicating surprise that boomers aren’t giving up on homeownership and moving to a nice retirement community in a low-cost-of-living state with 365 days of sunshine annually. And given California’s housing shortage, why can’t boomers just be reasonable and hand off homeownership to the X-ers and millennials?
Aside from a long history of doing exactly what they’ve been told not to do, boomers have these compelling reasons to not get with the program:
- long-time ownership means boomers face a hefty capital gains hit if they sell
- Prop 13 means they pay low low property tax
- they like their homes–they’re living the dream
- they like their kids, too, maybe enough to eventually leave them the house
- 7 in 10 homeowners 55+ haven’t moved since millennials were in preschool, which means they’ve forgotten how to pack
- almost half of boomer homeowners “don’t plan to move at all”, although life has a way of changing firm plans
- and as boomers retire “it becomes harder for them to think about new visions of homes”, even if those visions include a hot game of shuffleboard
Besides, shuffleboard has always been more of a Silent Generation thing.
Seven reasons inventory may be tight for years to come, and seven reasons why all the speculation about no one wanting boomers’ homes may be moot.
copyright © John Fyten 2017