The housing market could do something it’s never done before—permanently reverse. For as long as home prices have been recorded, they’ve always increased over time. But, with one of the largest generations, the Baby Boomers, aging out, and household formation shrinking as birth rates decline, we could face a new problem—insufficient demand.
This is a huge problem for Millennials and the Gen Z generation since buying a house, the primary asset that makes up the majority of many Americans’ net worth, may not be the same wise financial decision as it was before. James Rodriguez joins us on the show to break down his recent article, The millennial homebuying predicament, and why buying a home may get easier for the younger generations, but it could come with less long-term payoff.
For years, economists speculated that a “silver tsunami” would flood the housing market with inventory. What actually ensued, however, was more of a “silver glacier,” since we’re still millions of housing units short. But once these boomer-owned homes hit the market, will prices grow, stall, or decline? What happens to home prices if the population stagnates or reverses? Does buying a home become a riskier decision? James is on to help us answer these questions and share which homes could be the safest bet for long-term demand.
Henry:
Guess what folks? You can still buy real estate today and build an investment portfolio that cash flows monthly and build wealth long term. Yes, even with the current interest rates and home prices. Today we’re speaking with an investor who bought one single family home in 2021, then bought one more in 2022, and then he added a few more small multifamily properties over the last two years. It’s not a complicated strategy, but it can have a huge effect on your financial future. Today, he’s left his job to focus full-time on investing. What’s going on everybody? I’m Henry Washington and I’m guest hosting the BiggerPockets podcast…