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.
Dave:
The housing market dynamics that we’ve relied on for generations are changing the days when you could buy a home, live in it for 30 years and then retire off. The appreciation might be coming to a close, but just because the Boomer real estate playbook is dead doesn’t mean you can’t use real estate to your long-term financial advantage. And today we’re going to talk about how, Hey everyone, I’m Dave head of Real Estate Investing here at BiggerPockets, and today on the show we are talking with business insider reporter James Rodriguez about a recent article he wrote called The Millennial Home Buying Predicament. In this article, James…