Tuesday, Jan 22, 2008
Will Baby Boomers add to the Housing Bust?
Economist: Baby boom and bust
For three decades baby-boomers have helped push prices up: they settled down, then bought bigger houses and second homes. But as the first of them celebrate their 65th birthdays in 2011, this will change. The old sell more homes than they buy, and the ratio of old to working-age people is expected to grow by 67% over the next two decades.
Will the younger generation be able to buy all the homes on the market?
Posted by enuii @ 07:11 PM (470 views) Add Comment
5 Comments
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1. magnifico said...
Will the younger generation be able to buy all the homes on the market?
more to the point how will the younger generation feel about looking after the generation that through greed hindered their aspirations?
2. uncle chris said...
There is a serious need for a re-distibution of wealth from the baby-boomers to younger generations. It seems like they have had it all and will receive decent pensions at a relatively young age, whilst those in the 20's and 30's start out in debt (graduates), have little opportunity to buy a decent home (let alone a second home), will have to work until 68 paying the health and pension tax burdens of the baby-boomers, and even then will receive lower (non final salary scheme) pensions in gratitude. It makes you wonder why they bother to work so hard when there are so few prospects and don't just head off to occupy a squat with 'swampy' and friends.
3. drewster said...
In Europe, the baby boom is going to cause real demographic problems over the next couple of decades. Many of those boomers have pensions invested in the stockmarket; and as they retire, they will cash in their pensions; making the stockmarket fall in dribs and drabs over the next couple of decades. It will look just like Japan's "lost decade" - a 10-15 year period when shares and houses slowly declined in value - everyone will be scratching their heads looking for an underlying cause, even though the demographics are staring right at them.
America is somewhat protected against this because of higher immigration; but they too will feel the slow pain of the baby boomers' retirement.
4. Baudot said...
America needs to learn from NuLabour. All that's needed is total abandonment of immigration controls. Voila, static supply, increased demand, up go the house prices.
5. J. Wilson said...
women started hitting their 60th birthday- their retirement age in 2006! 1945 + 61 = 2006