How can prices be expected to go up when younger Americans already can't afford homes, as ownership rates have been slipping substantially?
2011 Sep 2, 9:32am 20,391 views 57 comments
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uffthefluff
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2011 Sep 2, 10:10am
uffthefluff
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2011 Sep 2, 10:10am
Huh, did you mean to say that home prices would go up if Americans were - unwilling - to accept an increase in people living under the same roof? If more people live in each house then demand will be lower, thereby decreasing prices. Furthermore, you didn't address the rather striking decrease in home ownership among those Americans who are younger than 55.
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http://www.calculatedriskblog.com/2011/08/lawler-census-2010-homeownership-rates.html
The only other explanation is that younger Americans don't want to buy homes, but either way there's no good mechanism to transfer housing from aging boomers to younger generations without wide-scale price declines. The long term trend in real estate prices that we have seen for the last 50 years - of a net return greater than inflation - seems unlikely to continue given these demographic trends.
#housing