Is it true that baby boomers will lead to rising house prices in the United States?

In fact, housing prices in the United States are not low. Many experts have analyzed the reasons and found that the baby boom will actually lead to an increase in house prices. What's going on here? This is something that many immigrants are interested in. Let's take a look at it with the overseas immigration network! The following is the relevant information I have compiled for your reference.

The baby boom will lead to rising house prices in the United States.

Svenja Gudell, chief economist of Zillow, pointed out in an interview with the American Consumer News and Business Channel: "The traditional' empty nesters' changed their big houses into small ones, and this did not happen." The research data released by this real estate data company shows that the inventory of houses for sale is at the lowest level in four years.

Ghoder said that the reason why there are so few houses on the market is that more and more "baby boomers" choose to stay in their "sweet home" instead of changing to a small house. "Baby boomers must have a house to live in," Ghoder said. "But it is difficult for them to change to a small house and find a suitable choice. At the same time, people find it more and more difficult to live in their own houses. The normal' buy another set' market was destroyed. "

Therefore, baby boomers can't find a smaller and cheaper house than the one they live in. "For them, there is no temptation to choose to move," Ghoder explained. "So for many people, selling a house is meaningless."

In Omaha, Nebraska, Bill and Page, who are over 60? Swanson said that if they can find an affordable single-family house for the elderly nearby, they might consider moving out. However, like many peers, they like to live in the old place and take care of the garden full of green peppers, kale and tomatoes. "I have many reasons to stay here," Bill pointed out. "We like walking in the yard."

A conflict between two generations

According to American official statistics, there were 83 million "millennials" born from 1982 to 2000. Meanwhile, there are 75.4 million baby boomers born between 1946 and 1964. Speaking of houses, two generations have a spark of collision.

"Millennials have just entered the housing market," Ghoder said in an interview. "This generation has more people than the baby boomers, and they need more houses. But at present, the housing inventory in the United States is at the level of' 1994', and the population of this country is 63 million more than1994. Because of this, we must build more houses in order to accommodate those redundant people. "

According to the data released by Trulia, a real estate website, people aged 55 and above account for 53% of owner-occupied houses in the United States, which is the largest share since the US government 1990 began to collect this data. Ten years ago, the proportion was 43%. At the same time, people between the ages of 18 -34 only account for 1 1% of American owner-occupied houses. When the "baby boomer" generation 18 -34 years old, the share of self-owned housing in the United States was close to 22%.

If the market demand for affordable housing is so high, why don't builders build it?

"I think many builders will tell you that the cost of labor, raw materials and supervision is too high now, and building a starting house is a loss-making business," Ghoder said. "For profit, they are more willing to build houses that are too expensive for buyers who have just entered the housing market."

Recent data show that high-end properties under construction and for sale are on the rise. Last week, data released by the National Association of Realtors showed that the sales of houses with prices below $250,000 declined due to the decrease in supply. At the same time, the sales of houses with a price of $500,000 and above showed a "double-digit" growth.

Ghoder pointed out that the tight housing market is getting more and more tense, which makes potential sellers leave the market to wait and see. She explained that many homeowners who want to change their small houses are now reluctant to sell their houses and "become buyers who join the housing competition." "Now the seller has the upper hand, and you obviously don't want to be a buyer at this time."