Big baby boomer sell off and real estate

Big baby boomer sell off and real estate

Bloomington, MN · Member since 2009 · 107 posts · 30 votes
I'd be curious of people's opinions of the affect on the real estate market do to the $30 trillion transfer of wealth about to happen. Over the next 20+ years we have baby boomers retiring and as they are now starting to reach 70 1/2 they are forced to pull some withdrawals out of their retirements. This would be money leaving the stock market which would cause many stocks selling which through supply and demand can cause stock prices to go down. Many in the financial world make money of managing the money and they'd have less in fees which may cause them to sell. Prices going down could cause people to panic some and start selling. Baby boomers are aging so they are going to start putting homes on the market in supply plus go to assisted and nursing homes. The younger generation is often renting and not choosing to buy and reports say they don't have money saved. The housing and college loan bubble ad to this huge demographic shift. If lending tightens it could have a compounding effect. A lot of these shifts and bubbles are possibly in the trillions and just want to know what people's thoughts are as far as how big this could happen? I've been in the biz since 2002 and pretty much predicted it all easily 1 year before the last crash, love to hear others thoughts on what we may see.
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Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
9y

As long as the population is growing, there will always be a demand for houses. 

Millennials overtake Baby Boomers as America’s largest generation

Especially now when the market supply is limited. In addition, the number of foreigners buying houses here in US are at an all time high. 

Foreigners snap up record number of US homes

In regards to younger generations renting more, it could be more of a lifestyle, though the amount of student loans will be a huge issue.

In my opinion, the $4.5 trillion balance sheet on the fed will be more disruptive. That may drive interest rates up, and cause the stock market to go down. No more QE..... until the next crash!  

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  • Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
    9y

    As long as the population is growing, there will always be a demand for houses. 

    Millennials overtake Baby Boomers as America’s largest generation

    Especially now when the market supply is limited. In addition, the number of foreigners buying houses here in US are at an all time high. 

    Foreigners snap up record number of US homes

    In regards to younger generations renting more, it could be more of a lifestyle, though the amount of student loans will be a huge issue.

    In my opinion, the $4.5 trillion balance sheet on the fed will be more disruptive. That may drive interest rates up, and cause the stock market to go down. No more QE..... until the next crash!  

  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    9y
    Ron Orr There is no historical correlation between new retirees and stock market prices.
  • Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    9y

    I can't predict any of that; so, I invest in properties and in locations that are more predictable and less susceptible to market forces.  Forcing appreciation is a must for me too; so, that leaves room for mistakes and uncontrollable things.

    The boomer's are going to spend or invest that capital somewhere...it does not go away (aside from the tax windfall to the IRS).

    There are so many different market forces.

  • Bloomington, MN · Member since 2009 · 107 posts · 30 votes
    9y

    Well articles say millenials have $1000 saved. College debt. Tough to find employment , live with parents and don't want to buy houses like the other generations.

  • Member since 2016 · 13k+ posts · 12k+ votes
    9y

    Many if not most of the younger generation view their inheritance as their retirement plan.

    Based on the vast percentage of them having poor money management skills and preferring the luxury life style you can expect lavish spending when they do inherit until they go broke. Passing of the boomers will create a huge upsurge in the economy when all their hard earned savings are squandered by their children.

  • Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    The baby boomer generation has already been retiring and will continue to retire throughout the next 20 years, so this will be a slow process - not a 1-2 year thing. At the same time the millennial generation will be buying houses slowly as they start to have kids. Right now people are very hard on Millennials, saying they're lazy, spoiled and the like (see Thomas S. post above). This has happened throughout history. My parents talk about how the baby boomer generation going to be a huge failed generation, after all, they where the pot smoker/hippy generation and now they are the respected generation, who - by the way - raised the Millennial generation.  

    Could we see some issues? Maybe, but I don't see it as being a major reason for the next stock and/or real estate crash. 

  • Member since 2016 · 13k+ posts · 12k+ votes
    9y

    My children are Millennials, all my relatives kids are millennials, all our children have millennial friends. We have a very good handle on the "majority" in regards to whether they are lazy, spoiled etc. and honestly I place the full blame on the Boomers generation for creating the situation. 

    The very number of Boomers allowing their 20 something children to live in their basement to "help them out" is only enabling them to be lazy and spoiled. Many have grown up with a defeatist attitude instilled in them by us.

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