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The average age of U.S. homebuyers jumps to 56

cnbc.com

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Re: The average age of U.S. homebuyers jumps to 56

#11

Post by iknowstuff »

arthurcolle wrote: post #9
surfpel wrote: post #7

Well that’s what happens when you frame housing as an investment. If it didn’t outpace the market and the consumer inflation rate, it wouldn’t be a good investment. So by definition it must become unaffordable for the masses. No great way out of this mess.

Mortality fixes generational issues

Are you aware of the vast disparity of wealth among American families? On the order of 100k for white families, 10k for black families. Wealth being passed down family trees ensures immigrants and people who are worse off now will remain priced out.

https://www.brookings.edu/articles/black-wealth-is-increasin...

Re: The average age of U.S. homebuyers jumps to 56

#12

Post by paulddraper »

surfpel wrote: post #7

Well that’s what happens when you frame housing as an investment. If it didn’t outpace the market and the consumer inflation rate, it wouldn’t be a good investment. So by definition it must become unaffordable for the masses. No great way out of this mess.

"I will keep housing prices high" is a popular campaign promise.

Re: The average age of U.S. homebuyers jumps to 56

#13

Post by paulddraper »

iknowstuff wrote: post #11
arthurcolle wrote: post #9

Earlier quoted context omitted.

Mortality fixes generational issues

Are you aware of the vast disparity of wealth among American families? On the order of 100k for white families, 10k for black families. Wealth being passed down family trees ensures immigrants and people who are worse off now will remain priced out. https://www.brookings.edu/articles/black-wealth-is-increasin...

Inheritance is tough. Death tax takes a good chunk.

Re: The average age of U.S. homebuyers jumps to 56

#15

Post by pempem »

gkanai wrote: post #8
whatever1 wrote: post #6

This is not a U.S only or even a western issue. UK, EU, China, India etc all suffer from crazy real estate prices. I think the whole world is due for a big societal revamp. The old generation has concentrated too much asset wealth for the productive generation to stay productive.

Not Japan, fwiw. Japan has been very reasonable for real estate for decades. We're now seeing inflation in major metro areas but outside of that, it's very reasonable.

It's only somewhat worth it?

Japan has reasonable real estate and yet around 10% is in Tokyo proper, nearly 30% in the greater metropolis. Less than half own their homes.

This study: https://www.sciencedirect.com/science/article/pii/S026427512... from 2023 shows that they're suffering similar issues of intergenerational wealth transfer when it comes to owning homes, specifically if your parents don't help you - you're unlikely to be able to get on the ladder.

There are a ton of homes that are not claimed but purchasing them, their value, the land value are all - as you know - quite different from the US/AUS/India where the value goes up. Different from the UK where you own the home, but lease the land etc.

Re: The average age of U.S. homebuyers jumps to 56

#16

Post by pempem »

intexpress wrote: post #4
mikestew wrote: post #3

Earlier quoted context omitted.

From TFA, emphasis mine: “The average age of homebuyers is now 56, up from 49 in 2023 …”

The article says: “That’s a historic high, up from an average age in the low-to-mid 40s in the early 2010s.”

So depressing. So, so, so.

Re: The average age of U.S. homebuyers jumps to 56

#17

Post by dietr1ch »

whatever1 wrote: post #10
gkanai wrote: post #8

Earlier quoted context omitted.

Not Japan, fwiw. Japan has been very reasonable for real estate for decades. We're now seeing inflation in major metro areas but outside of that, it's very reasonable.

Japan also suffers from severe population decline (I think it has been declining for 15 years straight). Aka the old guard let their assets go the hard way.

Maybe it's population decline instead of severe population increase beyond what society can sustain. It's like the infinite economical growth didn't account for finite resources.

Re: The average age of U.S. homebuyers jumps to 56

#18

Post by forgetfreeman »

whatever1 wrote: post #6

This is not a U.S only or even a western issue. UK, EU, China, India etc all suffer from crazy real estate prices. I think the whole world is due for a big societal revamp. The old generation has concentrated too much asset wealth for the productive generation to stay productive.

Imagine being outraged your grandparents managed to actually retire in a forum that very nearly worships a couple of guys that could purchase Utah. I'd consider reviewing the holdings of the 780ish billionaires currently residing in the US before declaring a generational issue.

Re: The average age of U.S. homebuyers jumps to 56

#19

Post by doctorpangloss »

runako wrote: post #5

Without taking away from the reality of housing costs, the long-term chart [1, chart is a year old but looking for trends] suggests other explanations. In particular, the average of first-time buyers was 35, up from 30 as recently as 2010. That's a bad trend. The overall average appears to be driven by people who have bought homes before. Anecdotally, the Boomers I know bought houses well into retirement where their…

A lot of never-purchased-home-before people have money but still don't buy a home. Why? What happens that causes people who have money and can pay to finally buy a home?

Re: The average age of U.S. homebuyers jumps to 56

#20

Post by PaulRobinson »

paulddraper wrote: post #13
iknowstuff wrote: post #11

Earlier quoted context omitted.

Are you aware of the vast disparity of wealth among American families? On the order of 100k for white families, 10k for black families. Wealth being passed down family trees ensures immigrants and people who are worse off now will remain priced out. https://www.brookings.edu/articles/black-wealth-is-increasin...

Inheritance is tough. Death tax takes a good chunk.

Do you know the actual rates, what value the estate must be at for it to kick in, and in which states? Are you aware of spousal transfers and other mechanisms to reduce or avoid it?

Most people get very worried about “death tax”, until they do the numbers on their own estate and realise either it mostly doesn’t apply to them or it’s marginal.

In the UK this is often used as a major campaign point but the number of estates actually subject to it is quite small.

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