So I was listening yesterday and the reported says something like… Young people have a hard time getting a mortgage because the older generation has low mortgage rates…blah blah…but now they’re all loosing jobs, getting sick etc so “that will unlock housing or mortgages” something annoying like that.
Well yeah. It happens every generation. Until I suppose nobody can make enough money to rent either much less have a mortgage. I much rather hear about mortgage rates coming down after another happy CEO event. Yeah fucking unlock that shit please!
Yes, each generation dies off and passes its wealth to the next. But the boomers are an unusual case because they hold a lot more wealth relative to their size. Boomers and millennials each account for about 20% of the US population. But boomers hold 50% of the wealth in America, while millennials only hold 8%. The wealth transfer as the boomer generation dies off is going to be massive. And most of that Boomer wealth is tied up in real estate, which will have a big impact on the housing market when it becomes available.
https://www.nasdaq.com/articles/more-than-half-of-us-wealth-belongs-to-baby-boomers:-will-other-generations-catch-up
https://www.statista.com/statistics/296974/us-population-share-by-generation/
(Gen X is somewhere in the middle and I’m skipping over them, as is tradition. They wouldn’t want it any other way.)
Edit: meant Gen X, not Gen Z.
The wealth transfer isn’t going to happen. Its being eaten by elder care and medical industries, and any other predatory businesses that want a slice of the pie.
Don’t forget reverse mortgages for the real estate slice of the pie.
In reality nothing will meaningfully improve until the rich fear for their lives
Oooh, too late; medicaid took the house already.
Medicare Advantage took the house. Medicaid is the government run healthcare for poor people, and normal Medicare is the government run healthcare for old people. Medicare Advantage is the private plan for old people being paid for with a reverse mortgage. After they die the health insurance and the bank get to fight over the house.
Yeah I was going to say, our country is setup to drain any savings you have before you die via medical debt. Isn’t transferred to the next generation it’s intercepted by parasites.
And not even mentioning Gen X. Yep, whatever.
The problem is two fold. The boomer generation is spending more of their money and leaving less for inheretence.
There was a great article I saw the other day but I can’t find it now.
https://www.usatoday.com/story/money/2024/08/31/gen-z-boomers-inheritance/74908414007/
https://archive.ph/8gycC