The great housing dilemma - baby boomers aren't moving

[BV]

Until now we were told that the baby boomers were retiring and heading for warmer climates but it appears that it isn't so.

Housing availability problems could be solved if just one in five baby boomers moved to a smaller place. The only problem is, they like it where they are and aren't moving

http://news.domain.com.au/domain/re...the-great-housing-dilemma-20100830-13y5n.html

 

[Sunfish]

Housing availability problems could be solved if just one in five baby boomers moved to a smaller place. The only problem is, they like it where they are and aren't moving

How can they? They still have their good-for-nothing kids at home with them

Are you sure that most "underutilised space" isn't in Gen X & Y McMansions?

 

[travelbug]

Give them time.

The oldest Baby Boomers are only 65. The youngest 46. (Baby Boomers- 1945-1964).
I'm a Baby Boomer with a big empty house but my hubby has too much junk in his garage for us to move.

Plus the kids keep dropping in for a while.

 

[Sunfish]

I'm a Baby Boomer with a big empty house but my hubby has too much junk in his garage for us to move.

When I look at the junk I've collected over the years I just think "Bugger it! I'll die here and let the inheritees clean it up". Nothing for nothing.

 

[Rockstar]

Between a fellow developer and I we have had virtually all single boomers who were interested in our 2 bedders we have been building - and there have been plenty of them.
My dad is now by himself after mum passed away early in the year. He is thinking of downsizing to a small villa soon as the large house is a hinderance to maintain. I don't think there will be a stampede of downsizers but there will be a trend of increasing demand for smaller dwellings.

 

[Ausprop]

this article:

http://www.news.com.au/money/proper...rself/story-e6frfmd0-1225912176644?area=money

suggests completely the opposite, saying there are so many down sizing boomers that the middle market has become distorted. So someone is telling porkies

 

[Ausprop]

FWIW I beieve the 2nd article

 

[Sunfish]

I don't think there will be a stampede of downsizers but there will be a trend of increasing demand for smaller dwellings.

There isn't a lot of empathy for those who don't fit the "SS" mould here but if you think about it from their perspective, there will not be any rush.

Obviously I have a lot of friends and rellies who are BBs and I don't know of any really considering moving. (One SIL moved from Julia Ck to the coast, but that's reasonable.)

What's in it for them? The sea-change/tree-change thing is over-rated and those who didn't do it before the GFC prolly wont now. Besides, the only thing I'd consider almost universal is their love of the Grand Kids and many of their over-achieving sons and daughters NEED them so they can keep their two jobs and McMansion. The parents may not approve but they will not let the littleies suffer.

So don't plan on any mass exodus. Even when you could sell your Syd house and buy two elsewhere, not too many took up the offer.

Edit: I am looking at this from the view of actually moving "out of the city".

 

[Sunfish]

this article:

http://www.news.com.au/money/proper...rself/story-e6frfmd0-1225912176644?area=money

suggests completely the opposite,

Does it? It STARTS that way and then goes to some lengths to say that it isn't working, as in this passage:

"One problem with downsizing is that, while prices may have risen such that it is tempting to sell and unlock money, the prices for the kinds of properties you might want to downsize to have also risen," Bennett says.
Squeeze on housing
"In theory, it is a good idea but it only works if the new property gives the downsizers both the kind of swap in lifestyle and finances they are looking for," Bennett says.


even saying at one point: Property investing has become a "Ponzi" scheme, where people are increasingly hoping for future capital gains to make the investment worthwhile, Minack says.


Funny article really,

 

[BV]

Besides, the only thing I'd consider almost universal is their love of the Grand Kids and many of their over-achieving sons and daughters NEED them so they can keep their two jobs and McMansion. The parents may not approve but they will not let the littleies suffer.

So don't plan on any mass exodus.

I agree 100% SF, and as others have said their kids or grandkids will stay over so the space is needed

 

[dcarr]

My boomer folks are 62 and still use their 5 bedrooms twice a year when the family gets together. They're only just now looking into 4wds, caravans and PPOR subdivision options. Rather than a seachange they want to move citywards to something smaller and closer to facilities, but find it hard to let go of their current friends and lifestyle.

I don't think we've seen the bulk of the boomer movements yet.

 

[depreciator]

My mother, who at 75 is way past being a BB, upsized. She went from a two bed unit to a three bedder. She lives alone but likes the space.

 

[Rockstar]

Well....... we all see it through our different coloured glasses and according to our own observations. I (and local agents) am seeing a trend where I live and invest so that's all that counts for me. Make your own judgements based on researching your own areas before you invest in smaller size dwellings.

 

[Aaron Sice]

i think reviewing emotional staistics is likely to find all kinds of holes and theories that conflict with each other.

god i'm getting to hate real estate now.

 

[dan c]

When I look at the junk I've collected over the years I just think "Bugger it! I'll die here and let the inheritees clean it up". Nothing for nothing.

I was at my parents place over the weekend, and I'm sure dad is thinking the same thing!

They love their place, have been there over 30 years and wouldn't want to move.

Sometimes the economists forget the non-financial factors in real estate decisions.

 

[skater]

Well, I'm a BB (just) and I have no plans of getting a smaller house. Heck, we've only just got a bigger one. Admittedly it is quiet now the kids have left, but I wouldn't want anything smaller now.

Hubby is the youngest of seven kids and not one of them are thinking of downsizing either. They all like the space. His mother, though, did downsize several years ago. She is way past boomer age and is now into her '80s. She moved from a large old house that needed much work to it into a three bed villa. She has no plans of downsizing further.

 

[MichaelW]

You hit the nail on the head Skater. Boomers aren't planning on downsizing YET! Once they get to 80 odd and realise they are not invincible, they'll change their minds. But for now they think they're still 30-somethings and are behaving accordingly. Now, if only Mick Jagger would hurry up and die, they might get a reality check...

Cheers,
Michael

 

[depreciator]

Yep, the trend is just delayed. People logically thought lots of boomers would downsize by choice. Many more will do it through necessity much later on.

 

[skater]

You hit the nail on the head Skater. Boomers aren't planning on downsizing YET! Once they get to 80 odd and realise they are not invincible, they'll change their minds. But for now they think they're still 30-somethings and are behaving accordingly. Now, if only Mick Jagger would hurry up and die, they might get a reality check...

Cheers,
Michael

Ah, but my MIL is in her 80's and still has a three bedroom place. I believe that this is not that unusual amoungst her still able bodied friends either.

The only reason she downsized previously is because she was able to access a good wad of cash by doing this and the new place is a lot more modern and comfortable for her. Her current place is worth around half of what her old one was.

 

[MichaelW]

Yep, the trend is just delayed. People logically thought lots of boomers would downsize by choice. Many more will do it through necessity much later on.

That's what I think will happen. Eventually all the GenXers will get sick of going around every weekend to clean Nanas house and dole out her pills and we'll politely push them into more appropriate aged care with nurses on call and nice young men to help lift them in and out of bed. We're all human, they will downsize eventually, either into a 3x2 or a 6ftx2ft box...

Cheers,
Michael