Boomers aren't down sizing

It seems inventory isn’t going to get better. Also, starter homes are becoming a thing of the past. Builders can’t make money on that price point, so there’s no new supply being created.

I don’t see boomers downsizing unless they are forced to because the remaining mortgage is a burden or their health forces them to move in with caregivers or assisted living. This doesn’t seem much different to me from past generations. My neighborhood has plenty of folks in their 80s (silent generation?) who never downsized.

The only way inventory is going up is if companies start mass layoffs. Then people can’t afford to stay and move out of the bay.

Come on, just let us Boomers sell ONE investment home (cap it at 1 mil) with NO CAPITAL GAINS TAX or give us an incentive to part with some of our RE stash. That should free up some starter homes and pump some extra zing into the economy (not that we really need it).

Boomers won’t part with their homes, and that’s a problem for young families | CNN Business

No cap gain tax + ATH price.

this is so true. Our neighborhood (Dublin) has 3 80+ people (original owners, bought in 1962) livng in 4 bd, 2ba houses. I like these neighbors, but desperately wish younger families could move in but these people plan on living in these homes for the rest of their life, and as people live longer, maybe another 15 years?

My block is full of seniors, many 80+. Hard to resist the step-up in cost basis benefit.

But why does Uncle Sam want to let you go tax free? Don’t we have a gigantic deficit to worry about?

Yes, but don’t you guys live in suburbia (areas where one must kind of drive for everything)? I can’t believe all seniors are using internet delivery apps for groceries and such since they really shouldn’t be driving anymore.

I am more realistic with my expectations of myself 10-15 years down the road: I need to be in a location that is near groceries and stores!!! So, I am already decided against the current home which is in suburbia and plan to sell soon. More also about downsizing. A couple does not need a 4 bedroom home.

Living in suburbia vs the city is a separate topic from downsizing or not. I think most people would want to live in suburbia, even if they downsize to a smaller house. When one is too old to be fit for driving, then it’s time to go to a senior care facility probably.

My nextdoor neighbor is an old couple, 80+. Their house is very modest and I think unmodeled, so it’s not much to downsize from. The wife passed away a few years ago, and the husband has developed knee problems that make it difficult to walk, so these days he just stays inside his house all the time. They have 3 kids all living in the area so they drop by often. They hired a caregiver who comes a few times a week to take care of grandpa.

My neighbor across the street is also an old couple, 80+. The husband was a Stanford professor. Their house is big and their kids are not in the area, but they chose to age in place rather than downsizing and moving. They walk to the local Safeway and to restaurants on California Ave (I am in midtown Palo Alto), and they drive around too in their Prius. Last time I saw the husband he started to use a cane for walking so he might start to be less mobile soon.

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Most people do this because buying a new house and selling an existing house is huge task for elderly. Ditto for neighbors, lifestyle and other daily activities.


For those considering downsizing: