Housing: Big picture from today's Barron's

Macro trend is towards higher housing prices. Just like your 401K don’t look at the prices every month.

Here is the Barron’s article:

Sept. 11: We’ve discussed a range of factors we see as having acted as drags on inventories of existing homes for sale. Think of single-family housing REITs, distress inventories having been pared down substantially, and homeowners being trapped by limited or negative equity positions. One factor we haven’t touched on is that the stock of existing owner-occupied housing has become increasingly concentrated among older homeowners. To the extent older homeowners are staying put rather than downsizing and moving elsewhere, this is limiting the quantity of existing homes available for sale.

As of the Census Bureau’s 2016 American Community Survey (2017 data are due later this month), 54.3% of owner-occupied housing stock were units with a primary householder aged 55 and over, a share that has risen steadily from 41.1% in 2000. Over the same period, owner-occupied units with a primary householder between 25 and 44-years-old fell from 34.7% in 2000 to 24.2% in 2016. As a side point, this decline in the share of the owner-occupied housing stock owned by those between 25 and 44 years old reflects declines in both the 25- to 34- year-old and the 35- to 44-year-old age cohorts.
–Richard F. Moody

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I have commented on this issue before. Is a consequence of the freehold strata title favorable to those born early. The strata title should be leasehold, say, 60 years.

Not sure what you are referring to. Is this for US housing market?

yes. Just think of the consequence of freehold, you would realize you don’t need Barron to tell us what would likely to happen. Ok, you need Barron to tell us the % :slight_smile: but not the direction.

America is built on the concept of private property. Leased land is for monarchists and communists. The very idea makes me:face_vomiting:

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