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Much of the boomer wealth is going to go right into their own expensive healthcare, I think. I was a senior housing appraiser, assisted living costs alone are astronomical.
The on-going transfer of wealth from boomers is only going to help those who come from well to do families. Most people in the low-end of the middle class and below the middle class are not going to be receiving much, if anything, from their boomer parents.On-going transfer of wealth from boomers down the line is a major way to finance a residence.
The H+T Index provides a more complete measure of affordability.
By taking into account the cost of housing as well as the cost of transportation, H+T provides a more comprehensive understanding of the affordability of place.htaindex.cnt.org
single people buy homes too,. I bought 3 pieces of property as a single person in my 20s. That was a house and two farmland tracts.
for the agriculturalists it is even worse. I mentioned 2 tracts above. In the 1970's I paid $670 and $1,100 an acre for 32 and 20 acre tracts per acre. In the past 2 years two parcels adjacent to one of those parcels sold for $1.2 million ($15k/ac.) and $1.5 million ($14k/ac.) There is no one who can cashflow such land to raise cattle or grow crops. This land isn't Iowa black soils. And, even poultry barns (building intensive farms) cannot pay that for a tract of land (most poultry farmers are required to have a minimum of 40 acres.) Most of the cattle ranchers have moved west into Oklahoma to find affordable land. My home county was once the county that produced the most beef and chickens in the entire state. It was a major dairy producer. 30 years ago I valued a number of dairy operations both here and in Oklahoma. Today there isn't a single dairy farm that I am aware of still operating with 50 miles of me. Agriculture here is rapidly diminished in the face of rural sprawl that is not repeated in too many areas of the nation.
Did you ever do any P&L analysis WRT dairies? If so, at what price per acre does dairy farming become impractical?
Actually, while REITS and other institutional investors own most large apartment projects, it is a myth that institutional investors such as REITS own a large portion of single-family rentals nationally. Nationally, only about 2-4% of single-family rentals are owned by REITS or other large institutional investors, although there are a few markets (i.e., Atlanta, Charlotte, Phoenix and Jacksonville) where they own a much higher share. The vast majority of single family and small apartment buildings (2-4 units) are owned by individuals or small, family-owned entities.
In 2023, roughly 47% of US renters were in apartments. ~ 31% were in SFD. Of that 31%, # of properties held by SFR REITS between 2017 and 2022 went up by ~ 8.5%. The point was - as the age of first time home buyers continues to increase, that is a LOT of potential wealth being accrued by folks other than first time home buyers. A point you have not successfully dissuaded me from.
