Tags: Baby | Boomers | Housing | Market

Baby Boomers Could Flood Housing Market

Monday, 12 March 2012 07:15 AM

A new report by the Bipartisan Policy Center says that baby boomers could flood the housing market during the next few years as they list their homes for sale and seek to downsize or move to other areas of the country.

"Seniors there are already putting their homes on the market and the absorption of housing is less and creating more inventory," The BIP Center’s Rolf Pendall tells CNBC. "There's hesitancy on the buyer's part."

As boomers downsize because of retirement, finances, health or death, they're expected to release some 26 million homes onto the market by 2030, according to the Policy Center paper.

Editor's Note: Google Banned This Video But You Can Watch it Here

The problem is that echo-boomers, or Generation Y — those born between 1982 and 1995 — may not be buying up the inventory, says Pendall, whose retired mother currently has her home on the market in a move to downsize.

"Whether it's jobs, confidence, tight credit or a slowdown in immigration, there could be a real slowdown in buying from the younger generation," says Pendall.

The report also says that young adults are struggling with higher levels of credit card and student loan debt than their elders — some of which could take decades to pay off.

"Certain areas of the country are better off than others," Pendall says. "But if we look at the Northeast and Midwest, seniors are going to be putting homes on the market and moving to warmer climates. That means more inventory to sell.”

“Housing will depend on the echo-boomers, and it's not known what they will do."

The World Property Channel reports that, since the U.S. housing market needs the unemployment rate to decline in order to fully recover, Friday's announcement of the latest unemployment stats drew lackluster response from the real estate industry.

Editor's Note: Google Banned This Video But You Can Watch it Here

© 2018 Newsmax Finance. All rights reserved.

1Like our page
Monday, 12 March 2012 07:15 AM
Newsmax Media, Inc.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved