Dr. Housing Bubble 04/10/15

[westerebus]

1. Local outlook out my front door...

Boomers are not moving to larger homes and as a result of the last economic shock, are digging in and paying down debt.

The result is the base affordable or starter home market is not opening up as it had in the past. Fearful of not having a job connection available and providing safe haven for adult children and their siblings, the lure of golden years on the beachside condo has past many by. In place and at home debt free is the game plan for many.

Boomers are splitting retirement, while a working spouse remains in the workforce. Or returns to a company as a part time or contract employee. Or combinations of family members go generational in the home of relatives to pool resources.

Single boomers are making room for non relative house sharers to make ends met. Housing demand for smaller one story units has not caught the attention of traditional builders. Multi family units taking up inner suburban land space.

All this depresses the broader housing market which in turn diminishes the economy across many sectors. Construction trades to trash haulers to insurance agents and school funding.