There are now more homebuyers over age 70 than under 35 - Unusual Whales \ stacker news ~Construction_and

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There are now more homebuyers over age 70 than under 35 - Unusual Whales unusualwhales.com/news/there-are-now-more-homebuyers-over-age-70-than-under-35

533 sats \ 9 comments \ @Scoresby 11h Construction_and_Engineering

In 2024, there were more homebuyers over the age of 70 than under 35, according to data from the National Association of Realtors (NAR).

Older baby boomers, born between 1946 and 1954, made up 22% of buyers, while younger millennials (born 1990–1998) accounted for just 14%. Gen Z buyers (born 1999–2011) represented an even smaller share at 5%. Deutsche Bank’s head of global macro research, Jim Reid, noted that nearly half — 46% — of all homes sold in 2024 went to buyers aged 60 and above.

What do you think causes this problem? (don't cheat and say fiat)

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254 sats \ 0 replies \ @SimpleStacker 10h

But seriously, fiat

102 sats \ 2 replies \ @BlokchainB 2h

I think wages have been very low for the marginal worker. It’s mind blowing to me to see large trillion dollar companies lay off employees then everyone wonders why young folks don’t have any money to buy anything of substance.

Due to wages being depressed for whatever reason people need a loan or a Buy Now Pay Later for large ticket items.

If people wanted to work and save money for 2 years to buy a car or house it’s nearly impossible.

86 sats \ 1 reply \ @Scoresby OP 2h

Yeah, it is certainly the case that wage inflation has not been nearly as much a thing as price inflation. I say this, and then I think if it's true. Here's the official charts for wage growth and price inflation:

They seem to imply that wage growth has been staying above 4% since 2021. I'm not sure I believe that.

0 sats \ 0 replies \ @BlokchainB 20m

Me either

102 sats \ 0 replies \ @Stackernerd 8h

Older buyers have equity, cash, and less debt younger buyers face high prices, stagnant wages, and low supply. The market’s tilted toward those who already own.

102 sats \ 0 replies \ @grayruby 10h

Yikes that can’t be a good thing.

102 sats \ 2 replies \ @byzantine 10h

attempting to wealth transfer to the next generation -> buy a house then gift it to your children. many of these well off boomers have forced withdrawals from their 401k and need to deploy their dollars before they die.

Under federal tax law, the responsibility for the gift tax does not fall on the recipient. Instead, the person who gives the gift, known as the donor, is responsible for paying any applicable gift tax. The Internal Revenue Service (IRS) provides the donor with tools to manage this potential tax liability, meaning in many cases, no tax is actually paid.

The primary tool is the annual gift tax exclusion. For 2024, a donor can give up to $18,000 to any individual without triggering a gift tax or needing to file a specific tax form. Since a house is almost always worth more than this amount, the donor will need to file a gift tax return using IRS Form 709. This form discloses the gift to the IRS.

Filing Form 709 does not automatically mean the donor owes tax. The value of the gift above the annual exclusion is applied against the donor’s lifetime gift tax exemption. For 2024, this lifetime exemption is $13.61 million per individual. Only when a donor’s total lifetime gifts surpass this amount does an actual gift tax become due.

102 sats \ 1 reply \ @byzantine 9h

also increasingly common is under priced renting to children and then when the parent dies they gift the house to their renting heirs. helps the next generation live in a nice neighborhood and parents get the tax depreciation of the house to offset other forced withdrawals of 401k dollars

0 sats \ 0 replies \ @Scoresby OP 2h

I thought the gift tax exemption was lower than that. Does make sense how older folks could be buying houses for their kids to live in.