Tuesday, April 19, 2005

Does the Real Estate Market Benefit or Suffer from Retiring Boomers?

That is the question posed at the end of this Business Week article.

"That all makes sense. The only question is, what happens when the Boomers start to retire, sell their primary residences and settle into the second homes they are buying now? Where will that leave the real estate market?"

Personally, I believe that most boomers, once their income scales down as they retire, will only be able to afford one house. The two house owning boomers, that exist now, will eventually end up selling one of their houses creating excess supply for years to come.

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