Tuesday, June 28, 2005

Baby Boomers, Please Move to North Carolina

This July 1, will mark an important date in demographic history.

“The first members of the baby boom generation soon will be eligible to tap into their Individual Retirement Account (IRA) nest eggs without penalty when they turn 59 1/2 on July 1.”

As I have wondered here on this blog before, when the more affluent boomers start to retire en masse, will most of them sell their houses in Jersey and move to their North Carolina or Florida homes, or will they keep both houses?

If they only decide to keep one house, then I would imagine a pretty decent supply of houses will be coming on-line in the next 10 years. On the other hand, if some boomers decide to live in Jersey in the summer and in Florida in the winter, then the supply of housing should be constrained.

In my opinion, the boomers are going to get screwed two ways as they enter retirement. First, they will all start to draw their money out of the stock market at the same time. As prices plunge, and they can’t make ends meet, they will be forced to unload their vacation homes at rock bottom levels.


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