Boomers Won’t Move, and Millennials Aren’t Buying

Fretting about the shortage of homes on the market? Think of the baby boomers, they’re gumming up the works by aging in place rather than moving to one of those retirement communities. Always causing trouble right?

Affordability, high student debt, and less loan availability are just a few of the reasons that millennials aren’t buying homes at the rate of previous generations. Urban Institute reports that 37% of millennials own homes in 2015 – a full eight percentage points lower than Generation X and baby boomers of the same age.

Well, we saw a spring bounce in existing home sales last week, then a new puzzling development: new home sales nationally fell to a five-month low in May. What the heck is going on?

Right now there are a lot of homes on the market in Montecito. Almost a year and a half out since the fires, floods, and debris flow disaster it becomes difficult to get homeowner’s insurance. Prices seem to be coming down, and the high-end properties are struggling. Some think this might be a good opportunity for investors who think the homeowner’s insurance problems may be temporary.

It’s a guessing game. Nonetheless, if you’re thinking of buying in Montecito, talk to your insurance broker first. AIG and Chubb who had previously been insured in this area are not only not insuring, but are not renewing some policies. Cause for concern? Yes, although Lloyd’s of London is insuring, it’s expensive.

The video below is a humorous take on Boomers and Millennials. Not for the comedically challenged or humor impaired, but it is hilarious anyways.

Mark Danforth Lomas