Boomers Prefer To Die At Home: Enormous Glut Of Senior Housing

Complicating the Problem

Developers are scrambling to come up with facilities where seniors do want to live.

Assuming they succeed, what about all the already built developments that do not fit the bill?

And if they don't succeed, it's even worse.

Build for Millennials?

Perhaps builders would be better off building developments where millennials want to live. But student-debt ridden millennials cannot afford to buy much of anything.

Housing Bubble Reblown

(Click on image to enlarge)

As noted in Housing Bubble Reblown: the Last Chance for a Good Price Was 7 Years Ago.

Moreover, millennials delay family formation because of debt, so fewer need a home.

Still, others are squeezed by rent.

Squeezed Out of House and Home

(Click on image to enlarge)

Millennials are Squeezed Out of House and Home.

They cannot afford to buy and they cannot afford to rent.

This will force more millennials to move back home.

Others will move back home (if they are not already there), to take care of aging parents.

Secular Deflationary Implications

To top it off, attitudes about housing and family formation have changed.

Millennials do not have the same values as their parents.

That is a secular change, not a cyclical one, with huge deflationary implications.

1 2
View single page >> |

Disclaimer: The content on Mish's Global Economic Trend Analysis site is provided as general information only and should not be taken as investment advice. All site content, including ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.