Quote:
Originally Posted by John Mercier
I'm sure the data is correct.
I think it is more the way that each generation places value on things.
Homes over time have gotten bigger... but we don't know if that trend will continue. They may also be willing to put a greater percentage of their income into a home and forego other expenditures.
So will they be willing to part with more to buy the homes around the lake that in general are now larger than the past? What value will they give that? It will take time for the trend line to expose itself.
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Yes, times change. My father always told me to pay off the mortgage, so that no matter what happened (e.g. Great Depression) I'd always have a roof over my head. A few years ago, the norm was to buy a bigger house every time you got a raise or promotion. Now, people rent or buy a condo instead of a bigger house. Without equity to downsize for retirement, it will be interesting to see how Millennials retire. I priced a local (Nashua) retirement community a few weeks ago--$650K to buy in, and $7500 a month for a couple. I'm not worried. In a few years, my boat slip will be worth that much, and will appreciate faster than inflation.