Originally Posted by d_jeffrey
While I'm sure a bubble burst is coming, many people I know who own a condo in my building also have a house. They are using their condos for a week job, then go to their houses on weekends. The baby boomers want proximity to activities, so a condo makes sense for them, but being used to a big house and its lifestyle, many choose to keep their house too.
I've heard of this happening as well, but I think it's far from the norm. What scares me about this situation is what is going to happen to their (when I say their I mean the "boomers" in general) house(s) (whether inside or outside the city) when they want out?
I would assume by living outside the city and being able to afford 2 places to live (i.e. not renting one) that the house on the outside of the city is probably closer to a nice 2000+ square foot 2 story "McMansion" gem of sorts rather than some semi-attached off Trimm road...or else what would be the point of having two units?...lol
What's interesting to consider is what will happen when boomers in general want out of the abovementioned second property gems in, say Navan or Stittsville, etc, etc in order to live closer to downtown and/or to services? We all know that the boomer demographic out number younger demographics and dominate in almost every meaningful way (average incomes, savings, to voting habits, etc, etc).
Even with imigration trends over time, the influx of these big houses on to the market at today's (and, according to some, higher prices in the future) will be sustainable only to a limit of the younger people's/imigrants ability to afford and want to live in these types of houses in these areas (for example, Im sure I am one of many not yet 30 years old, who even if a 2 story 3000 sq/ft mansion on a huge lot came on the market today for 199K in Farhaven I wouldn't even consider).
Most boomers will eventually need to sell their house (either, the need the liquid equity, cant maintain it due to ill health, or death)....everytime I hear people over the age of 40 talk they seem secure in the fact that their house will be their retirement holding almost all their invested equity.
So if boomers, more and more, want to move into the city that will, based on a basic understanding of economics, drive the price of city living up due to a run up in demand. The only way that boomers will be able to afford it is if they can liquidate their other assets in the exurbs, suburbs, cottage country, Florida, etc (unless they are cash rich already). This as mentioned, will be dependant on willingness of younger generations to pay, and the overall debt burden the price puts upon them.
All this said, I personally dont think that boomers have a direct hand in inflating prices in places like Mondrian or Central....lol....I didnt see one person over the age of 50 at the opening on Thursday night!