HOUSING BUBBLES


IN THE 1950”S MY PARENTS AND PARENT IN LAWS BOTH BOUGHT HOUSES FOR APPROXIMATELY 25,000 DOLLARS EACH IN THE SAME TOWN. IN THE 1970’S THEY WOULD BOTH SELL THEM FOR APPROXIMATELY $100,000 EACH. TODAY BOTH HOUSE ARE ESTIMATED TO BE WORTH SOMETHING IN THE ORDER OF $750,000 EACH! THE GREATEST GENERATION EXPECTED TO MAKE MONEY ON THEIR HOMES AND THEY DID.

BEFORE THE BUBBLE BURST NEW SINGLE FAMILY HOMES DOMINATED THE MARKET. TODAY IT IS DOMINATED BY MULTI FAMILY HOMES! MY EXPECTATION IS THAT THE BOOMER GENERATION WILL LIKELY BREAK EVEN ON THEIR SINGLE FAMILY HOMES RESALE WISE WHILE THEIR KIDS WILL LIKELY LOSE MONEY ON THEM.

AND THAT IS ALL I’M GOING TO SAY ABOUT THAT!

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