May 4, 2018

Older people have the wealth

Planetizen -. "Since 1989, all of the net increase in wealth has been experienced by households now aged 65 and older. The wealth of those aged 55 to 64 is essentially the same is in 1989 (up just 3 percent); those under 55 are decidedly poorer; the average wealth of those 35 to 44 is 43 percent less than in 1989, and for those 45 to 54, is 33 percent less than in 1989," Joe Cortright writes for CityObservatory.

A lot of this disparity is driven by the value of homes, because a home is the largest asset that many households have. As the value of homes went up, it drove wealth to homeowners who had owned their properties for long enough to benefit from that increase. "In short, younger adults have seen their housing equity shrink precipitously, while older Americans have experienced a rapid increase in their housing equity," Cortright reports.

Washington Post - Nationally, Zillow found that a home buyer making the median black household income of $39,466 could afford just 55.3 percent of homes listed for sale in 2017 without paying more than 30 percent of their income on housing. Overall, 74.2 percent of listed homes were affordable to households earning the median national income in 2017. For white households, 77.6 percent of homes were affordable, while Hispanic households could afford 64.9 percent of homes and Asian households could afford 85.2 percent of homes.

1 comment:

Anonymous said...

Is there still value in the homes belonging to older people if there are no younger people to pay those inflated home prices.