To avoid capital gains.

used to b that 1 home sale was not taxed. now the max on that is $250k.
all these yrs, i have improved my house. my $90k 2 flat, bought in 87, is now a $1m sf home. i never kept receipts.
even tho capital gains r taxed lower, it will still b a huge hit. i cd buy 1 of the smallest houses in my hood, and barely break even.

It will be as expensive as the home they are in. Relocating is expensive and usually involves family helping but middle age family members are too busy or not local for many so moving expenses are not cheap. My friends just sold their 4 bedroom home with barn and five acres for 600k less 6% realtor fees. . This was a normal older colonial home. Solid but not fancy. They purchased a two bedroom condo. After the place was painted and new floors put down the cost was 550k. What they got was laundry on the first floor, a sun room, and no grass to cut or snow to shovel. In reality most people do not have a home to sell that will cover the price of a safe and sound condo as the prices are over inflated for poor construction. In the old days it made sense to downsize because the new place would be less expensive so the difference could be banked for travel and ‘fun’. Covid didn’t kill all of us so I guess people will have to wait until we die to move up. This age group has really gotten the short shift from our society. Boomers most certainly didn’t ask to be born and guess what many of our parents are still hanging on! 10k a month for memory care with price increases every quarter. It’s kind of crazy! 😳

a nice profit to be invested. And I love my new, smaller, easier to maintain place!

Very fine! The market here does not necessarily equate smaller with less expensive!

The houses aren't well built and they're very close together and they cost more!

600+ k for a patio home and they look like they were trucked in and dropped on a slab.

Been through that with my parents in recent years. Found it to be extremely stressful.

I took care of my sister ten years ago and her rates increased annually without fail. Ten years later the facility where my mom is raises rates quarterly. They still blame Covid and of course inflation. It is out of control!

they had to go on Medicaid. Their lawyer helped as well as the nursing home get them on it. It just hurt to put them in a nursing home to begin with. I physically couldn’t care for them because I have my own medical problems. They both have passed now, but it still bothers me.

Always remember that! I think second guessing and judging ourselves harshly as caregivers is a thing because we do want the best and to able to do more but we are only human!💗💗💗🙏🏼💐

that. My husband has told me the same thing. He is the one that has kept me sane throughout all this.

Let’s just go out on that ice floe.

Even on the ice flow we would be an inconvenience. I’m envisioning sharpshooters entering the picture!

It's like we're tagged like they do to wild animals.

People in my state went on living and gathering while we were isolated. I’m afraid some preferred it that way. Out group will always be the problem children. It’s exhausting.

Private equity has been buying up homes for land banking, and air BnB owners likely take more homes out of circulation than aging boomers.

what I just read too - not about the BnB but the private equity. Buying, refurbishing (to a degree), and renting for outrageous (my word here) sums of money.

We busted our ass for it and plan to be carted out of it, feet first.

Oh, those selfish, selfish boomers!

They got big houses, raised families and now aren't going to budge.

What is it? Spite? Selfishness? Some sick idea that we want to cheat our kids out of affordable housing?

Oh, come on, WSJ! Give us a break here.

You know why I haven't downsized?

I can't. That's why. I would dearly love to get out of this place but if I sell, there is no way I would be able to find something that would be what I want/need as I grow older.

Here in Colorado, there is a dearth of condos. I would LOVE a ranch condo with three bedrooms, two baths and a garage. Guess what? Developers won't build them. Oh, there is a huge pent up demand, but silly Democrats in our state legislature - they insist the developers build quality condos as opposed to crummy, poorly built ones that fall apart around our knees. It's a regular ol' urination contest, and there just ain't any condos. Not like I want.

So here I stay - not out of some sick Wall Street form of disgusting greed-lizardness. Nope. It's because I'm better off here because if I sell, I won't walk away with enough to get a decent post-retirement place.

In some form or another, we are all hurt by the ol' Wall Street squeeze.

Oh, and a second guess what - corporations - that's right folks, publicly traded corporations are buying up single family homes and sitting on them. Some are rented out, others left vacant to flip when the opportunity rises.

Hey, wonder how come the good ol' Journal didn't throw that little factoid into this article. They love to blame people, don't they?

Last edited Mon Apr 15, 2024, 08:50 AM - Edit history (1)

assorted scum buying up all the available properties, land, etc, jacking up the prices into the stratosphere. No, instead, you pillory the Boomers, who are responsible, collectively it seems, for all the ills of our world. Go f### yourselves with the nearest rusty object, and get a real clue.

You are always so right. And pithy.

the word "right" in any context, if avoidable!) at least the majority of the time.

It is funny the words we end up avoiding these days. Now we have to deal with "conservatives" who are as far from conservative as they could be.

words and symbols until they are unrecognizable, irritates me no end. The flag is a perfect example. I see people flying the flag these days, I assume, unless I know them, that they are magats.

My immediate reaction when I see an American flag is some kind of extremist. Even the word Christian has taken on a negative connotation.

sold their homes it wouldn't solve the problem. But blame them anyway.

Last edited Mon Apr 15, 2024, 03:08 AM - Edit history (1)

…from realtors telling us that “someone” desperately wanted to buy our house and that we could make big bucks by selling now Now NOW.

I finally started telling them that I knew very well that we would not be able to afford to buy in our town a second time, and that in order to utilize those alleged big bucks we’d have to move far away.

We moved on our own the year we turned 70, and true to my prediction we had to leave not just the town but the county. We got a nice custom built home, thank you, and it’s bigger than the house we raised the kids in. It is not a McMansion. It is one story with wide hallways and no stairs and bathrooms that don’t need much modification should we ever need to. The people who built it lived in it themselves for 30 years, until they aged out and voluntarily decided it was time to move to one of those retirement places nearer their son.

And I want to ask the people who write these articles and make up these surveys: where is it written that we “owe” anyone departure from our own home. Retirement communities ain’t cheap, and continuity of care communities will take all you have before you die (nothing against either of those arrangements; we reviewed a number of fine facilities the years we helped a friend move from her home to independent living to assisted living, and she is in “memory care” now) .

This wonderful Capitalist nation of ours permits profiteers both foreign and domestic to buy up houses and apartments in job lots, and make obscene mounts of money while driving people who can’t cope out into the streets. We didn’t write the financial laws ourselves at any level of the game — and in fact there are any number of Boomers on the streets themselves for lack of an adequate social safety net.

Oh, but us selfish Boomers. I guess we’re not dying off nearly fast enough to suit the Wall Street Journal.

Just wanted to add my bit to all your insightful answers.

is the fuckers who purchase one 'for investment', live in it for a year and then rent it out. It doesn't take long for that to happen too many times.

Sorry, not spending half a million to live in a rental building.

Personally, I think they are promoted by malign entities that seek to drive divisions in democratic-leaning Americans before the elections.

and they have become successful at that.

a generation once known for anti-war demonstrations, Earth Day, and modern feminism is now just a group of selfish old geezers.

For people who would rather sit home and complain and make videos than get out and work for anything.

When did that rule get written?
Refusing to budge makes it sound like there is some sort of obligation to downsize.
Newsflash to WSJ: No such obligation exists.

We sold our home to our Realtor DIL in November of 2022 for a very good price as is. Even with the improvements we made over the years, it still needed some upgrades. By April of 2023, the house sold for over the asking price within 48 hours of her listing it. A 4 bedroom house with 2 baths, plenty of storage, nice neighborhood with a school, close to eateries and shopping, the City Bus route, the Post Office, etc.

Downsizing, cleaning, and getting rid of stuff took me 5 months non-stop. I realized how much I was hanging on to or had accumulated that I no longer needed or the kids did not want. At least my China is in the family still. What little we did keep, moved with us. I did all the packing up. We did need a new bed, bedroom furniture, a few things for my sewing room.

Living in a Senior Living facility now was a smart move. We have a community of friends here, I have clients I sew for, my daughter and younger granddaughters near by, walking distance to shopping, eateries, Medical facilities, etc. It was a good move. Plenty of space in our 2 bedroom, 2 bath unit. We pay rent that is reasonable for such a facility in a Twin Cities suburb.

After we helped our senior friends move we have started thinning way out. We are working our way through closets and cupboards. If something isn’t in use it gets a second look for donation. It’s a great feeling even if we aren’t planning a move.

Last three weddings I have attended. (Kids friends or offspring of long time friends) No china choice on registry. The kids aren't interested in formal dining.

A shit ton of high end cutlery, juicers, etc.

I grabbed my mom's costume jewelry and family photographs. I've got my mom's paintings (2 of them)

That's it! None of their junk.

that went out of print in 1978. My husband bought me the set 50 years ago when we moved to North Dakota that August of 1974. My daughter wanted it. A service for 8 with a few extra serving bowls I found on eBay for a small fortune.

We used it for Christmas dinner last year. Worked slick. She had room in one of her closets for it.

My mother did not downsize to a new place with a first floor master. She got a quad level. She loved it. No more than 5 steps between floors.

Until she got sick and stairs were an issue.

I'll never make that mistake. Older people I know have had similar problems with their parents. Unfortunately, near me only new McMansions have first floor masters. Not sure I'll retire where I work now, but that is the key to the next move.

They don't look ugly or as intrusive as you might think. It's expensive, but not as expensive as moving into assisted living or a ranch house somewhere.

Last edited Mon Apr 15, 2024, 01:59 PM - Edit history (1)

built it in 2008. Our current mortgage interest rate is around 3.3%. When we built it, we changed the design so that in our primary bath, the huge tub was replaced by a larger shower and a stackable washer and dryer. We have an entire lower level with two bedrooms, a family room, storage, an office, bathroom, and laundry room that we can totally ignore and live on the first floor if necessary because we designed it for older/old age. It’s a walkout level due to the slope of the land to the lakefront. Our first floor has everything we need on one level: two bedrooms, living room, eat-in kitchen, dining room, two baths, and a sunroom.

We get mailings monthly from Vacasa about how much money we can make renting our home. We have no desire to move unless one or both of us becomes incapacitated.

and plans to fill the bedrooms with friends and relatives. It's a noble idea, though don't know how it would work out socially. I mean, relatives, friends, friction in close living quarters. But for a long time resident of a major metro area with classmates and relatives and friends it seems a viable option.

In my old neighborhood one couple brought his parents to live with them, but first they built an add-on (there was room in their backyard to make the house an L-shape) . The biggest problem was the County codes regarding granny units, and the sticking point was the kitchen.

My friend is a very stubborn woman. She and the guy at the counter in the appropriate department went around and around while he tried to make her understand (without using the words) that if she started calling it a recreation room she could get 98% of the job done and approved if she would just start calling it a rec room. Then when the inspectors were gone she could have the stove installed. It took her forever to get the message that he was giving her a wink and a nod.

It was a beautiful add-on when they were done. The shower is a roll-in style, everything, and because the whole thing was designed and built from scratch it doesn't look like so many places where an older resident keeps adding improvised bits on as they age.

When and if interest rates come down, that will bring out more buyers, increasing demand, and driving prices even higher.

A tiny 2 bedroom, 1 bath that I bought in 1973 on a VA loan. And I ain't budging. Been an empty nester (2 kids) about as long as I was a full-nester. Just me now near the end and that's fine.

that size. In 1960 the average home built was 1289 sq. ft., my father built a new home that
size in 1959. Two brothers and I grew up it that home. My best friend came from a family with 5 brothers
they grew up in a home about the same size. Today families are smaller than the baby boom generation
was and yet the average home is 2657 sq. ft. People today build a home with 2657 sq. ft. Yet storage buildings
for people's stuff are filled up as fast as they can be built. I am single and I would be just fine living in
500 sq. ft. People complain about the cost of a new home, do they need a 2657 sq. ft. home and pay for
an extra storage building for their stuff? I live in the country; I have 1/2 acre of ground which is about
the average size of a lot around here at that time. Today you have to have a minimum of 1 acre for a
septic system. The minimum size of a building lot is 1 acre now but it is common now for people to build on
a 5-acre lot.

They can't turn as big a profit building starter homes.

And 1/2 acreis a big yard. We have 1/3 an acre and it's big for us. I think the homes many in Gen X and earlier grew up in were normally on 1/6th an acre.

People will do what's best for their situation. My retirement plan is to have a paid for house and stay in it as long as we can take care of it. 2500 square feet is just right for us and we worked hard to remodel our home, it's worth double what we paid for it in 2017. That's kind of the dream for millions of people, live in your own home as long as possible and hopefully until you die. I don't expect Boomers to be any different than me in that regard. My parents could no longer take care of their yard, so they sold and moved into an apartment. Friend has a mom in her late 80s who is still in her house and manages just fine.

getting an apartment. There will come a point where I won't be able to take care of my yard. It is also nearly impossible to live here if someday I can't drive. I figure I sell my house the money from it will pay my rent till I check out.

In general, most credit unions will have someone you can talk to. Your plan seems sound, but talking to someone who knows the tax implications and other factors is smart.

A lot of people lose out because they don't know some consequence to their plan.

And it’s just about 2300 sq ft, sitting on a half acre. Master on the main, can close off the upstairs if needed. Large living and dining room, kitchen on the small side.

My house is small for the neighborhood. Most of the nice old homes have been torn down and replaced by huge homes.

I don’t see us leaving this house any way but feet first. We are the third owners.

I’d love to own a smaller home but we’d never be able to find the privacy we have here.

the ones coming up behind us can buy them. Horse hockey! I built this house to die in.

In what stupid world do we expect people to downsize? Or feel entitled to it? You bought your damn house and took care of it all these decades? Stay in it if you want!

Maybe the WSJ should be looking at the amount of equity firms that buy up housing. Or (at least what was a problem in my province) foreign fuckery with the markets.

Private equity should not be allowed to buy single family homes en masse. Some cities and states are beginning to push back on this. But the same groups that own hotels got into the Air BnB business and it's been a big contributor to the bodding wars for houses that we've seen for years now. An equity firm's equation is totally different than someone trying to buy a house to live in, the math checks out for private equity at a much higher price point, even sight unseen.

And of course, Dems are the only ones trying to address Private Equity buying homes for short term rentals.

Like Rupert Murdoch's assignment in life, as it were.

Eight years ago (I am a boomer) my wife and I moved from NJ to North Carolina. We sold our home in NJ and bought almost the same size home (about 2,400 sq. feet) in North Carolina as we had in NJ for approximately 40% of what a similar home would have cost in NJ. In addition, our real estate taxes in NC are about one tenth of what they were in NJ ($1,600 in NC vs. $16,000 in NJ). Seemed like a pretty smart thing to do, especially since our grandkids live in NC. I didn't realize we were selfish and screwing up the housing market when we did it. (sarcasm)

I know NC has a D governor, but it’s the red legislature that is doing all the damage and I don’t see that changing hands given the district map.

About 10 years ago my cousin moved to Austin from Boston to a similar sized home to be closer to their daughter’s family. They hate it because of the politics in Texas, and now the grandkids are both in college out of state and who knows where they will end up after graduating.

We're helping turn NC blue. With the influx of retirees from other states in NC, demographically it will, sooner or later, turn blue like Virginia and like Georgia is headed to.

responses to this oft-repeated bs trope.

Last edited Mon Apr 15, 2024, 11:50 AM - Edit history (1)

Hi population states tend to have high taxes.

So in CA I am sitting in a five bedroom house with just the wife. Here is why, no more mortgage, pay property taxes and maintenance.

So fixed cost of $5,500 per year plus upkeep, most years that is about 5 to 10k.

Let's say I move down the street to a condo half the size. Property tax more than doubles and have another 10k in HOA fees.

So downsize and pay more?!!! Doesn't seem like a good plan.

Other option, take the equity in the home, buy a two bedroom home built 1960 or prior close to the Pacific, issue is property taxes, triple or quadruple of the current taxes.

So, there are a lot of people out there like me, downsizing will end up increasing monthly costs.

Property taxes are higher in gentrified areas (like the coast)
Many smaller properties are not as well built.

I'm in a 2200 sq ft - 3 bedroom built in 1979. Hubby and I couldn't agree on bed, (I've got a bad back and sleep on this old firm, single bed. Single beds are much better for your back) so we're already in separate rooms. Spare room is for when the kids and grandkids visit.

even though millions of Americans are living in economic distress.

1700 sq ft ranch. We did do an addition and remodeled house from top to bottom (plus outside.) Just did a whole new front entryway.

I could put my house on the market this second and have multiple over ask offers by the end of the day. But I love my house and I’m sitting on a 2.35% mortgage with an $800 monthly payment.

Any home in my town - whether small or big sells in days. It is the school district which drives the sales in my town.

Every inch of available land left is being built on. Mostly it’s the new farmhouse style which has replaced the McMansion. It’s a few houses or a new street here and there. Priced around $800k and they are selling,

Selling season just started here in upstate NY but it’s a trickle of homes coming on the market. A lot are homes where the owners have died and the estate is selling it. They all need a ton of work as most haven’t had anything updated since they bought them 40 -50 years ago.

gave the old house to the daughter in a sweet deal

They have the entire family over if a grand kid does nice poo poo
They are like the fricken waltons

They use every damn inch of the place for family

I am almost a pathological introvert and it was way too much for me

We can walk in the woods or on quiet streets. There is no crime.

Sure, the house is big, but we can shrink down if the need arises.

The mortgage is paid. All of our kids live nearby.

Stuff it nyt.

Fuck the WSJ. I’d use a bucket of dirt to wipe my ass before I’d use that rag.

even though our 2 children are out of the house. Our house is paid for. For what we pay monthly in property tax, insurance, and extra utilities, there is no way would could rent anything that wasn't horrible.

We'll be staying until it makes sense not to. Which may be when one of us dies. We are trying to get rid of things so that's it's easier to move or for our kids when we pass.

market in the financing of any new home, and we're happy, nor do we ever want to move to a 'retirement' community (no way). And ironically, I would rather upsize than downsize too.

I guess when the markets were right for these the kids of boomers to jump into the markets and do their thing, they should have, but didn't. Perhaps COVID and the uncertainty w/ this caused among other things, the markets to 'lock' up. Also, when I hear about the Insurance issues like in Florida, I'm sorry, but stay down there in FL. Leave us alone, I don't want the ungodly insurance mess in our neighborhood.

In spring 22 bought 1 bedroom 500 sq ft condo in Boston. Paid over ask and a higher mtg rate ( but not nearly as high as it is now. Had to be owner occupied for a year to get tax break from City of Boston. Rented out as soon as he could. Rent covers mortgage and HOA.

He makes a lot of money so was able to afford to buy both properties with no help from us.

years ago. I hope that in today's market (and your son is proving it), that smart buys are still possible, and that if one is on top of their game, they can navigate the morass of real estate successfully!

and I would like to hear your thoughts on why you would never live in one.

We're quiet and don't get out much. We'd like to move closer to the Oregon coast, but want to avoid living next to a noisy AirBnB; so we thought an over-55 would be the way to go. Any advice you feel like giving would be appreciated.

It is paid off, although I have a LOC I'm using for improvements. I would like to move, but the houses I could afford need work, so I'll stay. I hate this neighborhood now. Full of scofflaws, noisy, has gone from a residential street to mixed with home businesses like furniture refinishing, junk vehicles, and probably drugs.

I'll leave this house to my grandkids. If they sell it, they'll split the proceeds with my kids. I'm happy to say that everyone is financially secure, and don't need what I'll leave. If I move before I die, I'm planning to take what I want to keep, and auction off the rest, cross downsizing off my list

But I’d have to leave California and that’s not going to happen.

My "greatest generation" parents didn't move (their house was 2300 sq ft)

Our house is just under 2200 sq ft

We have grandkids that visit.

Why baby boomers???

It was neither downsizing nor anything else. We moved from a single family home on a typical city lot to a townhome. Same size. Same price. We simply changed where we lived, so I could shed snow removal and lawn care. If anything, we spent slightly more for the new place.

The house we were in was paid off, and now, so is the one we moved to.

Can't afford to move. The neighborhood is 'built out' with nowhere to go but 'up' (and that aint happening). The value has quadrupled yet capital gains taxes will eat up much of my profit if I sell. Plus. I like it here. Clean, safe and removed from the ills elsewhere.

Not going anywhere! This house isn’t “huge” and has a small, easy-care yard. I’ll think about it in 10 years maybe

I'm 59 and hubs is 61. We're both retired, but run our own computer app business. His mom is still alive down in Florida, and my aunt lives about a mile from us. We're retirement-community curious, and have looked at one place in a nearby community that was built about 10-15 years ago. It has both houses and condos. We're looking at the houses.

"Downsizing" my ass! Most of the models are the same size as we currently have, or larger. While the master bedroom is on the first floor, there are two rooms and a sitting area upstairs - presumably for when the kids and grandkids are visiting. I would probably turn one of them into a craft room for myself. But the kicker is that they're more expensive than we could get for our 3-bedroom, 2.5 bath split-foyer house. Then there's the monthly HOA fee. IDK what that is, but at least it covers grass cutting, snow plows, etc.

Like I said - curious about retirement communities, but not committed yet. There are advantages and disadvantages to staying in Maryland. All of our friends are here, as well as the volunteer work that we do. But the taxes and cost of living are high.

and lot here in Austin. They have lived there for 62 years. While they could probably sell for a good price, to go elsewhere in this town would be financial suicide.

It's simply unaffordable to downsize in many places.