Real Estate: Baby Boomer Effect on the Real Estate Market - Will Houses Soon Become Cheaper?
Studies predict falling property prices as the large population cohorts will divest from their properties over the next few years. How realistic are the forecasts?
Millions of homes are expected to flood the housing market in the coming years as the baby boomer generation ages and passes away. Several studies predict a "Silver Tsunami" of properties being sold, leading to a price drop, in countries such as Germany and France. In France, 9000 billion euros will be inherited by 2040, with 60% of that amount being in real estate, while in Germany, 4.8 million homes are owned by baby boomers, which could lead to a surge in properties on the market.
Experts warn that this could lead to a significant increase in housing supply and a decrease in demand, particularly in rural areas, causing prices to fall by 30-50%.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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