For Assets, Demographics May Predict Future Value

Here’s a thoughtful piece, worth reading and reflecting on. How does this affect your strategy for housing, if at all. Keep in mind, we need a place to live, so we’re going to pay for housing one way or another. But, how would the knowledge that housing depreciates, rather than appreciates, over time, affect your plans… if true?

For the United States, over the next 40 years demographics will shave about 0.8 percent a year off of where house prices otherwise would be, having an aggregate effect of 40 percent. That is the exact opposite of the 0.8 percent per year uplift house prices in the United States have gotten in the past for decades, a period in which the U.S. public have been conditioned by continually rising prices to over-invest and over-consume housing. via Reuters, “For assets, demographics may be destiny,  Analysis & Opinion

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