Saturday , August 19 2017

Baby boomers: Housing sector’s new dominant force

epa02646933 (FILE) A file photo dated  06 June 2007 showing a real estate sign seen in front of a house in Queens, New York. US National Association of Realtors reported 21 March 2011 existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 9.6 per cent to a seasonally adjusted annual rate of 4.88 million in February 2011 from an upwardly revised 5.40 million in January 2011, and are 2.8 percent below the 5.02 million pace in February 2010. The numbers mark the lowest such level since almost nine years.  EPA/JUSTIN LANE

Jake Yanoviak is hunting for houses. On a weekday afternoon in North Philadelphia, the 23-year-old painter cruises along on his bike, its black paint obscured under stickers from breweries and rock bands. He turns onto a side street, where he spots a few elderly neighbors, standing on adjoining porches. He parks, leans on one handlebar and makes his pitch.
“Anybody on the block considering selling?” Yanoviak asks gently. “I’m not a developer, I’m not interested in renting to students. I’m just a kid trying to buy a house, fix it up and live in it.”
“We’re not going no place,” replies a 70-something woman, relaxing in fuzzy white slippers in the row house where she’s lived twice as long as Yanoviak has been alive. “All these houses are taken.”
Like much of his generation, Yanoviak is desperate to get a piece of an increasingly scarce commodity: prime American real estate. Millennials are finding themselves out in the cold because building has slowed, and longer-living baby boomers are staying put, setting up a simmering conflict between the two biggest generations in US history.
To succeed, buyers and real estate brokers must show uncommon persistence and, at times, diplomacy. Yanoviak has tried sheriff’s sales, lost two bidding wars, ridden miles on potholed streets and left notes in mailboxes, all to no avail.
People 55 and older own 53 percent of US owner-occupied houses, the biggest share since the government started collecting data in 1900, according to real estate website Trulia. That’s up from 43 percent a decade ago. Those ages 18 to 34 possess just 11 percent. When they were that age, baby boomers had homes at almost twice that level.
Public policy contributes to the generational standoff. Property-tax exemptions for longtime residents keep older Americans from moving. Zoning rules make it harder to build affordable apartments attractive to senior citizens.
“The system is gridlocked,” says Dowell Myers, a professor of urban planning and demography at the University of Southern California. “The seniors aren’t turning over homes as fast as they used to, so there are very few existing homes coming online. To turn it over, they’ll have to have a landing place.”
In Lexington, Massachusetts, a Boston suburb, broker Dani Fleming offers pizza and refreshments to entice the mostly elderly homeowners to attend seller seminars on “how to unlock the potential of your home.”
In Alameda, California, east of San Francisco, 38-year-old Angela Hockabout, her husband and their two children live with her 76-year-old mother-in-law, who is holding onto the home because the real estate taxes are so low. Under the almost-40-year-old ballot measure Proposition 13, they are tied to the property’s value when the house was purchased in the 1970s.
“Dear Homeowner, I have been looking to buy a house for almost a year and have not found one.”

Kale, Tomatoes
In Omaha, Nebraska, Bill and Peg Swanson, a couple in their late 60s, say they might move if they could find affordable single-family homes aimed at seniors nearby. Still, like many from their generation, they like aging in place, tending their garden of green peppers, kale and tomatoes.
“There are a lot of reasons to stay here,” Bill Swanson says. “We still enjoy putzing around the yard.”
That kind of thinking ends up costing young home shoppers such as Yanoviak. After graduating from Carleton College in Minnesota with a degree in media studies, he now lives in West Philadelphia with his parents, an arborist and a director of a nonprofit. For a living, he does carpentry and helps paint movie sets. He’s looking at homes costing as much as $200,000 and may rent out rooms to friends.
Yanoviak scouts property with Google Maps, Zillow and the city’s property-record site. When he finds something, he calls his real estate agent, Cecile Steinriede, who checks it out. He also keeps an old-school sheaf of letters in the rear pocket of his pants, so he can hand them out or slip them in mailboxes.
“Dear Homeowner,” they read. “I have been looking to buy a house for almost a year and have not found one.”
Brewerytown
Yanoviak has his sights on a neighborhood called Brewerytown, a community of brick, masonry and vinyl row houses that range from tidy to decaying, with paint peeling, holes in roofs and weeds growing from cracks in sidewalks.
Along with inter-generational tension, Yanoviak’s search raises delicate questions of race and class. He’s white and college-educated, and he’s often knocking on the doors of working-class black homeowners who see their homes as key to an affordable retirement and a way to pass wealth to future generations. — Bloomberg

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