‘Oracle of Wall Street’ says boomers control the housing market, and their enormous equity will keep them in place — ‘There will be no quick fixes’

Core Insights - Baby boomers now own over 54% of U.S. homes, a significant increase from 44% in 2008, indicating a shift in homeownership demographics [1] - 79% of seniors own their homes, with three-fourths having no mortgage, providing them with substantial equity to manage rising homeownership costs [2] - The housing market is expected to remain constrained as boomers are less likely to downsize, leading to limited inventory for younger buyers [3][4] Housing Market Dynamics - The housing market is undergoing a transformation, with no quick fixes anticipated, as seniors control the market and are not inclined to move [4] - The number of first-time home buyers has reached a historic low due to affordability issues exacerbated by the current market conditions [4] - Home equity lines of credit are becoming a popular financial resource for seniors, who account for 41% of outstanding revolving home equity credit [2] Economic Implications - The financial behavior of seniors, including borrowing against their homes, is influencing the broader U.S. economy, with expected growth in home equity funding over the next three to four years [2] - Despite the collective wealth of boomers amounting to $75 trillion, the distribution is uneven, with many seniors living paycheck to paycheck and struggling to afford assisted living [5] - External factors, such as tariffs and immigration policies, are also contributing to a slowdown in new home supply, further complicating the housing market landscape [6]