Comments by "worn down" (@worndown8280) on "ZILLOW'S WRECKLESS NEW 2023 Housing Market Forecast" video.

The median size of an American home is over 2200 sq ft. That combined with aging boomers and smaller levels of family creation scream for more multigenerational living arrangements. Boomers SSI wont be able to keep pace with inflation or the property tax burden and the younger generations dont have to get a mortgage, its win win. Currently multigenerational households account for 18% of all households. Thats only going to increase as the demography of the US greys. This will have a further deflationary push on real estate prices and rents. The question as always, how fast will this happen. It happened very fast in 2008 as people lost their homes. It will be interesting to see what comes of it in the future.
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@njerseydavid It only works with adjustable rate mortgages. But then you have to refinance. That is the gamble. And its what happened in 2007-2008.
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@njerseydavid They will be if they arent presently. But some may have enough padding to get through a year or so thinking, "the fed will pivot", "interest rates will drop so I can refinance" and other such things. Its all cope as the kids say. This is the same thing that the renters and flippers ran in to back in 2007-2008. And we are going to have a repeat. But this time if the Fed loosens credit inflation will explode. So there will be no reduction in rates unless there is some sort of systemic failure but then the markets are dead anyways. I would imagine in many rental markets they are negative in rents vs costs already as you stated. It will get ugly.
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