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Animal Spirits Podcast

The Fed Should Cut Already (EP.348)

Feb 21, 2024
The hosts discuss vacation observations, loneliness cure, stock market drivers, expected returns, surprising top stock, Bitcoin ETF flows, no baby boomer retirement crisis
01:00:34

Podcast summary created with Snipd AI

Quick takeaways

  • Longer homeownership durations in the US are increasing, driven by reasons like reduced flipping, cost considerations, and fewer moves.
  • Baby boomers' stable homeownership at older ages may avert retirement crises, creating a strong housing asset for the future.

Deep dives

Increasing Homeownership Duration

The typical US homeowner now spends an average of 12 years in their home, double the time from two decades ago. This trend can be attributed to various factors, such as the decrease in flipping homes and the high costs and frictions associated with selling and moving. While it may reduce housing supply, longer homeownership durations have advantages, including avoiding fees and reducing the need for frequent moves. Additionally, the increasing number of baby boomers retiring and staying in their homes contributes to this shift. Overall, longer homeownership durations have become more prevalent and are seen as a positive trend.

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