Over 70% of all U.S. residential housing stock is owned by those 50 years and older says Meredith Whitney.  And 86% of the “avocado toast” generation (18-38) does not own a home.

Over $21T of home equity has been created over the last decade.  Most of this gain has accrued to older generations who own their homes free and clear.  So a 40% drawdown in home prices to pre-pandemic levels over many years would be absorbable by the market as long as the younger generations keep their jobs.