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You just posted another answer, in that typically inheritances on property and land are split evenly, which requires subdividing land and selling houses. Generation #2 doesn't have the ties that the original owner's children did, so the land gets sold off by generation #2.
You just described what happened in my own family, with land that had been in the family since around 1855. Generation #1 bought the land and started a dairy farm. The sons in Generation #2 originally ran the family dairy together, but over time most of them either died or drifted into other occupations, leaving only one son on the property to inherit it. Two of his three children (Generation #3) were female, and moved away when they married. The son in Generation #3 stayed on, but as the farm dwindled in productivity he found other work to actually make a living at and just lived on the property rather than actually working it. Generation #4 (my generation) has seven members, none of whom live in the city where the farm was located, and none of us could reasonably have relocated there. So when the place started to become too much for my uncle to maintain as he aged, the consensus was reached to sell it and split the proceeds between him and his two sisters. None of us WANTED to sell the family farm, but there really wasn't any realistic alternative. (And the property wound up being sold to a developer, who tore down the house, but who hasn't erected anything new on the property since the purchase over 15 years ago. Such is life.)
I think that maybe you should do some reading on American culture/society. The striking difference between America and Europe or other parts of the world is Americans' willingness to relocate. It's been an American characteristic since colonial times. In much of the US, settlement by Europeans is less than 200 years old, and relatively few Americans have family roots in one particular area, much less to one particular piece of property, that long. Americans, as a group, think nothing of pulling up stakes and moving for a better/different job or for weather that they like better or for a bigger (or smaller house) or for having a life-style the exact opposite of the one they currently have.
Even when Americans tended to live in more extended, multigenerational family situations, it wasn't unusual for the entire family group to pack up and move. There are numerous examples of this from the westward movement in the 19th century; from the migration of Midwesterners to California in the Dust Bowl era; from the movement of poor whites from Appalachia to the Northeast and Great Lakes; and from blacks out of the South during what's called "the Great Migration".
One important thing to note is that, although I do think Americans in general are more mobile, many are forced to move. We're seeing a trend these days toward increased urbanization, and quality jobs seem to be consolidating in fewer areas. Rents and property prices in major metros are going through the roof, but those are often the only places where you'll find decent jobs.
Back in Tennessee, you see this trend playing out well - Nashville is becoming a much bigger share of the state's job market and most of the new prosperity is being generated there - smaller metros are either barely treading water or declining.
One important thing to note is that, although I do think Americans in general are more mobile, many are forced to move. We're seeing a trend these days toward increased urbanization, and quality jobs seem to be consolidating in fewer areas. Rents and property prices in major metros are going through the roof, but those are often the only places where you'll find decent jobs.
Back in Tennessee, you see this trend playing out well - Nashville is becoming a much bigger share of the state's job market and most of the new prosperity is being generated there - smaller metros are either barely treading water or declining.
The existence of data is in no way a replacement of models and theories. You need a framework in which to interpret the data. Trying to paint the issue as a dichotomy between "tangible, demonstrable reasons" and a simplified model seems not to do justice, because you always have to make some sort of assumptions. In economics, any real world conclusion worth mentioning will be arrived at only by simplifying things and making assumptions which reality deviates from, to some degree or another. Any time you invoke averages, you ignore variation. So what?
What are your reasons for thinking that outright homeownership will go up, if not the same as what I am laying out?
So then how can you have a paid off house and a net worth of $200?
I bought a 120 year old house 20 + years ago.It is the most solid house I have ever seen.It will easily last another 120 years.Carpenter for 43 years and the crap I have to work on today are pure crap.100% cardboard exteriors.Even finding wood siding is getting imposible. but as long as they have Granite counters and fake wood floors $6000.00 and its sold.Mine cost $85000.00
You just posted another answer, in that typically inheritances on property and land are split evenly, which requires subdividing land and selling houses. Generation #2 doesn't have the ties that the original owner's children did, so the land gets sold off by generation #2.
I'm going to do my best to convince my cousins to put Grandma's ranch back together after she split it evenly among all her children. I believe I will have exactly 0% success!
Lol, I could see that causing many issues. The land was somewhat scattered across our county, so it was easy to split amongst siblings. They didn't subdivide anything. My dad had 2 sisters who both have done well themselves and they didn't want any real estate. He also had 2 half sisters and one took a small house in a town near here and the other took some land and then sold it. My father has no plans on selling the land he is still holding. My grandmother is still alive, but she decided to go ahead and split up all the properties among the children when my grandfather died, and she move into a retirement home. She didn't want to have to worry about anything or manage anything, so it ended up being a good deal for everyone. When it comes to it, I doubt I will take any of my dads acreage, my oldest brother will be more interested in that and I will let him have it and he is interested in keeping it and passing it down to his children. I know I will always have access to it for hunting, fishing, hiking, firewood, etc.
Houses get resold because heirs dont want to live where their parents lived. Simple as that. After a couple of generations nobody wants to live in it anymore and it gets sold . The heirs buy someplace else...
Unless you are a Kennedy and want to stay in the "compound".
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