Boomers mostly worked one job between two people, and had the silent generation to take care of their kids so they had a lot of time for masterbatory lawn care/putting trashcans away the second the trash truck pulls away/nonsense.
Now they are retired and have even more time, but also authority over people far busier than they ever have been.
1. ...and no, I'm not a Baby Boomer either.
... or pour oil in the fire of the great culture war, here in the secondary frontline of young vs. old, and accomplish nothing.
Here in the UK the boomers were able to work one job, get a house on an easy mortgage and now they’re old and have nothing to do they campaign against any development that might slightly inconvenience them or reduce their house price (spoiler, most developments wouldn’t)
https://www.financialreporter.co.uk/income-to-house-price-ra...
The very real problems with affordability of housing in the UK have a number of causes but the key issue is supply. Successive governments have simply failed to build sufficient housing to meet demand. NIMBYism alone can't explain this lack of investment.
"Blame boomers" has existed for perhaps a decade if we're being generous.
1989:
- Interest rate: 14.5%.
- Average house price: £58k.
- Monthly repayment: £650 (90% LTV, 25 year term).
- Average pre-tax income: £10k.
2024:
- Interest rate: 5.25%.
- Average house price: £282k.
- Monthly repayment: £1500 (90% LTV, 25 year term).
- Average pre-tax income: £35k.
So in 1989, an average mortgage was about 80% of an average gross income. In 2024, an average mortgage is about 50% of an average gross income.
I specifically chose 1989 because it was a year of high interest rates, but you can repeat the calculation for other years if you wish. I don't think the results will support your assertion.
The 2nd group can't "refinance" all the extra principal they owe.
In 1989 interest rates were at record highs and mortgage interest relief was still a thing. Despite interest rates hovering between 8-12% for the rest of the 1980s, mortgage repayments were consistently a much lower proportion of income.
In 2024 there's no interest relief and we're exiting a period of record low rates. The rise to 5.25% already puts us in a worse position than when rates were at 10%, 14.5% would disastrous.
It is worth looking at the mid-2000s numbers (post-MIRAS, but pre-crash) and comparing them to today's numbers. They're really not so different.
No argument on the relative leverage: 10% would be impossible and 15% would probably precipitate a revolution.