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People have been saying the stock market would crash when boomers start to retire for years. They base that on the idea that people will suddenly sell their equities and put all their money in fixed incomes for safety.

But that is a far cry from the real world. Motley Fool routinely advises people to plan to be retired for 30 yrs or more. Inflation is the main concern. You need to be in equities, as much as you can tolerate, to hope to keep up with rising costs. Moving all to bonds would be disaster--especially while interest rates are so low. Most do increase their bond allocation, but 100% bonds is only for the very well fixed.

Sure the real estate market will have to adapt as boomers downsize. There will be new growth in retirement communities of various types. The need for new home construction could moderate, but I would be surprised to see housing prices fall as a result. Older homes will be torn down. Healthy new family formation will continue to buy up ones of appropriate size and price and yes they will continue to move up to nicer, larger homes when they have the equity.
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