Is the housing crisis just the confluence between the Baby Boomer’s downsizing and the over zealous lending practices on Wall Street? That is the consensus of John Wasik at Bloomberg.com today. The 40 year run of spending by the Baby Boomer’s is almost over and as they downsize their lives for retirement, there are not enough Generation X families to take up the slack in housing.

So the McMansions and large homes are not going to have many occupants according to Wasik. And after reading the whole editorial, I think he is right. The housing bubble and the population bubble coincided at the beginning of the century and when they burst, the damage will be long lasting.

So go buy the home you will be comfortable living in and save your money. If Wasik is right, housing will not be your greatest investment for a long time.

Although we may not be headed for a 1930s-style Depression, there’s plenty of evidence to suggest that boomers are dumping their four- and five-bedroom suburban homes for two- and three- bedroom condominiums.

It’s also unlikely that the “Generation X,” born between 1965 and 1976 (or more derisively called “baby busters”), will bid up home prices. They are only 44 million strong, not as wealthy and even more in debt from college loans.

The baby boomers are reorganizing their finances after a rocky decade in stocks. They aren’t buying as many second homes and vacation properties in warmer climates. via  Bloomberg.com.

Related posts:

1. The Baby Boomer Generation Wants It All
2. Home Prices Increase In a Number of States in 2008
3. Sales Up, Prices Down For December 2008
4. How Washington’s Housing Rescue Plan is Hurting Housing Sales
5. Robert Shiller Says BUY BUY BUY!!!