Text b: demographics

housing demand – нехватка жилья

to consume – зд. pаскупать

housing – жилищный фонд

to bid (bid, bid) – принимать участие (в торгах); предлагать цену

influx – приток; наплыв

to come of age – достичь совершеннолетия

to relish – получать удовольствие, наслаждаться

beneficiary – бенефициар (получатель доходов от имущества, находящегося в доверительном управлении)

transfer – передача в собственность

to inherit – наследовать, получать в наследство

to enhance – повышать (качество)

on the surface – внешне, с внешней стороны

on careful examination – при внимательном рассмотрении (вопроса)

net – общий, конечный; чистый

most likely – вероятно

to take over – перенимать, наследовать

positive force – положительный фактор

Immigration has certainly been an important source of housing demand. The US huge wave of immigrants into the US from all over the world during the 1990s has consumed a large amount of housing. This could be identified as major cause of real estate inflation during that period of time as more and more people bid for a limited supply of housing. However, it is difficult to believe that this influx of immigration will continue far into the future. The children of the Baby Boom generation are now coming of age. They will leave their parents homes to form new households by the millions and comprise the bulk of future demand for real estate. This new generation has already been given unprecedented access to capital for purchasing homes. It is not unusual these days to have young people buying homes right after starting their first jobs out of college. Many young people, however, relish their freedom and choose to rent for long periods of time until they decide to settle down and have families. Since a large number of young adults

already own homes, future demand from this generation will be weaker because it is already partially spent.

The Baby Boom generation will be the beneficiaries of the greatest transfer of wealth in history as they inherit the assets of their parents. These assets will typically include the parents’ home. People who inherit significant wealth typically use some of that wealth to enhance their standard of living, which may mean upgrading to bigger and better homes. On the surface this would seem like a big boost for luxury home sales. But on careful examination, inheritance is actually a net negative for housing in general. Take this example of a typical family of elderly parents and two grown children. The parents will most likely own a home, as do the grown children who probably have families of their own. When the parents die, they will leave the home to the children along with whatever other assets remain. One of the children could take over the parents’ home or else it will be sold. Both children may decide to sell all of their homes and take the money to purchase bigger residences. Any way you look at it, one additional unit of housing will enter the market after the parents die. This is an increase in supply without a corresponding increase in demand, which is a net negative for the housing market.

The transfer of wealth to the next generation by inheritance always means a net increase in housing supply and will never be a positive force in the real estate market.

Ex.1 Give Russian equivalents:

a source of housing demand; the huge wave of immigrants; a major cause; will continue far into the future; the children of the Baby Boom generation; to give access to capital; right after starting their first jobs; to relish one’s freedom; until they decide to settle down and have families; partially; to inherit significant wealth; upgrading to bigger and better home; families of their own; one additional unit of housing will enter the market; an increase in supply without an increase in demand.

Ex.2 Give English equivalents:

ограниченный жилой фонд; создать свои семьи; в будущем составить большую часть спроса на недвижимость; сегодня нет ничего необычного в том, что; после окончания высшего учебного заведения; длительное время снимать жилье; повысить уровень жизни; на первый взгляд; большой стимул для продажи роскошных домов; недостаток (отрицательный фактор) для рынка жилья в целом; с какой стороны ни посмотреть на это; соответствующее увеличение спроса.

Ex.3 Answer the following questions:

1. Why did the huge wave of immigrants into the US during the 1990s cause real estate inflation?

2. Will this influx of immigration continue far into the future? Why?

3. What do people usually use the inherited wealth for?

4. Why is inheritance actually a net negative for the housing market in general?