Originally Posted by
artemis
In NZ trusts are a major factor in home ownership, a factor often overlooked, probably because it is a bit nebulous. There are up to half a mill trusts in NZ - Law Commission's best guess as who really knows? (Answer, nobody.) Many if not most will contain one or more houses, usually including the family home. Trusts can of course sell their assets but it is not as simple as an individual owner selling. Partly because the settlor/s no longer own the properties and partly because the intention of trusts usually includes protecting assets for the offspring. Not to mention the implications of many trusts being poorly set up and/or managed.
And again, it is common for parents to own property which is rented to their children. (Tax benefits anyone?) The kids will inherit one day, so are effectively the owners anyway.
That is potentially a truckload of properties which may not end up on the market.
Downsizing is not inevitable either. Can hire a lot of gardener, cleaner and handyman for the cost of selling, buying and moving. And people with large houses often like them a lot. I live in a street of large houses - almost all have only 1 or 2 people living in them. Occasionally someone sells up and buys an apartment. Not often though. Some have put in private cable cars in order to stay in their homes (this is Wellington!).