Technically multiple bombs explode here and there. Here's how:
* Family bought 1 house (assets), big mortgage (cause it's expensive), live until retirement
* Parents sell the house (lost the assets) to either a wealthier family or investors to downgrade
* Parents potentially share the proceeding to the kids to support their Housing endeavor but Kids will be forced to buy something smaller (usually Condos) because detached is expensive and kids wage just starting from the bottom of the paygrade.
You just touched on another one of my big concerns – Condos.
I love condos, but the older generations have no idea what modern condo living is really like and what maintenance is required for these kinds of places. They get talked about like 'starter' homes for young people that can't afford a single family house and so often they nudge younger people to buy them and 'get on the ladder'.
Often they are TERRIBLE investments though. Property tax is relatively high in most cities, ongoing fees are huge, governance is normally terrible, and every now and then something major goes wrong and the current owners are left with huge extra bills.
'Getting on the ladder' in this way, along with student debt really cripples so many people into a life of debt payments while building very little wealth.
* Family bought 1 house (assets), big mortgage (cause it's expensive), live until retirement
* Parents sell the house (lost the assets) to either a wealthier family or investors to downgrade
* Parents potentially share the proceeding to the kids to support their Housing endeavor but Kids will be forced to buy something smaller (usually Condos) because detached is expensive and kids wage just starting from the bottom of the paygrade.
Long-term, middle class will erode.