Rich Quick Leave it to the taxing authorities to define what constitutes being 'rich' It may be easier than you think to get rich quick. Let's take a fairly common situation in California. Then, over the years, they pay off their mortgage, raise a family and die at the end of the century. Their little house may be no more fancy than it ever was, and it is 20 or 30 years older than when they bought it, but it can now be worth half a million dollars or more in the inflated California housing market. Any hope that their children can inherit the house depends on those children coming up with hundreds of thousands of dollars to pay the estate taxes.
Chances are the only way they can get that kind of instant cash is by selling the house.
If the homeowners sold, then they would have to either pay similarly stratospheric prices to buy another house or pay astronomical rents for an apartment. But they fail to note that the population includes babies, toddlers, and teenagers, as well as young people just starting out their careers in their twenties. Households headed by young adults in their twenties have only a fraction of the net worth of households headed by people in their sixties. Older Americans may have been paying down their mortgages for years and now have some equity in their homes. The money in their pension plans has also grown and they may have saved some money in the bank, as well as having collected a few possessions with some value over the years.