Joshua Mawhorter, assistant editor of Mises.org, pens a great piece about inflation's role in generational conflict.
This generational conflict is evident in today's housing market where many in the younger generation struggle to generate enough fiat dollars to purchase homes owned by the older generation. While inflation has helped homeowners in the older generation through increased home prices, it has removed a rung from the younger generation trying to get on the homeownership ladder.
On the surface, it's tempting to blame homeowners in the older generation for higher home prices since they are the ones setting the asking price. However, this misdirects blame from the true villain behind inflated home prices: government intervention via inflation. Without the government inflating the money supply, demand for housing would be reduced and prices would adjust accordingly. While reduced inflation would help young buyers trying to purchase their first home, it would hurt homeowners that are wanting to sell their asset.
When searching for a solution to the conundrum we face in today's real estate market, the words of the wise economist Thomas Sowel ring true: “There are no solutions, only trade-offs”.
Unfortunately, many will turn to the government in an attempt to help those in the younger generation purchase their first home. Another Thomas Sowel quote comes to mind for those seeking a government solution: “Sometimes it seems as if there are more solutions than problems. On closer scrutiny, it turns out that many of today’s problems are a result of yesterday’s solutions.”
The best thing we can do to make housing "affordable" for the younger generation is to eliminate government solutions to a problem the market will resolve on its own, if left alone. While a free market solution will result in pain for some it will leave us with a housing market that operates on a solid foundation, unlike the market we currently have that benefits some at the expense of others.
https://mises.org/mises-wire/old-vs-young-and-rich-vs-poor-how-government-creates-class-conflict