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Meredith Whitney earned her nickname “Oracle of Wall Street” by predicting the 2008 financial crisis before it hit. Now, almost two decades later, she sees fresh problems brewing – this time, in the US housing market.
“The housing market is awash with existing home sales on track in 2025 to be the slowest in more than 25 years,” Whitney wrote in a piece for the Financial Times (1). “The next few years may not be much better.”
The problem is linked to demographic changes. Whitney reports that more than 54% of homes in the United States are owned by seniors — 10% more than in 2008. Most of them own their homes outright, which means they are mortgage free. According to real estate brokerage platform Redfin, 78% of seniors want to stay in their current home rather than downsize (2).
In an interview with Watchwatch earlier this year, Whitney said, “Either these people don’t have a mortgage, or a small mortgage, and the capital gains they have to take and the costs they need to move are prohibitive (3).”
See how this is affecting the boomers and America’s housing supply.
Whitney added that the potential tax bite from selling your home means baby boomers may not be as wealthy as they think.
After you sell your primary residence, the IRS allows you to deduct up to $250,000 from the sale price of the home (or $500,000 for joint filers) to reduce your capital gains liability (4). Because this limit was established in 1997, it is not as helpful now as it was when house prices were much lower.
Whitney isn’t the only one raising red flags.
Last September, the president of the Federal Reserve Jerome Powell said that the housing market is “partially frozen” with many homeowners reluctant to sell because they are locked in lower mortgage rates (5). These rates go back to the pandemic, which were between 0% and 0.25% according to Brookings (6).
The result? Persistently high prices combined with elevated interest rates, which can make home ownership more difficult than ever to achieve.
According to Realtor.com, the typical US home fetched roughly 46% less than what is recommended to afford a home of $439,950, which was the median list price for an American home as of July (7). In December, the median price of a house had dropped to $415,000, which means that prices have improved – but not by much (8).
Read More: Nearing retirement with no savings? Don’t panic, you are not alone. Here are 6 easy (and fast) ways to catch up
The rise in housing prices is not just about the lack of boomers willing to sell. They also reflect the steady progress of inflation over time.
When inflation rises, property values often rise as well, reflecting the higher costs of materials, labor and land. Meanwhile, rental income tends to increase, providing landlords with an income stream that adjusts to inflation.
As a result, real estate is often considered an inflation-proof investment. It has long been considered an option for those looking to hedge their portfolios against rising costs and stock market volatility.
But, as Whitney and Powell pointed out, the market is somewhat frozen and inaccessible.
While buying an entire home can feel out of reach due to factors from stubbornly high prices to high mortgage rates, there are other easier ways to invest in real estate.
You can tap into this market by investing in vacation home shares or rental properties through Arrived.
Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in vacation shares and rental properties, earning a passive income stream without any of the extra work required to own your own rental property.
To get started, simply browse their pre-vetted properties, each selected for projected property value appreciation and income generating potential. Once you select a property, you can start investing with as little as $100, potentially earning monthly dividends and benefiting from any appreciation in property value. Actual rates of return for properties may vary, but total historical returns for individual Arrived properties range between 6 and 10% annually.
Another way to invest in real estate is through First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio with commercial properties anchored in the grocery. Like Arrived, FNRP can help you avoid the responsibilities and headaches of being a landlord, but on a commercial scale.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands such as Whole Foods, Kroger and Walmart, which provide essential goods to their communities.
Thanks to triple net rents, accredited investors can invest in these properties without worrying about tenant costs cutting into their potential earnings. Simply answer a few questions — including how much you’d like to invest — to start browsing their full list of available properties.
If you are looking to hedge your investments against inflation, there are other assets beyond real estate worth considering. For example, gold has historically been seen as a robust store of value – and its price has reached new highs during 2025.
Unlike fiat currencies, the yellow metal cannot be printed at will by central banks. Nor is it tied to the fortunes of any one country or economy, making it a good safe haven asset when economic or geopolitical volatility strikes.
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has repeatedly emphasized the importance of gold in a resilient portfolio.
“Gold is the most solid fundamental investment,” Dalio wrote on X in October (8). He added, “gold is a uniquely good diversifier” and “has a place in most portfolios.”
If you want to add gold to your portfolio, one way to do it is by building your retirement fund with a gold IRA.
Goldco allows you to invest in gold and other precious metals in physical forms, while taking advantage of the significant tax advantages of investing in an IRA.
With a minimum purchase of $10,000, Goldco offers free shipping on all orders and access to a library of retirement resources. In addition, the company will match up to 10% of qualifying purchases in free silver.
If you are curious if this is the right investment to diversify your portfolio, you can download your free information guide to gold and silver today.
We rely only on verified sources and credible reporting from third parties. For details, see our ethics and editorial guidelines.
Financial Times (1); Redfin (2); MarketWatch (3); IRS (4); Federal Reserve (5); Brookings (6); Realtor.com (7), (8); @RayDalio (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.