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Meredith Whitney earned her “Oracle of Wall Street” nickname by predicting the 2008 financial crisis before it hit. Now, nearly two decades later, she sees fresh trouble brewing — this time, in the U.S. housing market.
“The housing market is gummed up with existing home sales on track in 2025 to be their 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 tied to demographic shifts. Whitney reports that over 54% of homes in the U.S. are owned by seniors — 10% more than in 2008. Most of them own their homes outright, meaning they’re mortgage-free. According to property brokerage platform Redfin, 78% of seniors want to remain in their current home rather than downsize (2).
In an interview with Marketwatch earlier this year, Whitney said, “Either these folks have no mortgage, or a small mortgage, and the capital gains that they have to take and the costs that are required to move are prohibitive (3).”
Here’s how this is affecting 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 selling your primary residence, the IRS allows you to deduct up to $250,000 from the home’s selling price (or $500,000 for joint filers) to reduce your capital gains liability (4). Given that this threshold was set in 1997, it’s not nearly as helpful now as it was when home prices were far lower.
Whitney is not the only one raising red flags.
Last September, Federal Reserve chair Jerome Powell said that the housing market is “in part frozen” with many homeowners reluctant to sell because they’re locked in at lower mortgage rates (5). These rates date 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 render homeownership harder than ever to achieve.
According to Realtor.com, the typical U.S. household earned roughly 46% less than what’s recommended to afford a $439,950 home, which was the median list price for an American home as of July (7). In December, the median price of a home had dropped to $415,000, meaning that prices had improved — but not by much (8).
Rising home prices aren’t just about the lack of boomers willing to sell. They also reflect the steady march of inflation over time.
When inflation goes up, property values often climb too, reflecting the higher costs of materials, labor and land. Meanwhile, rental income tends to rise, providing landlords with a revenue stream that adjusts with inflation.
As a result, real estate is often seen as an inflation-proof investment. It’s long been considered a go-to for those looking to hedge their portfolios against rising costs and stock market turmoil.
But, as Whitney and Powell have pointed out, the market is somewhat frozen and inaccessible.
While purchasing an entire home may feel out of reach due to factors from stubbornly high prices to elevated mortgage rates, there are other, easier ways to invest in real estate.
You can tap into this market by investing in shares of vacation homes or rental properties through Arrived.
Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without any of the extra work required to be a landlord of your own rental property.
To get started, simply browse through their pre-vetted properties, each selected for their projected property value appreciation and income-generating potential. Once you choose a property, you can start investing with as little as $100, potentially earning monthly dividends and benefiting from any appreciation to the property’s value. Actual return rates for properties may vary, but total historical returns for Arrived’s individual properties range between 6 to 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 grocery-anchored commercial properties. Like Arrived, FNRP can help you avoid the responsibilities and headaches of being a landlord, but on a commercial scale.
Thanks to triple net leases, accredited investors can invest in these properties without worrying about tenant costs cutting into their potential returns. Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
If you’re looking to hedge your investments against inflation, there are other assets beyond real estate worth considering. For instance, gold has historically been deemed a robust store of value — and its price has reached new all-time highs throughout 2025.
Unlike fiat currencies, the yellow metal can’t be printed at will by central banks. It’s also not tied to the fortunes of any single country or economy, making it a go-to safe haven asset when economic or geopolitical volatility hits.
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has repeatedly highlighted gold’s importance in a resilient portfolio.
“Gold is the most sound fundamental investment,” Dalio wrote on X in October (8). He added, “gold is a uniquely good diversifier” and “it has a place in most portfolios.”
If you want to add gold to your portfolio, one way to do so is by building up your retirement fund with a gold IRA.
Goldco allows you to invest in gold and other precious metals in physical forms, while leveraging the significant tax advantages of investing in an IRA.
