Mortgage rates are once again rising, causing grief for many would-be homeowners. Meredith Whitney — dubbed the “Oracle of Wall Street” for predicting 2008’s Great Financial Crisis — previously sat down with Yahoo Finance to explain what she called the “Silver Tsunami”: how baby boomers aging closer to retirement age will seek to downsize their current living situation, ultimately freeing up a large volume of housing inventory.
Meredith Whitney Advisory Group CEO Meredith Whitney joins Yahoo Finance again to give further insight into how the housing market is in a transitional phase and which regions will see the brunt of that transition.
Whitney gives historical context and outlines the economics behind why people are moving, and to where:
“Over the last 60 years, it’s been a coastal Sun Belt revolution and I think what I believe, or I saw, over ten years ago was that people are going to start moving based on state dynamics in terms of better cost of living. No income tax dates. And you’ve seen that. So Texas, Tennessee, the Carolinas, Nevada, Utah — those have all been the strong states and the weaker states have seen out-migration. That’s California, New York, Pennsylvania, New Jersey, Illinois. And so what you see, out-migration jobs have already gone so companies have relocated. Texas is the state with the most Fortune 500 companies. That wasn’t the case ten years ago.”
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor’s note: This article was written by Nicholas Jacobino
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