The ‘Oracle of Wall Street’ says home prices need to fall 20% to end the ‘generational schism’

Published On Nov 18, 2024, 4:18 PM

Meredith Whitney, known as the 'Oracle of Wall Street,' argues that a significant drop in U.S. home prices—by approximately 20%—is necessary to alleviate the current housing disparity between older and younger generations. This gap is fueled by baby boomers who are reluctant to sell their homes, which keeps inventory low and prices high. She cites that such a price decline would revert prices to levels from three or four years ago, rather than indicating a housing crash. Whitney highlights that many homeowners are locked into low mortgage rates and are hesitant to sell, further restricting market activity.