The current housing market presents several challenges, particularly for younger generations looking to purchase homes. Meredith Whitney, CEO of Meredith Whitney Advisory Group, joins Morning Brief hosts Madison Mills and Brad Smith to discuss these issues and the economic effects of an imbalanced housing market.
"Over 60% of US homes are owned by households that are over 65, and they're not moving; they're aging in place," Whitney explains. "One of the reasons why they're aging in place is because, believe it or not, it's the most affordable option."
She notes the impact of this trend on younger buyers, particularly because of how their financial flexibility has influenced broader economic trends. Whitney uses the term "avocado toasters" to describe younger generations who are typically burdened by high housing costs and are left to navigate a market in which homeownership feels out of reach.
"One advantage that ... avocado toasters have had has been [that] you've had more disposable income," Whitney says. "You've been driving the bulk of spending because you've had more discretionary income unburdened by owning a home, and it's been more expensive to own a home than to rent."
Related Videos
While there is a "huge bulk" of housing inventory causing housing prices to stagnate, Whitney notes that younger buyers may not be "worse off" by renting rather than owning a home.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Josh Lynch