The housing markets in Texas, Florida and Tennessee face pressure as homeowners with low mortgage rates are staying put and are reluctant to put their homes on the market at a time when borrowing costs for home loans are high, investor Kevin O'Leary told Newsweek. The U.S. Federal Reserve began hiking interest rates more than two years ago in response to rising inflation that at one point soared to four-decade highs.
People leaving those parts of the country are moving to places like Miami, Florida, and Austin, Texas, in search of a cheaper cost of living, which has put pressure on those markets by increasing demand for homes that in turn has pushed up prices.'If you were looking at a map of...where housing is particularly strong, it coincides or correlates with more attractive tax policy,' O'Leary said.