A market expert who made a name for himself after correctly predicting a housing market reset in 2008 has issued a new warning.
Kyle Bass’ warning drew skepticism from his peers in 2008, but many are not so quick to dismiss his views today.
The notable 2008 forecast was profiled in Michael Lewis’ bestselling book “The Big Short.” The book was later adapted into a popular Hollywood film.
Last week, the famed investor shared on Clay Fink’s “The Investor’s” podcast that the housing market in three particular states would likely remain strong in the foreseeable future.
The states are Texas, Florida and Tennessee.
Kyle Bass is investing in Texas, Florida, Tennessee,
These states should benefit from migration to lower-cost states, a trend that's already happening.
Bass has been buying rural land to capitalize on demand for environmental credits.https://t.co/3JhVqCka0q
— tempkenalt (@tempkenalt) March 3, 2024
Bass shared that the good mix of “affordability” and opportunity made Texas, Florida and Tennessee good options for property investors.
“You have to move real companies where there’s affordability, where there’s expansive activity, where there are natural resources to accommodate those movements,” Bass said.
The property investment expert advised investors to stay away from the Northeast and West Coast, citing the high cost of living, high taxes and “mismanaged jurisdictions.”
Distinguishing those regions from the south, Bass highlighted the “pro-business, lower cost, lower or no tax jurisdictions” of Texas, Florida and Tennessee as prime investment opportunities.
“I want to be levered to that real estate. And I want to use a prudent amount of leverage,” Bass added.
Housing data appears to support Bass’ assertions. The New York Post reported:
“Recent demographic data further bolstered Bass’s statements. From 2022 to 2023, Florida — a particular hotspot since 2020 — witnessed a population surge of 365,000, while Texas boasted an increase of more than 473,000 residents. Tennessee also saw substantial growth, with its population swelling by 77,513 residents.”
The Post also noted that New York and California have witnessed an exodus of home and business owners — with more than “$1 trillion worth of assets has fled these states in the past three years alone.”
