Elon Musk warns house prices are set to plunge - and says commercial real estate is in meltdown
Brace for the intense pressure on commercial real estate to spread to house prices, Elon Musk says.
"Commercial real estate is melting down fast. Home values next," the tech billionaire tweeted.
Investors are worried about real estate in a period of higher interest rates and tighter lending.
Elon Musk is once again ringing the alarm on the US real-estate sector.
"Commercial real estate is melting down fast. Home values next," the Tesla and SpaceX chief tweeted on Monday.
The tech billionaire made the comment in response to a tweet by the Craft Ventures founder David Sacks, who said that a big chunk of commercial real-estate debt was due to mature soon.
Musk has previously warned that cracks could appear in property markets following turmoil in the banking sector. For example, the clean-energy pioneer said commercial real estate was "by far the most serious looming issue," and cautioned regional banks could experience a wave of defaults because of their huge exposure to the sector.