Zillow projects that U.S. home prices will fall 1.7% between March 2025 and March 2026. Last month, Zillow economists still thought prices would rise this year.
Thats the aggregate for the whole US, -1.7%.
The US Housing bubble has popped.
Please be wary of particularly emotional and or delusional landlords as they go through the 5 stages of grief while processing this information.
I can’t help but notice that the area with the largest 1 year change in housing prices in Florida is right where the hurricanes hit last year…
idk. I think residential landlords will be fine. they will adjust rents to scrape as much from their vassals as possible while renegotiating favorable-ish terms on any debt they may have to creditors - banks dont want houses.
its families who who will be destroyed by this. auction sales will be underwater and people will be homeless. serious pain has come for the american population.
Why would house prices going down make people homeless?
perhaps “home insecure” is a better term. this market may turn many “home owners” into home renters.
those with unserviceable mortgages will lose them, increasing supply and putting further downward pressure on pricing right after a countrywide housing price bubble. these people are going to be massively underwater on their debt. there may be some people with the means to buy in a down market, but I think many homes will be snapped up at auction by corps for rental.
I am not sure how any of this results in an increase in wealth for average people. its likely going to end up as another massive wealth transfer upwards.
Many larger corporate landlords yes, will renegotiate, and yes, a whole lot of just normal homeowners will be fucked.
But also, a whole lot of smaller scale corpo landlords, and … basically private individuals who do house flipping or rent out their extra bedrooms or second or third houses for AirBnB… a lot of them are also fucked.
But, on the whole… there aren’t anywhere near as many ‘normal’ homeowners, who just own one home and live in it and are not also landlords of some kind, not after a decade + of this insane price bubble.
A whole lot of people who’ve been renting, been priced out?
This is good news for them.
As someone who’s been waiting for the housing bubble to pop for a while:
- I’m not sure this will help me, because big corporate landlords are probably gonna snap a lot of the stock up and perma-rent them
- I’m also pretty seriously looking into fucking off from this country permanently, and dollar crashing is going to have a problematic effect on me trying to buy something in the EU - assuming I can even get permanent residence established somewhere
While I feel for families that bought over the last few years that really didn’t have much choice and will be underwater shortly, my heart goes out to them. That said, my wife and I have been waiting for a market correction to come around and have been diligently saving for just such an occasion, so I’m cautiously optimistic.
It’s terrible that we have to go through this nonsense on the whole, especially considering that if PE stayed out of the housing market, there’s no reason every family couldn’t afford a house if firms weren’t driving prices up.
