If you share these concerns, now may be a good time to start preparing.And Wright isn’t the only one sounding alarms. “Rich Dad, Poor Dad” author Robert Kiyosaki has also warned that the “biggest crash in history” is beginning — adding that “residential real estate crashes” in this scenario as well.When asked how far prices would need to fall to restore balance, Wright didn’t mince words: “It's going to be near your 50% — and much greater in certain areas.”“I think we're going to correct all the way to a po ...

Market Outlook - The U.S. housing market is expected to undergo a significant correction, potentially starting as early as 2026, with a large historical price decline anticipated over several years [1][5][6] - Zillow reported that 53% of U.S. homes lost value over the past year, the highest share since 2012, with an average drawdown of 9.7% [2][3] Price and Income Discrepancy - The median sales price of a U.S. home reached $410,800 in Q2 2025, a 42% increase over the past decade, while the median household income is only $83,730, creating a significant gap [3][4] - Realtor.com estimates that a typical household now needs to earn approximately $118,530 annually to afford a median-priced home, highlighting the disconnect between home prices and household income [3][4] Investor Behavior - During the last housing crash, large investors intervened to buy homes, which halted the price decline; however, this time, it is argued that such intervention may not occur [4][5] - Treasury Secretary Scott Bessent has indicated that the housing market is already in a "recession" due to Federal Reserve policy, with warnings from various analysts about a potential severe downturn [7]

Core Insights - Economists do not foresee a housing market crash in 2025, with predictions indicating that supply will not outpace demand for homes [2][24] - Current job data supports a stable housing market, with unemployment remaining at 4.3% as of August 2025 [3] - Home prices are experiencing slight cooling, with a reported year-over-year decrease of 1.4% in July 2025, but overall national prices are expected to decline by 0.9% by the end of 2025 [4][21] Supply and Demand Dynamics - The housing supply is gradually increasing, but not at a rate that would lead to a crash; the current supply is just over nine months, compared to the 13 months seen before the 2008 crisis [5][6] - Demand remains strong, partly due to declining mortgage rates, with the average 30-year fixed-rate mortgage at 6.35% in mid-September 2025 [7] - The current market dynamics differ significantly from those leading to the 2007 crash, with limited supply, high home equity, and stringent mortgage lending guidelines in place [9][10] Economic Factors - Home equity is at record highs, with the average American holding over $300,000 in equity, which contrasts sharply with the low equity levels seen in 2007 [10][12] - Low mortgage delinquency rates and a strong job market contribute to a stable housing environment, reducing the likelihood of a crash [12] Market Observations - While a national housing crash is unlikely, local markets may experience price fluctuations, with some areas potentially seeing declines even as national trends remain stable [15] - Increased non-mortgage related costs, such as property insurance and taxes, could impact some households, but the overall housing shortage is expected to mitigate widespread crashes [14] Future Considerations - Economists suggest monitoring local market conditions, including population growth, job market trends, and home sales, to gauge potential risks [15] - A significant economic shock or a rapid rise in unemployment could signal a future housing market crash, but current forecasts do not indicate such risks [13][14]