Just need to fall 40% pic.twitter.com/L1nTzY4c4G
— Darth Powell (@VladTheInflator) July 3, 2025
U.S. Housing Market has reached its most unaffordable level in history 🚨🚨 pic.twitter.com/KqBbG5Dpmw
— Barchart (@Barchart) July 3, 2025
The market just dropped hard and anyone rushing to catch it is risking serious injury. The warning signs have been flashing for years but now they are impossible to ignore. The AI revolution is not coming it is here and it is relentlessly taking jobs across sectors. From entry-level gigs to complex roles automation and machine learning are reshaping the workforce on a massive scale.
Meanwhile demographic shifts are squeezing the economy from multiple angles. Boomers are passing away in record numbers shrinking the population that once fueled housing demand. Generation Z faces a world far different from their parents many do not want or cannot afford to have children and a significant share show little interest in traditional work structures. The labor force is changing and it is not tilting in favor of economic growth.
On top of that investors are preparing to exit. The next two to four years could see a net selling wave as confidence wanes. Builders made the classic mistake of overbuilding flooding the market with large homes that do not match the evolving needs. Immigrants with big families once a driver of housing demand are increasingly leaving due to changing policies and rising costs.
Property taxes are soaring adding another layer of pressure. It is a complex tangle of factors working against the housing market. Housing prices are likely to decline over multiple years. Patience will be crucial for anyone involved in real estate right now.
Investors should brace for a long correction fueled by structural changes beyond the usual economic cycles. The days of easy growth and rising home values are fading. Recognizing the depth and duration of these shifts offers the best chance to navigate what is coming with some degree of control.