If housing costs begin to drop and create a more stable market, there are plenty of buyers ready.
More than three-quarters (78%) of Americans in a recent Consumer Affairs survey said they think the housing market will “crash” in 2023. However, the majority (63%) said they will welcome a housing market crash, while 80% said they would like to see a housing correction. Additionally, 75% of consumers in the survey said they will buy a house if the market crashes and on average, they have saved nearly $30,000 to buy a property. Generation Z is the most eager for a crash; 84% said it would help them become first-time homebuyers. Despite these desires, Generation Z has less than $16,000 saved on average for a home.
However, there are some worries among current homeowners. More than 80% said they are concerned a housing market crash would mean they owe more on their home than its current worth. Yet, if homeowners were forced to sell their home due to a recession, 79% said they would downsize to a smaller property, while remaining a homeowner, while 21% would become renters. A quarter of baby boomers said they would sell and return to renting; more than half of boomers are anticipating a housing crisis in 2023.
Despite renters’ desires to buy, the continued rising cost of rent is also an obstacle. More than half of consumers (52%) do not think renters will be able to buy a property in the next year if the market doesn’t correct or crash. In the event of a crash, 72% think rental prices would stop rising so rapidly. Eighty-four percent of renters said they had, on average, a rent increase of $327 in the last year alone and 91% said they are concerned about high mortgage rates impacting their ability to buy a house.
Ultimately, a housing correction would lead to a more balanced market, leading buyers able to afford properties and owners to keep theirs if they wish to.
Topics
Member Discussion
Recent Articles
-
Pennsylvania Sees More Homes on the Market
- May 21, 2025
- 2 min. read
Listings were up 3.5% in April over March, and up 7% compared to the same time last year, according to a report prepared for the Pennsylvania Association of Realtors®.
-
Insurance Topics Highlighted During PAR Meetings
- May 20, 2025
- 4 min. read
The National Flood Insurance Program must be extended before Sept. 30, and NAR supports long-term reauthorization and reform. The NFIP has been extended 33 times since September 2017.
-
Pa. Primary Election: Vote Tomorrow!
- May 19, 2025
- 1 min. read
As Realtors®, one of the best ways to make change is by voting for Realtor®-friendly candidates that help us advocate for our businesses, our industry and the communities we serve.
Daily Emails
You’ll be the first to know about real estate trends and various legal happenings. Stay up-to-date by subscribing to JustListed.