Asklemmy

We are in a bubble. Several bubbles, actually. One popping will likely trigger the others to pop. One of the reasons we are in a real estate bubble is due to housing being used as an investment by large corporations. There are many empty houses sitting around like a stock earning value for shareholders. We are also in an AI bubble. NVIDEA is NOT worth over a trillion dollars, but that's what the shares are priced at due to the bubble. People make the most money in a bubble riding it to the peak.

Let's pretend the AI bubble pops. Something happens, investors get spooked and start selling AI stocks off en-mass. The stock market corrects, and we enter a recession. This is normal and good, and to be expected. However, as company's stocks lose value, they divest themselves of assests to keep paying shareholders, and sell houses while they still have value. This causes the Real Estate bubble to pop. As prices go down more and more corporations try to quick sell before the houses value drops below what they were bought at. Boomers die, and their kids place old homes they can't afford to maintain on the market causing it to further collapse. Prices plummet to rock bottom. People who own multiple homes may also sell off the extras due to mortgages being owed for several times what the property is now worth. This has happened before and will happen again.

This takes years, but houses will become affordable again. Lots of people will watch the falling prices and try to time the bottom. They'll rent for another year or two and see the market get flooded with houses for sale. Some will buy too early and the prices will keep dropping. Eventually though things will get cheap enough that people will, en-mass start buying again and the prices will stabalize.