If you're into real estate investing. This video is for you. Prepare for a meltdown in the housing market in the coming year. A pandemic-induced property
bubble reached its pinnacle by the end of 2021, and the industry is now preparing for the
biggest decline since the financial meltdown. Strangely, the news press is avoiding the topic and
ignoring the reality that expensive costs have driven many potential customers away from the
market.
Many well-known figures in the financial sector have been warning that the housing bubble
would burst in the New Year as a result of the almost 50% increase in property prices since
2020 and the more than doubled mortgage interest rates. These experts are confident that
aggressive rate increases by the Federal Reserve would result in a sharp decrease in consumer
spending, triggering a broad economic slump and a surge of layoffs.
Home values may drop by at least 50%, according to analysts, and there will be worse suffering
than during the subprime housing meltdown of 2008. The reasons for this disaster are many, but
for the time being, we'll focus on three leading factors. Let’s examine these factors one by one.
Number One
One of the main factors that could lead to a housing market crash is the influx of investors. More
homes than ever before are owned by people who don't live in them. Between 20 and 30 million
single-family homes in America are owned by investors, according to CoreLogic. This
represents 25% of all single-family dwellings in the nation. We had more individuals living as
principal residents in the home during the 2008 housing meltdown than we have now.
With new apartment construction reaching a 50-year high, 2023 will be the biggest year ever for
the completion of new apartments. Apartment developers saw a 20% increase in rent in 2021
and went all-in.
Markets are dominated by investors in places like Charlotte, Atlanta, Phoenix, Tampa, and
Vegas, where they own 50% of the properties in some zip codes.
So what does all of that mean?
A record amount of rental inventory is about to flood the market. More competition between
investors can cause rents to drop and profits to decline. This may make it more challenging for
landlords to recoup their investment and may result in "fire sales" where properties are suddenly
sold for far less than they are worth. Home price pressure from this may cause the market to
implode as a whole.
The second contributing factor to the home market crisis is the worldwide stock market sell-off.
We all know that the United States is facing a demographic challenge as the baby boomer
generation approaches retirement age. The majority of their wealth is currently concentrated in
their stock portfolios and home equity, and at the same time, their bond holdings have also been
severely damaged

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