Concerns over a potential U.S. housing market crash are rising, with 70% of consumers now expecting a collapse, according to a new survey by Clever Real Estate.
The survey also found that 32% of respondents are worried they will be unable to afford their housing costs soon due to economic instability. These concerns stem from prolonged high interest rates and skepticism about government policies.
Skepticism Toward Trump Administration’s Economic Policies
Respondents expressed strong doubts about President Donald Trump’s economic measures. About 72% believe that Trump’s tariff policies will harm the economy, and 81% are concerned about the broader effects of tariffs and ongoing trade conflicts.
This sentiment contrasts with Trump’s campaign promises to lower mortgage rates, stabilize prices, and reduce housing costs. Some experts noted that the administration’s trade policies have contributed to inflation, keeping interest rates high.
High Interest Rates Intensify Market Pressure
Joel Berner, chief economist at Realtor.com, said the current housing market conditions are unsettling for both buyers and sellers. He explained that the Trump administration’s policies are sustaining high interest rates, increasing psychological pressure on buyers.
Despite these fears, experts believe a full-scale housing market collapse is unlikely in the near term because demand remains strong. Berner added, “If home prices fall, many buyers who have been waiting on the sidelines are likely to enter the market, which would naturally support it.”
Consumers Divided on Buying and Selling Plans
About 54% of consumers believe now is the right time to buy, fearing further price increases. However, 32% said they are delaying major purchases. Among them, 22% of prospective buyers and 13% of prospective sellers reported pausing their plans.
Broader Economic Concerns Remain High
The survey revealed wider dissatisfaction with the government’s economic performance. About 63% of respondents said the government is not handling economic issues properly, and only 26% felt their financial situation had improved over the past six months. Just 34% expect improvement within the next six months.
Inflation concerns were also significant. About 74% expect inflation to worsen within the next 12 months, while only 39% support Trump’s approach to tackling inflation.
Fiscal Responsibility Favored but Policy Support Low
Although 78% of respondents favor cutting government spending, only 46% support the administration’s specific approach. Support for the Department of Government Efficiency (DOGE), led by Elon Musk, stood at 44%.
Concerns about cuts to government assistance programs were high. About 75% of respondents believe welfare reductions could directly affect them or their families, with 11% fearing they could face homelessness. Anxiety over changes to Social Security was particularly strong, with 85% expressing concern about potential benefit changes.
The survey highlights deep consumer unease over high interest rates, housing affordability, and broader economic stability, even as experts downplay the likelihood of an immediate market collapse.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
AND YOONJAE JUNG [jung.yoonjae@koreadaily.com]
