Americans fear another housing crash is near

It's been almost 18 years since the start of the last housing crisis and a majority of Americans believe one is on the horizon, a Clever Real Estate survey found.

That was among the findings of a broader-based pessimism in the early days of the Trump Administration, including 63% who believe it is not taking the right actions to address economic concerns.

Slightly more than a quarter said they were better off economically than they were six months ago, while one third expect to have their situation improve in the next six months.

This is leading 70% of the respondents to fear the U.S. is due for another housing market crash. Approximately 32% don't believe they will be able to afford their mortgage or rent because of the state of the economy.

There's a generational gap, with 41% of millennials stating they might not be able to make their housing payment this year, versus 26% of baby boomers. It is likely a result of the older generation having had more time to find a stable living situation and build their savings in order to deal with such contingencies, Clever commented.

A significant number cited inflation and the impact of the proposed tariffs to make the situation worse, with 42% expecting home prices to rise and 37% fearing higher rents as a result.

Among those worried about another housing crash, 77% are women and 60% are men, similar to the gender split on concerns about mortgage rates rising, 72% of women versus 56% of men. The survey found only 40% of respondents supported the President's handling of the housing market.

"Data shows he could potentially win some back to his side by addressing top concerns, such as expanding first-time home buyer assistance programs (which 79% of Americans support) or regulating the housing market to prevent another affordability crisis (75% support)," the survey report said.

Recent actions by Federal Housing Finance Agency Director Bill Pulte that curtailed fair housing including ending government-sponsored enterprise special purpose credit program participation likely did not help Trump's standing on this issue with respondents.

Among current homeowners, almost nine-in-10 are worried about the rising costs of home maintenance and repairs, with a similar number concerned about higher property taxes; extremely worried was the response for 47% and 49% of respondents respectively.

When asked which prices are you concerned will increase during 2025 because of tariffs or inflation, 56% said construction materials, 52% cited home insurance costs and 51% added property taxes.

In general, just less than half, 46% feel people are "underreacting" to the administration's activities potential impact on their finances, versus 30% who believe Americans are overreacting.

For this survey, Clever surveyed 1,000 people between March 5 and March 9.

Another study, this one from Resimpli of 1,200 prescreened people through Pollfish found almost three-quarter of respondents, 72%, said the trade war over tariffs between the U.S. and Canada will hurt the housing market in this country.

Slightly more than half thought the markets that would be most affected are near the northern border.

Almost 70% believe the dispute will decrease liquidity in the housing market, with 56% declaring housing affordability would be negatively impacted.

Just over 50% state the dispute will drive mortgage rates in the U.S.  higher, while one quarter said the buyer's ability to secure real estate financing would be significantly affected.

"Our findings suggest that the potential impact of U.S.-Canada trade tensions on the housing market could be more complex and far-reaching than initially anticipated," the online report said.

"The combination of expected supply chain disruptions, changing investor behavior, and shifting consumer sentiment points to potential challenges ahead for the U.S. housing market."