With the price of real estate continuing to go up, there is a lot of speculation about a market crash. Since this happened in 2008, the assumption is that it will happen again. The part that many do not focus on is the fact that what happened in 2008 is entirely very different to what is happening now, which means the results will be entirely different as well.
The appreciation or need for bigger space played a big role in the housing boom, and this was caused by the COVID-19 pandemic, which was not a factor in 2008.
Right now, we are also in a very unique position because the baby boomers are retiring, and the millennials are ready to buy homes. These two groups comprise the biggest populations in the country. This is causing the biggest transfer of wealth in recent history. These are all factors that were also not true in 2008.
Currently the country is at a housing shortage, which means the supply is so low compared to the demand that a crash in prices is essentially impossible until the shortage is “fixed.” However, fixing a housing shortage is a decades long battle and is likely to continue for the near future.
The above instances have not changed and will not change anytime soon. People want to own homes, they want to live in bigger spaces, tens of millions of baby boomers will need to make changes when they retire and the tens of millions of millennials are growing up, having families and buying homes. And all of this is pushing up real estate prices.