The Risk of a Real Estate Crash in the U.S.
The mention of a real estate crash may bring back memories of the 2008 global financial crisis. Unfortunately, recent reports and studies suggest that the U.S. might be heading towards a similar scenario.
In December 2023, the real estate market experienced a significant drop in sales, reaching lows not seen since 1995. According to CNBC, home sales decreased by 6.2% compared to the same month in 2022.
U.S. Homes Becoming Unaffordable
This decline in sales is not surprising given the current state of the U.S. real estate sector. Redfin, a real estate firm, reported that the average American household would need to earn over $115,000 to afford an average American home.
Additionally, home prices have risen by 15% compared to the previous year and are approximately 50% higher than before the COVID-19 pandemic. The average U.S. salary is only half of what is necessary to purchase a house.
“Rich Dad” Kiyosaki Predicts a Crash
Robert Kiyosaki, an investor and author of “Rich Dad Poor Dad,” has been skeptical about the sustainability of the current financial system. He recently stated that the U.S. real estate market is a bubble that is on the verge of bursting.
Kiyosaki points to the crackdown on Airbnb apartments in New York City as evidence of an unsustainable oversupply of units in the market. However, he sees this impending collapse as an opportunity for investors to make lucrative investments at discounted prices.
Kiyosaki recommends silver, gold, and Bitcoin as hedges against this rising threat.
Hot Take: The U.S. Real Estate Market Faces Uncertainty
The recent decline in home sales and the unaffordability of housing in the U.S. raise concerns about a potential real estate crash. Reports indicate that the market is reminiscent of the conditions that led to the 2008 financial crisis.
Investor Robert Kiyosaki predicts an imminent crash and advises investors to view it as an opportunity rather than a crisis. He suggests considering alternative assets like silver, gold, and Bitcoin as hedges against the uncertain future of the real estate market.
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