Amid low inventory, rising prices, and economic uncertainty, a new national survey reveals that 70 percent of Americans are bracing for a housing market crash this year. Concerns are particularly strong in Illinois, where home sales remain stagnant and affordability fears are growing among homeowners and potential buyers alike.
Clever Real Estate’s latest data shows that one in three Americans worry they won’t be able to keep up with housing payments due to the shifting economic climate. Researcher Nick Pisano attributed the anxiety to lingering memories of the 2008 financial collapse. “Except for Gen-Z and younger homeowners, they all lived through the Great Recession and know what a housing crash looks like,” said Pisano. He added that inflation, federal policy changes, and tariffs are amplifying concerns.
In Illinois, low housing inventory continues to stall market activity. Illinois Realtors reported that home sales in February 2025 barely moved from the same period last year, with only 7,698 homes sold statewide—a number nearly identical to February 2024. However, prices are surging. The median home price jumped 6 percent year-over-year to $283,000, placing additional strain on buyers.
As uncertainty intensifies, Pisano noted a significant shift in buyer behavior. “We found that about one in four people who planned on buying a home this year are now delaying those plans,” he said. Economic caution is sidelining many would-be homeowners, despite historically low interest rates secured by existing owners.
Pisano emphasized that while fears are high, the fundamentals are stronger than in 2008. “There is a lot lower risk overall for a system-wide housing crash,” he explained, noting that today’s homeowners typically have more equity and lower mortgage rates.
Still, the broader U.S. market is cooling. According to Redfin, the average home took 47 days to sell in March 2025—the slowest pace for March since 2019. Experts blame slow demand and overpriced listings for the lag.
With inventory tight and consumer anxiety mounting, the housing market remains caught between a recovery and another potential downturn.
