Resources & Tips
to Help You Achieve the Dream of Homeownership
Thursday, May 29, 2025
Will a recession crash your home’s value?
If you’ve been watching the news lately, you’ve probably noticed a common theme:
Consumer confidence is dipping.
Tariffs are rising.
And a recession? Yeah, that word’s popping up a lot more.
Naturally, a lot of people are wondering:
“Is now a terrible time to buy or own a home?”
Some headlines would have you believe that a recession means a housing crash is coming. I recently saw one that warned home prices could plummet if the economy slows down.
But here’s what most of those stories won’t tell you...
What actually happens to home prices during a recession?
Let’s look at history — not headlines.
In the last 50+ years, the U.S. has gone through seven recessions. And in six out of those seven, home prices went up—not down.
The only time they fell?
2008.
And that drop wasn’t really about the recession. It was about something else entirely: way-too-loose mortgage lending. (Remember the “no income, no problem” loans?)
In other words: unless banks start handing out home loans like candy again, the odds of a major housing crash during a recession are low.
So what’s different during a recession?
It’s true—recessions often lead to job losses. Fewer people may qualify for a mortgage.
BUT (and this is important)… recessions also tend to bring lower interest rates.
Lower rates mean more people can afford homes, and that often offsets the dip in buyers caused by unemployment.
So you might actually see home values hold steady or even rise—especially in markets with tight inventory or high demand.
Bottom Line?
If a recession happens this year, it doesn’t automatically mean your home’s value is at risk.
The housing market is more resilient than people think.
So instead of reacting to fear-based headlines, it’s worth stepping back and looking at what history actually shows us.
If this helped ease your mind—or gave you some clarity—feel free to share it with a friend who’s been feeling stuck or overwhelmed.
And as always, if you’ve got questions about buying, selling, or just planning your next move, schedule a call with one of our Homebuying Coaches at www.affordthedream.com/book.
- Schedule a free consultation
- Apply online and get pre-approved today
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