The Great Recession 2.0? Experts Weigh In On The Possibility Of A Housing Market Crash If The AI Bubble Bursts
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AI stocks have been all over the map this year, reaching major highs before swinging low and steadily climbing back up again. This volatility has drawn concern from investors and has left many wondering what will happen to their home values if the AI bubble bursts.
Michael Burry, the hedge fund manager who rose to fame after predicting the 2008 housing market crash, expressed his concerns that major tech companies are overvaluing themselves on X last week. He followed up that post with another, featuring a picture of actor Christian Bale playing him in "The Big Short" and the caption "Me then, me now. Oh well. It worked out. It will work out."
Burry's posts hit a nerve with many Americans who still see every major swing in the stock market as an indicator of the next Great Recession.
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Homeownership As A Primary Source Of Wealth
Despite the fact that a growing number of Americans are investing in the stock market, homeownership remains the bedrock of Americans' wealth.
There were an estimated 86.2 million homeowners in Q2 2025, according to Redfin. Those homeowners have a median net worth of $369,200, the most recent Federal Reserve Survey of Consumer Finance found.
In contrast, there are just 46.4 renter households, with a median net worth of just $10,400, the Federal Reserve says.
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Additionally, while an estimated 62% of Americans own stocks, according to a Gallup poll, that ownership is concentrated in the country's highest-earning households. Among households with annual incomes above $100,000, 9 in 10 are stock owners, while just 28% of households with incomes below $50,000 own stock.
For millions of families, that home equity is the most significant source of wealth they'll ever have, Realtor.com says.
The Great Recession ‘Would Not Repeat Itself'
The bulk of Americans' wealth may be tied up in housing, but economists tell Realtor.com that homeowners are in a stronger position today than they were during the Great Recession.
"The typical homeowner today—and the housing market overall—is still well-positioned to withstand a correction without it turning into a crisis," Realtor.com Senior Economist Jake Krimmel said.
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