‘Worse than 2008’: Housing expert Melody Wright says the US housing market could correct soon. How to protect yourself

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The 2008 lodging meltdown was brutal — location values collapsed, millions of Americans were pushed into foreclosure, and trillions successful household wealthiness evaporated. Now, lodging expert Melody Wright is informing that the adjacent downturn could beryllium adjacent worse.

In a November 2025 interrogation with Adam Taggart connected the Thoughtful Money podcast, Wright said the U.S. lodging marketplace is heading for a important correction (1).

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“I think, Adam, we’re going to close each the mode to a constituent wherever household median income matches the median location price. And truthful that is going to beryllium worse than 2008,” she said.

Wright noted that during the past crash, prices were connected their mode toward that equilibrium — wherever median incomes and median location values align — but “Wall Street came successful to bargain those,” efficaciously stopping the decline.

More recently, connected a February 2026 occurrence of the Ken McElroy Show, Wright went further, saying: “First-time location buyers person been priced retired by investors, and they can’t spend to determination from households (2).”

Wright believes the coming correction could instrumentality respective years to afloat play out, but she thinks the downturn could statesman arsenic aboriginal arsenic this year.

“I deliberation the outpouring is going to beryllium precise telling,” she told McElroy, adding that adjacent year, “you’re going to spot much and much distressed properties travel to market.”

And she’s not the lone 1 sounding the alarms

Rich Dad, Poor Dad writer Robert Kiyosaki has warned that the “biggest clang successful history” is already opening — adding that it goes beyond the banal marketplace and volition thrust “residential existent property crashes” arsenic good (3).

If Kiyosaki’s to beryllium believed, things are looking dire.

But there’s bully news: adjacent with these warnings, there’s inactive clip to prepare. Here’s a look astatine immoderate of the reasons wherefore experts are sounding the alarm, and what you tin bash to support yourself.

One crushed for the correction could beryllium the striking disconnect betwixt location prices and household income.

According to Federal Reserve data, the median merchantability terms of a U.S. location reached $405,300 successful Q4 2025 — a 34% leap implicit the past decennary (4). To spend a median-priced home, HSH Associates estimates a emblematic household present needs to gain astir $106,730 per twelvemonth (5).