The “Engine” of the U.S. Economy is Starting to Crack (It Will Affect Housing)

The “engine” of the U.S. economy is starting to crack—and real estate is already feeling the effects. Just last week, we touched on the hidden “recession” affecting many Americans. Today, we’ve got even more data to back up that analysis. Americans are at a breaking point, and the long-term trends are not looking good for spending, GDP, the economy, and real estate.

If you feel economic strain, you’re not alone. We just hit a level of low confidence that hasn’t been seen in 70 years. So, how is the economy still growing? How is GDP still rising? Why haven’t we seen a traditional recession with high unemployment, stock market declines, and a pause in consumer spending? It’s not a question of “why not,” but “when will it happen?”

If you invest in real estate, this will affect you. Home prices, rent prices, and activity in your local market will change. Dave is sharing the markets where investors are quickly leaving, the others seeing the most money pour in, the property types that still make sense in this market, and what to prepare for so your rentals weather any economic storm. 

In This Episode We Cover

New economic data showing just how worried the average American is about the economy

How consumer confidence problems can quickly seep into the housing market

What to do now to start preparing your rentals for a slow season ahead

The reasons why the average American is struggling so much in 2026

How is GDP still growing when consumer confidence is so low?

What (and where) investors are buying in 2026 (property types, markets, etc.)

And So Much More!

Links from the Show

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Dave's BiggerPockets Profile

On the Market 427 - The 2026 Recession Is Here

On the Market 429 - The Ultimate “Stress Test” for the Housing Market: Do We Pass in 2026?

Redfin: Investor Home Purchases Fall to Lowest Level Since 2020

Grab the Book, Recession-Proof Real Estate Investing

 

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