As housing costs keep climbing and wages stagnate, more and more people are struggling to afford rent or mortgage payments.
But what if it’s not just some people? What if it’s most people?
That’s the question a Reddit user recently asked: “Millions of people are just going to accept the fact that they’ll lose their homes and now be homeless?”
The replies showed that a lot of people are worried, frustrated, and trying to be realistic about the situation.
Not Everyone Gets Evicted
Historically, when mass defaults happen, the outcome isn’t that everyone ends up on the street.
During the Great Depression, for example, “by 1933, 40 to 50 percent of all home mortgages in the United States were in default,” according to an article on Encyclopedia.com.
Foreclosures spiked, housing values plummeted, and many moved in with relatives or left their state looking for work.
Shantytowns called “Hoovervilles” sprang up in cities across the country.
Many Reddit users pointed out that if the majority of people stopped paying, the entire system would be forced to adjust.
One person wrote: “If ‘majority’ can’t afford mortgage/rent there is zero incentive to repossess property.”
Banks, after all, don’t want to own empty homes they can’t sell.
More Corporate Ownership, Fewer Homeowners
Several users argued we’re already seeing a shift: corporations buying foreclosed homes and converting them to rentals.
A former real estate worker shared, “Every day they placed notices of foreclosure on houses…the banks just kept foreclosing and their portfolio of vacant properties just got bigger. Investors were having a heyday buying these places up.”
If more people default, large investment firms with cash reserves are expected to swoop in, buying homes at steep discounts and renting them out, often back to the people who lost them.
Living Together Again
Another common prediction is a return to multigenerational and shared housing.
One person noted, “Our culture shifts back to the idea of extended families…Your future is determined by the need to keep the family alive.”
Others said renters will double up, live in cars, or form unofficial communities.
Tent cities and RV clusters are already a growing trend in parts of the U.S. and Canada.
Prices Drop, But Not Right Away
Some people explained that landlords often keep rent prices high even with vacancies, hoping someone will eventually pay.
But eventually, if enough people can’t afford it, prices do fall.
“Landlords will choose to offer concessions first… If that doesn’t work, they will reduce asking rent,” one wrote.
Government May Intervene, But Not for Everyone
In 2008 and during the COVID-19 pandemic, banks and large corporations got assistance. Individual homeowners and renters? Not so much.
“Bailouts to banks, thoughts and prayers to homeowners,” one person wrote.
Others mentioned that some countries kept housing prices inflated by bailing out homeowners, which created other long-term problems.
If enough people stop paying, the government might freeze evictions, stretch out mortgage terms, or try to boost the economy with money policies.
But whether that helps the average person depends heavily on political will and public pressure.
Some Fear It Could Get Ugly
While many expect the system to bend before it breaks, not everyone is optimistic.
Some users predicted civil unrest, rising crime, or worse. “Eventually it leads to rebellion,” one wrote.
Another added, “People who can’t afford food…will become restless and riot through the streets.”
It’s Already Happening
Finally, several people noted that this isn’t a future scenario. It’s already here.
“There are already millions homeless in the USA,” one person said.
Others cited how major cities with high housing costs, New York, San Francisco, and Miami, already have large homeless populations, not just because of addiction or mental illness, but because people were simply priced out.
What happens when it’s not just a few? According to the people living through it, the system bends, breaks, or shifts, but it rarely protects the average person first.