The Echo From 2008

Aug 9, 2025

Ask episode

Chapters

Transcript

Episode notes

On today’s show we are looking at an echo from the Great Financial Crisis. There was collapse of a banking house of cards triggered a drop in lending liquidity which then precipitated a fall in real estate prices. There were several areas across the US that got caught up in that mess in a big way.

On today’s show we are looking at which areas of the country are currently experiencing negative equity and comparing them to counties that were similarly affected in the period from 2008-2012. In that time, the recovery only started in 2013. It took a full 8 years for prices to re-normalize in many of those areas.

Right now, there are a few areas in California, Florida, New York, Illinois, and Texas that are experiencing negative equity. Washington DC is also on the list, but in my opinion for different reasons.

Now I’m not here to tell you that we are experiencing a repeat of 2008. But I find it interesting that some of the same markets that experienced the most negative equity in 2008 are also the same ones experiencing negative equity today in 2025.

This is a time when you need to be particularly careful. There are people still quoting growth statistics for these areas that frankly in my estimation are no longer valid. Yes, there are national home builders planning large scale gated communities with thousands of homes in the future. But I can also tell you that these builders will not be building at the same pace in an environment where inventories are surging and equity is evaporating.

----------

**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)