3 million people are expected to lose their homes this year, according to an analysis of the real estate market.
“The most likely outcome for home values in California, New York, and Florida is that the value of their houses will fall by 30 percent or more over the next five years,” the analysis from real estate site RealtyTrac found.
The authors said the correction could be as severe as 50 percent or even as mild as a 15 percent decline.
Many homeowners will also see their real estate values drop.
While some of the market’s top properties will continue to perform well, other properties may see their value drop 30 to 50 percent.
With prices rising, the average home will be worth between $1.8 million and $2.5 million in 2018.
Even if all the losses occur, a home valued at $300,000 or more could see its value rise more than 40 percent over the course of five years.
RealtyTrace said it used data from data firm Zillow to calculate its index.
The real estate website used data on the number of homes sold and the number with prices that were $1,000 to $1 million, $1 to $2,500, and $3 million.
The index is based on the sales prices for the three top-rated markets in the US.
It is not clear if the average prices in these markets will drop by 30 to 30.5 percent over five years or whether prices will continue rising at the same rate.
In terms of housing affordability, the realty site said many Americans will likely need to pay higher rent.