According to @Redfin, the luxury housing market in the US has hit record highs, with only 7 out of the top 50 metros now offering luxury homes below $1 million, a sharp decline from 30 metros in 2020 (source: Redfin, June 2024). This surge in luxury real estate prices signals increased capital allocation to tangible assets, which may divert investment away from riskier assets like cryptocurrencies such as BTC and ETH. Crypto traders should monitor how continued high real estate valuations could influence liquidity and capital flows in the digital asset markets.

According to The Kobeissi Letter, a recent National Association of Home Builders analysis reveals that 94 million American households cannot afford a $400,000 home, while the median price of a new house is approximately $460,000. With 70% of US households unable to purchase median-priced homes, traditional real estate investment is becoming less accessible for average buyers (source: The Kobeissi Letter on Twitter, May 18, 2025). This severe affordability gap is driving increased interest in alternative investment assets, including cryptocurrencies, as traders and investors seek inflation hedges and store-of-value options. Crypto market participants should closely monitor housing market stress, as rising demand for digital assets could fuel further market volatility and new capital inflows.