A housing market crash happens when home values plummet due to a lack of demand for or an oversupply of homes. The factors leading to a housing market crash are varied, ranging from economic recessions to high mortgage rates that make buying a home widely unaffordable. A housing crash can have upsides for some home buyers, with lower prices making homes more affordable. For other buyers, however, a crash means losing built-up home equity and tighter finances that could lead to falling behind on mortgage pa ...