Companies are going to sell off a lot of their expensive office space in city centers. A lot of those office towers will be converted to apartments. Commercial real estate will take a huge hit.
Expensive cities like San Francisco and New York will take a huge hit. Why live there? For lots of jobs there is simply no reason to.
Even less expensive cities will see a lot of professionals move to the suburbs or even exurbs. The more daring will move to small towns or the countryside.
The tax base of a lot of big cities will collapse.
Long term this is potentially devastating to Democrats. Their voters are almost all city dwellers dependent on public transport and/or other government services. As people move out and rely less on government services, they’re probably going to be more independent and less willing to pay for them.
Agreed but those markets will give way last, because they are artificially-inflated at the top, which gives agents every chance to pluck over non-shrewd buyers, "Oh, the top house in this neighborhood just sold for 2.2M, so at 1.8M (for a $500,000 split-level), this house is a steal."
OTOH, an Indy Mac Letter to expose the bad paper in the commercial real estate market would likely bleed out into residential real estate and decapitate the top end of that market overnight. Then it might be possible to unwind both sectors and hand Xiden a new global depression. Schadenfreude!