Well that's just it. People don't need AI to live, and only AI investors stand to lose anything (and anyone who had a retirement that got invested in it).

But the real estate market, which has been growing exponentially faster since the 1990s (while median income has been linear) has created a bubble that will be broken by some market event, something where real estate investors sell. That's rare and it could only happen with something with a stupid sharp decline like you just described. I don't know if the AI bubble is big enough itself to do it.

But I don't think it will be residential real estate to collapse first, it will be commercial real estate. Once that happens, it's going to be a free fall and bring everything else with it.