A comprehensive study from Kellogg Business School researchers Scott Baker (et al) shows that when households experience gains in cryptocurrency, they significantly increase spending on housing.
Source: Kellogg Insight Magazine
Notably:
- Over 16% of U.S. households have held crypto in the past decade, and their spending habits mirror equity investors: modest, calculated, not akin to lottery winners.
- For every $1 in crypto gains per capita at the county level, median home prices rose about 21 cents within six months.
This means crypto gains often directly translate into housing demand, especially in tech hub areas.
The Perfect Fall Storm: Crypto, Policy & Local Drivers Align
Crypto Rally + Institutional Endorsement
- Bitcoin and Ethereum are soaring—recent surges have lifted ETH past the $4,400 mark (ETH is up 50% since July 12th), propelled by favorable SEC signals and massive institutional buys.
- Recent activity by BlackRock was a key driver: data shows approximately 214,000 ETH (~$560 million) acquired since May 2025, plus $547 million ETH in mid-July.
Crypto Now Counts in Mortgage Applications
In June 2025, the FHFA ordered Fannie Mae and Freddie Mac to consider crypto holdings as assets in mortgage applications, even without conversion to cash.
Anticipated Rate Cuts
With the Fed predicted to cut rates in September, mortgage affordability will encourage buyers on the sidelines to purchase (potentially with new qualifying crypto assets)
AI-Fueled Job Growth in Tech Hubs
A booming AI sector located in tech hubs (e.g., New York, Silicon Valley, L.A.’s Silicon Beach) is creating high-income jobs and attracting tech workforces with exposure to RSUs and crypto portfolios
What This Means for the Fall Real Estate Market
With crypto wealth predicted to flow into the housing market, backed by favorable lending policies, macro affordability, robust tech job creation the result this fall could be fierce competition amongst buyers, particularly those with crypto backing.
To make the most of this market, real estate agents need to…
- Have a network of knowledgeable mortgage lenders who understand crypto portfolios
- Understand the legalities of closing in crypto, as this area is not mainstream in the United States
- Be able to verify assets and identify fraudulent schemes
- Anticipate a more competitive negotiating environment
The Takeaway
Real estate is poised to be the primary beneficiary of 2025’s crypto surge. With Bitcoin and Ethereum rallying, institutional confidence rising, mortgage standards evolving, and local market dynamics changing, we could see a crypto-powered homebuying wave this fall, especially in tech-driven cities like Los Angeles where the Stephanie Younger Group represents over 300 homebuyers and sellers every year.