My wife and I have been waiting for this for a few years now. We live in a college town in the South and the prices here are fairly delusional. I imagine this will allow for some market correction and we’ll be able to get into a bigger home.
I sort of doubt it will correct very much. I assume a fair percentage of the homes are rentals. Landlords won't care to lower prices. They have a client based that's geographically constrained to the college and able to get easy money from the government.
None of the homes we'd be interested in are rentals. Our town presently has ~3k more rental bedrooms than it has college students so a lot of the rental properties are actually going on the market now. But again nothing we'd be interested in buying. But even with the ~3k additional rooms, developers are still building apartment complexes that are "student only". I'm not sure how they plan to fill them.
I'm also from a small southern college town and the housing market has been absolutely absurd for the past decade or so. It's always seemed like football fans looking for vacation homes and retirees were buoying it.
I believe they play a part here as well. My own home has increased in value ~$160k in 3 years. We’re ready to leave this town. The college kids and the retirees make it an absolute chore to live here.