How The Great Resignation Is Affecting Real Estate
Q: Gerald, I left my job last year to take another job that allowed me to be home with my kids. I have read that many people are quitting their current jobs or getting new jobs. How has this trend affected real estate? Margaret, Scotch Plains, NJ
A: The Great Resignation is a phrase coined to describe the recent phenomenon of record high numbers of people leaving their jobs during the COVID-19 pandemic. Some of the people who have left their jobs during the Great resignation worked in real estate and home construction. Home construction projects have seen big delays during the pandemic anyway because of supply chain disruptions which have resulted in longer waits to receive building materials and home appliances. Workforce departures will further delay home construction projects which may further exacerbate already low available housing inventory both for home buyers and renters. The great resignation, which some people are calling The Great Reset has also reduced demand for office space as more workers are demanding remote work options. Office vacancy rates in the US increased 50% during the pandemic from an average of 10% in 2019 to approximately 15% in 2021. Thanks for your question, Margaret.
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