With recent news headlines about Meta, formerly known as Facebook, Twitter, and Amazon laying off thousands of workers in the tech industry, Realtor.com executive news editor Clare Trapasso poses the question in one of her latest articles: Will the housing market survive the cuts? High mortgage rates, inflation, and recession fears have already slowed the market, but could this new wave of layoffs hobble it ever further? Read on below.
“As people experience or read about job losses, they get concerned. They will then pull back on their willingness to rent a new apartment or buy a home,” says Robert Dietz, chief economist of the National Association of Home Builders. “In an extreme case, somebody may have to get roommates or move in with family.”
More than half of adults, 53%, delayed a big financial milestone because they were worried about the economy, according to a recent Bankrate.com report. About 25% put off home improvements and renovations, while about 15% delayed buying a home. (The report was based on a survey of nearly 2,500 adults taken in October.)
However, home sales will still happen, albeit at a lower level. Those with growing families will still trade up into larger homes, while empty nesters will continue to downsize. And people will still move for new jobs—they just might not be quite so mobile.
“Even during the Great Recession, people were still building and buying homes … but at reduced rates,” says Dietz.Read More