Although President Donald Trump has, at various times, seemed to equate the importance and value of public health (and therefore human life), with the financial and economic hardship caused by the shutdown of the economy, the The reality is, quality leadership must balance these needs and ramifications. Despite the fact, public health experts, not just within this country, but around the world, are warning us that this pandemic will only get even more horrifying, unless/until the vast majority of people wear a mask. and use social media. distancing himself, the current occupant of the White House, sends mixed messages, supports conspiracy type theories, and endorses unproven/unproven treatments and medicines/drugs, such as the miracle cure. By refusing to focus, first, on public health needs/dangers, his approach not only puts additional lives etc at risk, but prolongs the strains on many businesses and the broader economy. With that in mind, this article will attempt, consider, review, and discuss, 7 the post-pandemic ramifications, the impact on real estate, and the overall economy/economic recovery.
1. Some areas benefit/others suffer: We have already witnessed significant turmoil in the residential real estate market. High-rise, denser locations are far less popular, and many suburbs have so far benefited. Is this an ongoing trend or just a short-term, knee-jerk reaction? In recent months, we have witnessed an explosion in the residential real estate market, in some regions, with limited available properties and rising prices. Many larger cities, on the other hand, have seen home prices drop. Also, today’s record low mortgage interest rates are fueling this market, but how long will it continue?
2. Some styles/types benefit/some don’t: Until now, commercial real estate has taken the the brunt of the beating, while some parts of the residential market have done well. We have seen more people, looking for houses, with more land, swimming pools, schools with smaller classes, etc. The denser neighborhoods have been much less popular!
3. Will remote/remote/virtual work become more prevalent? When the pandemic caused shutdowns, many companies moved much of their operations offsite and used a variety of virtual ways of working. While these have positive and negative aspects, will this become a more significant trend in the future?
Four. Mortgage interest rates: How long will the real estate market be supported and helped by historically low mortgage rates? While the Federal Reserve has announced plans to continue these low rates, for a considerable period of time, we have previously witnessed changing policies, due to changing needs and conditions.
5. Labor market/employment change: There is no doubt, we are experiencing a changing economy, labor market and, both, the general unemployment rate, as well as the type of employment. Although the president often brags about job growth, in recent months, instead of growth, he actually accounts for about 10 million jobs restored, out of more than 22 million lost. Many studies indicate a widening gap between the the haves and the have-nots! It appears that a significant percentage of businesses, which have closed, will never reopen and to date we have not seen a clear plan to address this, proactively, sooner rather than later!
6. Changing business environment/types: Which industries will benefit the most, and which could be the biggest losers? A few months ago, when the Governor of New York suggested to President Trump the need to address infrastructure improvements, the President seemed unwilling to seriously discuss one path: go ahead!
7. Will the post-pandemic mentality be similar to the post-depression?: Growing up, my parents often discussed something called depression mentality, which was being too careful, building a meaningful nest, a security blanket, and branching out, to protect oneself. After so many have experienced such an extreme degree of suffering from this pandemic, not only from a health perspective, but also from an economic one, how will this affect their attitudes, going forward?
The health and economic impacts of this pandemic have been horrific and concerning. It should show that we need leaders who follow the science, the data, and listen to the experts! Wake up America before it’s too late!
