Termination of Unemployment Insurance Benefits May Affect Real Estate – RISMedia |

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COVID-related unemployment benefits will end on September 7, leaving more than 7 million Americans at a crossroads.

While the expansion has not yet been released to the public, concerns surrounding the Delta COVID option and the latest extension of the moratorium on eviction may signal a postponement soon.

But what happens when the deadline expires?

There are many uncertainties. As careers are awash with practice, an ultra-competitive environment can scare off those looking to change careers. However, at the minimum wage not enough to support the lease or home ownership for a large percentage of the population, and with companies losing their workforce due to unsafe or hazardous environments in a pandemic, those looking to return to the job market may be attracted to a “build your own way ”eg real estate.

“The overall impact on the real estate industry is unclear,” says Lawrence Yoon, chief economist at the National Association of REALTORS®. “Typically, the unemployed will seek new careers, and real estate has been an attractive choice for many. However, given the record high number of NAR members and fierce competition in the business environment, the emergence of new REALTORS® entering the industry could be offset by departures, which could result in the total number of REALTORS remaining roughly the same. ”

“Ending unemployment benefits will not have a significant impact on home sales and prices,” Yoon adds. “Those who receive these benefits will most likely not be hunting for a home purchase. Changes in mortgage rates and job creation will have the most significant impact on the housing market. ”

An area in which labor is urgently needed is construction. According to Associated General Contractors of America, in June construction work lagged behind pre-pandemic levels in 39 states.

The influx of jobs in the market can help reduce inventory shortages and general supply chain constraints that are currently slowing housing construction.

Liz Dominguez is Senior Online Editor at RISMedia. Send her your real estate news ideas to lizd@rismedia.com



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