The past year has been an interesting time in the real estate market. While the global COVID-19 pandemic meant drastic changes in the way a lot of people lived and worked, certain industries were hit significantly harder than others. In fact, some industries thrived in the new environment of people working and living at home – the real estate market being one significant winner as a result of the crisis.
Supported by super-low interest rates, the US housing market has remained afloat, with some areas of the housing market growing significantly in value. But what does that mean for real estate jobs? And how is the shift in working dynamic changed what it's like to work on the front lines of the real estate market? With rising home prices throughout the country, is compensation for professionals working in the real estate market more or less competitive than it was 12 months ago? These are all interesting questions to ask from the context of hiring and jobs in real estate.
Real Estate and the Remote Working Environment
It may come as a price to some but there are actually many different lines of work that one can pursue when working in the real estate industry. While most people will immediately think of a real estate agent when they think of real estate jobs, many other occupations exist in the field, for example, commercial real estate loan officer, compliance specialist, escrow officer, commercial leasing manager, and appraiser, to name a few.
So, while some jobs, like a real estate agent, haven't been affected by the dramatic shift to a remote working environment triggered by the global pandemic, other jobs that require in-person work, such as positions in real estate management and property management, have been dramatically affected by these new dynamics in work from home.
As a whole, with rising real estate prices and increasing investment in real estate property developments throughout the country, both in-person and remote jobs are seeing an increase in demand such the supply isn't keeping up. what this means at a macro level is the there is an increasingly competitive job market in real estate especially for companies looking to bring in the best talent available into their organizations.
“Some industries are inherently more attractive to work in than others for job seekers,” says Ryan Miller, Client Success Manager at Employment Boost – a leading resume writing, career coaching, and outplacement services provider. “While real estate jobs may not be as attractive to job seekers in a traditional economic environment, it's not a bad idea for job seekers in today's environment to consider transitioning into a role in real estate because a tightening talent pool likely means better compensation and increased job security.”
A Return to Growth Mindset in the Real Estate Industry
With the global pandemic came a level of uncertainty across organizations regardless of industry. For the past 12 months, it has been understandable that companies, and company leaders, haven't been confident about investing in growth strategies, as they battle uncertain economic conditions. This is especially true for the real estate industry, which is so heavily dependent on financing and is in a constant balancing act between renters and owners making payments on time.
However, comparing where the real estate jobs market was at the troughs of the market collapse in March and April of 2020, a trend in the real estate industry is a return to a growth mindset. Company executives have begun to look towards the future again, and invest in things like their human capital infrastructure, adding headcount to their teams, and other initiatives to drive growth. this bodes well for individuals looking for jobs in the real estate market.
“It does seem as though companies are slowly trying to get back into growth mode again,” says Dennis Theodorou, Managing Director at JMJ Phillip Executive Search – a boutique executive search firm specializing in the manufacturing, supply chain, and technology sectors. “We are seeing signs across many of our clients that demand for real estate professionals is rising. There has definitely been an uptick in hiring for real estate positions over the past eight months.”
At the end of the day, the real estate job market is one that is relatively steady when compared with other industries that were hit very hard by shifting dynamics triggered by the global health pandemic. The US housing market has been on a general uptrend for the last few years, and a tightening labor force in the real estate market means that companies are working harder than ever to attract, retain, and develop talent that they can see contributing to their field for the years to come.
Kristen Fowler, Practice Lead at Employment BOOST.
As Practice Lead for Clarke Caniff Strategic Search, Kristen leads cross-functional teams across sales, strategy, executive search, recruiting, and service delivery. Kristen holds a Master of Business Administration (MBA) from Walsh College, a bachelor’s degree from Michigan State University, as well as SHRM-SCP designation from the Society for Human Resource Management (SHRM).