How the Pandemic Has Altered the Real Estate Market

Government policy will play a crucial role in the future of the residential and commercial market.

Topics
Economics & Policy, Social Impact
Published

From the cities to the suburbs, the pandemic has sent a shockwave through the US real estate market.

According to finance professor Tomasz Piskorski, the future of both the residential and commercial market is dependent on government policy decisions in the coming months.

“When you try to predict what will happen to the real estate economy, you make your stand on the nature of the policy response,” he said.

Piskorski, the Edward G. Gordon Professor of Real Estate, compared the current crisis to the Great Recession, noting that many of the reforms put in place after the subprime crisis, as well as government relief efforts such as the CARES Act, have helped sustain some sectors of the market.

While those government interventions have been vital, the outlook for both residential and commercial real estate is also dependent on several unknown factors, such as the impact of unemployment and the role of mortgage forbearances.

Piskorski, however, offered one silver lining: 30-year fixed rate mortgage rates are at 2.88 percent, a historic low.

“It helps make housing affordable and it has stimulated a huge refinancing boom,” he said.

More Webinars

Professor Amit Khandelwal and Professor Jeffrey Sachs
Social Impact

Business That Creates a Sustainable Future

Which changes will be critical?

Gita Johar
Economics & Policy

What Globalization Means to Me

Gita Johar, the vice dean for Diversity, Equity, and Inclusion and the Meyer Feldberg Professor of Business, offers her take on globalization.

Economics & Policy, Social Impact, Entrepreneurship & Innovation

The Path to Decarbonizing Energy

Chazen Senior Scholar Geoffrey Heal speaks with Derek Brower of the Financial Times about the cost of transitioning to renewable energy.

Economics & Policy, Leadership, Healthcare

Pandemic, Partisanship, and the Economy Await a Biden Presidency

Professors Glenn Hubbard, Ray Horton, and Tano Santos discuss the state of political economy at the end of the Trump presidency.

Rise to the challenge.

The COVID-19 pandemic has changed the world of business, while bringing historical inequities and injustice into sharp relief.

Subscribe to Leading Through Change to receive the latest insights from Columbia Business School to help you navigate this unprecedented time.