By Jennifer ZahnMay 16, 2018 07:57:38The tech boom has been a boon for the real-estate industry, but the impact on the real economy may be more severe.
A new study by the National Association of Realtors finds that tech jobs were the biggest driver of the decline in sales and rental vacancy rates in the country.
In a recent report, the realty industry also cited rising costs as a major driver of a shrinking supply of housing, which has been blamed for pushing many Americans into renting.
The NAR found that the realtors association predicts tech-related job losses will reach 1.7 million jobs in 2018 and 1.4 million in 2019.
That is an 11% decline in the number of jobs and a 16% drop in rental vacancy rate.
It’s a major drop, and a significant one.
In a letter to Congress, the NAR said it would work with members of Congress to “reduce the impact of the growing shortage of rental housing, as well as address the impact that the boom in technology will have on housing markets.”
The letter said the shortage of tech jobs has driven up prices and rents, and the resulting impact on real estate is even greater.
For instance, a $1,000 apartment in a luxury building with four bedrooms and two bathrooms costs $2,000 more than it did 10 years ago, the letter said.
That is not the case with rental vacancy, which is projected to increase by 14% to 18% over the next three years, according to the NAM.
The association also said the rise in rents will be even worse.
The realty association also pointed to the impact the tech sector has had on the housing market.
According to NAR, the tech industry’s impact on rental vacancy is predicted to be $3.2 billion annually by 2027, and this will be $4.6 billion by 2037.
That’s a 17% increase over the past five years.
The industry is also expected to add 1.6 million new jobs by 2035, and that number will grow by about 30% by 2036, the association said.
The realty group said it is already seeing a “significant impact” on the rental market because of this growth.
The letter also said tech workers are leaving their jobs in droves, as employers are turning to them for the best jobs, which are often in the technology sector.
In fact, the number dropping out of tech employment is nearly double the number leaving it.
The loss of tech workers will be particularly devastating to the construction industry, which employs nearly 2 million people in the United States.
In its report, NAR predicted that a 20% decline by 2040 will result in a $3 billion loss to the economy.
The NAR’s report also noted that the number is likely to grow even faster if the boom continues.