- Rising mortgage rates are cooling the hot real-estate market, leading to widespread layoffs.
- Many of the layoffs have been at firms with offerings around mortgages and residential real estate.
- See all the major layoffs below, from Compass to Redfin.
Every segment of the real-estate industry, including proptech innovators that concoct new ways to buy and sell real estate and traditional mortgage brokers, is vulnerable to rising interest rates.
Deals that were once profitable for the industry and home purchases that had been affordable for everyday people suddenly don’t look so hot in the face of higher borrowing costs.
The recent interest-rate hikes and a looming recession have led to many layoffs in the real-estate world, which mirror waves underway elsewhere in the economy.
The downsizing began in the mortgage industry with Better’s Zoom layoffs at the end of last year. The abrupt move came amid expectations for a slowdown in 2022, and residential brokerages like Compass, Redfin, and Side soon followed suit as transaction volume skid, hurting revenue.
With signs of distress in the office market and among homebuilders, and more Federal Reserve rate hikes ahead, layoffs are spreading. They’ve reflected a sobering reality for the industry that just a year ago was rebounding from the initial pandemic shocks and benefiting from fast home-price appreciation, rent increases, and funding for proptechs.
Insider is keeping track of where job cuts are taking place in the residential and proptech sectors, including at companies that have wielded an ax more than once. The companies with layoffs are listed below in alphabetical order.
Do you know of other real estate tech or mortgage-related layoffs? Were you affected by them? email [email protected]