How coronavirus pandemic has led to real estate boom as wider economy struggles

'The pandemic caused everyone to reevaluate where they're being quarantined'

The coronavirus pandemic has caused the real estate market to skyrocket as Americans seek to change their living conditions, Compass Real Estate Vice President Mike Aubrey explained on the “Fox News Rundown” Wednesday.

Continue Reading Below

SUBSCRIBE AND DOWNLOAD THE FOX NEWS RUNDOWN

“The pandemic caused everyone to reevaluate where they're being quarantined,” Aubrey said. “You look at the fact that a home is no longer a home, the home is now a workplace as well. It's also a school. And I think that that really has gotten a lot of people in a position where they've decided to pull the trigger and change the condition that they live in.”

FLORIDA SEES NEARLY 1,000 PEOPLE MOVE THERE DAILY AS HIGH-TAX RESIDENTS SEEK SHELTER: REPORT

Aubrey said the largest buying group is millennials, since most are marrying and starting families, a phenomenon that is also contributing to the number of people leaving urban centers.

“They're looking at bedroom communities because they want better schools and they want sort of a different way of life,” he said. “And that was happening before COVID. So I think that they were beginning to sort of look at going into those spaces and then it was just exacerbated by COVID.”

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Aubrey pointed out that millennials will be replaced in cities by Baby Boomers looking to downsize, as well as members of Generation Z who are in their early-to-mid 20s,

Even though real estate is booming, Aubrey said the larger economy is reacting to renters and small business owners who are in a “bad way."

“I think that anyone who is taking advantage of rent abatement likely absolutely needs it,” he said. “Those people are in a bad way in terms of the money that they have. And I think that this certainly has a potential to be a real looming crisis for the economy and the country."

CLICK HERE TO READ MORE ON FOX BUSINESS

Subscribe and download The FOX News Rundown every day on your favorite podcast player.

The FOX News Rundown is a news-based daily morning podcast delivering a deep dive into the major and controversial stories of the day.