San Francisco is now struggling with a mass exodus of tech workers due to the Covid-19 pandemic, with city leaders warning that this will have a severe economic impact.
RT’s Boom Bust discusses the issue with Jeffrey Tucker, Editorial Director for the American Institute for Economic Research to explore what the future of remote work could mean for the economy.
“The numerous researches that have been done since the pandemic lockdowns began shows that there’s been a decline year-over-year of apartment prices by about 25 percent,” said Boom Bust co-host Ben Swann.
He added that tech workers continued moving away from such places as San Francisco, where the cost of living is ungodly and they don’t have to physically be in an office.
Jeffrey Tucker expects a huge and dramatic shift for the entire real-estate sector, as occupancy rates of commercial properties and residential properties in major cities are far lower.
“I’m expecting a dramatic deflationary pressure to hit all big cities, such as New York and Chicago,” the economist said. “A lot of properties as we continue to reopen the economy over 2021 are going to be bought by large businesses, conglomerates, probably, a lot of foreign companies.”
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