My old classmate, who had just graduated from a product design program, admitted over coffee in early 2023 that she had quietly stopped applying for jobs. Entry-level positions were disappearing, not because she was unskilled or unpersistent. Instead, she had begun bookmarking real estate listings.
What seemed strange at the time seems strangely familiar now. People who are anxious about how AI may change office life are increasingly turning to real estate as a kind of insurance rather than a vocation. This action is motivated by self-preservation rather than aspiration.
Real Estate and AI Layoffs: Key Insights Table
| Category | Insight |
|---|---|
| Primary Trend | Real estate is gaining momentum as a buffer against AI-related layoffs |
| Key Driver | Layoffs in white-collar and entry-level tech jobs triggered by AI |
| Notable Data Point | Entry-level tech job ads dropped from 24% in 2023 to 2.5% in 2024 |
| Strategic Focus Areas | Residential units, education/health hubs, industrial zones |
| Strong CRE Segments | Data centers and logistics real estate gaining investor interest |
| Industry Outlook | Real estate seen as a physical, income-generating, long-term asset |
| Potential Risk | AI may eventually impact real estate roles and tenant affordability |
| Reference Source |
Nearly 55,000 layoffs in the United States over the last two years have been directly linked to the use of AI. These weren’t short-term hiring freezes or seasonal reductions. They were rethinks of the structure. Instead than simply shrinking, companies like Amazon and Salesforce changed how they operated, frequently by removing jobs that could be done more effectively by algorithms.
Early-career employees have been disproportionately affected. Stanford’s investigation found that employment in AI-exposed industries fell by 13% among people between the ages of 22 and 25. This startling figure implies that a cohort may be redirected before they ever begin.
It should come as no surprise that this has changed the way that people see security. Young investors perceive stocks, especially tech-heavy portfolios, as becoming more volatile. In contrast, real estate—particularly physical, revenue-generating properties like duplexes or little apartment complexes—seems noticeably more grounded. It doesn’t vanish at a quarterly results call, but its worth may change.
In particular, residential property is sought for due to its twofold benefit: it generates money and offers shelter. It also has a reassuring impression of permanency, in contrast to many asset classes. It is touchable. Apply paint to it. Rent it. Make a sale. That tangibility is important for people who are seeing their digital career opportunities decrease.
It’s interesting to note that certain subsectors of commercial real estate, such as logistics warehouses and data centers, are increasingly emerging as popular investment destinations. The exact AI infrastructure that is eliminating jobs elsewhere is driving their expansion. Investors are handling this dilemma with more subtlety.
A speaker at a financial event I recently attended laid out two long-term wealth scenarios: one based on joint real estate investment and the other on standard tech ETFs. Although it expanded more slowly, the latter had a more consistent cash flow and less severe downturns. There was a moment when I was silently taking notes.
Investors are strategically concentrating on AI-resistant fields. Properties that are close to trade centers, hospitals, or universities are especially desirable. Work that requires practical experience, subtle judgment, and person-to-person care powers these zones. No AI is currently able to recreate that on a large scale.
This sentiment is helping companies with varied portfolios, such as AXA SA. Due to its substantial exposure to real estate, AXA’s stock performance has significantly improved. It is a subdued homage to the fluctuating winds. Many investors are now looking for insulation rather than just innovation.
However, this does not imply that technology will not impact the real estate market. AI tools are being progressively incorporated by the sector itself, automating lease procedures, improving tenant screening, and simplifying administrative workflows. Although it has ramifications for job functions within the sector, it is especially advantageous for cost reduction.
Property as an asset class nevertheless feels incredibly resilient in spite of these internal changes. Pressure is absorbed by it. Local economy are reflected in it. Additionally, it provides choices, including small-scale development, co-ownership, and short-term rentals. People need someplace to live, work, shop, and recover, even in difficult times.
That is the underlying wager: real estate is still, at least for the time being, a solid foundation as AI changes industries and the labor force. Although it doesn’t promise huge profits, it does provide control, which is becoming more and more scarce in this age of digital disruption.
Calculus is becoming more and more obvious for seniors who are graduating. Many people are rerouting their savings, family finances, or early earnings into real estate endeavors, with over 60% expressing concern about AI’s impact on their chosen industry. Instead of making wild guesses, they should anchor themselves.
People who value dependability over risk are the sluggish, steady current that runs beneath the waves of innovation in the larger economy. Houses rather than news stories. Instead of resumes, use rent checks. This inclination, which has been revived in an AI-dominated economy, is very similar to that of previous generations.
