Residential housing is often impacted by the ebbs and flows of employment markets. Successful sectors and regional markets attract human resources, unsuccessful ones either repel new talent, or lose existing talent.
As we lick our wounds from the “worst week ever,” hundreds of thousands of unemployed banking professionals in the West now ponder the possibility of a future-resurrected financial sector that could ever match its former glory. Martin Baker, for Arab Media Group’s 24/7, offers an insightful article on the mass exodus of British and European bankers flocking to near- and far-Eastern markets, “Financial Talent Migrating to the East.”
While it now seems like a quick-fix solution for those in search of a job, one can only wonder what this phenomenon may bring 5, or 10-years from now. Immediately, there will be a drop in housing demand in the local economies they leave behind (in urban markets already in hot water), and a spike in housing demand in expat-friendly markets such as Hong Kong, Singapore, and the UAE, in the rental sector initially, but in home sales as well. In the long term, will there be sufficient financial sector talent available in Western markets? Or is this just a short-term migration beginning? Has globalization triggered animal-like migratory patterns where, rather than seeking warmer weather, we rush to where there’s still money to be made?