On April 7, 2020, RE Journals hosted a webinar featuring renowned real estate economist, Dr. Mark Dotzour. An astonishing number of CRE professionals tuned in—nearly 4,000—to hear Dr. Dotzour’s insights on the impact that COVID-19 will have on the economy and the real estate industry.
What does this COVID-19 economic situation resemble?
According to Dr. Dotzour, the current situation resembles a combination of 9/11, the 2008 housing crash and World War II. This event is like 9/11 in that it came out of nowhere and there is a general fear of the unknown. However, unlike 9/11, this catastrophe is occurring in every city on earth right now. The 2008 recession had financial tremors and just last week, financial markets were shaking strongly. The Federal Reserve has tools to deploy right now. Just as during WWII, we need to mobilize the country, such as to procure and distribute medical supplies.
What will the recovery look like?
We were within two years of a recession before COVID-19 and some companies were struggling. With the onset of this, some companies are using this as basis to cut jobs. Dr. Dotzour anticipates a slow, jobless recovery. Segments that will particularly face challenges include the hotel, tourism, movie theater, oil and gas industries.
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