Will the commercial real estate bust affect the broader economy like the residential real estate bust in 2008? Why or why not?
In: Economics
Probably not *quite* as bad. It’s more of a soft landing than a sudden shock like in 2008.
And I don’t think it will impact the broader economy all that much different. In 2008, people lost their homes and many couldn’t really engage in the economy–it was a full-blown recession.
Meanwhile, the commercial real estate bust is because of changes in work schedules. People are still working, they’re just not working in a physical office as often.
That said, recessions are funny like that. If we do hit a recession there might be a ripple effect that commercial real estate gets caught up in.
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