Will the Coronavirus Pandemic Impact the Real Estate Market In Major Cities?

Author:
Publish date:
Video Duration:
2:29

New York has the second-highest amount of cases in the world, while the United States has the highest amount of cases.

So, with that said, how could the coronavirus impact the real estate prices in major cities?

Sallie Krawcheck, CEO of Ellevest, joined TheStreet to weigh in on what she thinks could happen to the real estate market post-pandemic.

Watch the video above for more.

And watch the full interview with Krawcheck here: How to Handle Market Volatility, Manage Personal Finances During the Coronavirus Pandemic

Video Transcript:

KATHERINE ROSS:
That's a really good point, and in a weird way kind of piggybacks off of something that I want to touch on, which is real estate because we're seeing a lot. This coronavirus is going to impact a lot. It could impact the way that we approach paid parental leave. It could impact the way that we approach cities since we're seeing New York, for example, actually surpass Italy if you're using Johns Hopkins' numbers in the number of cases worldwide. So I'm wondering, do you think that this will cause people to rethink living in cities and maybe impact the real estate sector?

SALLIE KRAWCHEK:
Well, it's interesting because you and I were talking and you're in your apartment in the East Village, and you're paying a lot for that apartment.

KATHERINE ROSS:
Yeah.

SALLIE KRAWCHEK:
And if that East Village apartment, I don't know if you have brothers or sisters, but a lot more than your sister's probably paying in my hometown of Charleston, South Carolina.

KATHERINE ROSS:
That's exactly where my sister lives.

SALLIE KRAWCHEK:
She is? Oh my gosh! How about that? That's crazy! That's where my family is! So, okay, so when you compare the amount of rent or the amount of the mortgage payment, the reason you are paying so much more for so much less space is because your East Village apartment comes with New York City. That's the park. And if it no longer comes with New York city, why in the world would you stay in New York city? And so I do I think it could really go either way. If we don't have a V shape recovery then why would I stay in New York and pay all this when my favorite restaurant unfortunately closed, when the wine bar closed, when my friends didn't come back from where they were during the coronavirus? And so let me have more space if we're all going to go to work remotely.

SALLIE KRAWCHEK:
But I could see it rebound the other way, which is, I don't know about you, but I am going out every frigging night when this is over. If there is a place to go, I will be on every plane, I will be in every wine bar, I will be in every restaurant. I am just kicking myself for things I didn't do before we got into this. So I think we can make that argument either way and I think what's really going to matter here is the shape of the recovery coming out of it, whether it's V or U or, God forbid, L.

Catch Up on the Latest Videos on TheStreet!

Related Videos