There are reasons people love to talk about real estate -we all need to live somewhere. Whether we buy or lease we simply need property. Covid 19 has shifted the conversation from our real estate wants and desires to our needs.
Of the list of human requirements shelter is a primary need equal to water, food, socialising, security, self-esteem and self-actualising. Humans have changed shelter into a myriad property styles but that does not detract from what property means to us and Covid has given us all a reality check.
Maslow Hierarchy of Needs
Being able to leave home as an adult and lease or buy a property is such a primary need it affects our ability to socialise, feel secure and even build self-esteem. Covid has highlighted that transacting in real estate allows people to:
- to start an adult life away from home;
- have pride in a home and suburb we choose to live in;
- build self-esteem through working and contributing to our communities and
- feel secure.
Before Covid, real estate was more transactional and investment centred. There was very little focus on the central purpose of property and its importance to other parts of our lives. Covid has exposed the connection to our mental health though the:
- stress that tenants, landlords, buyers and sellers are experiencing;
- government intervention to allay tenant and landlord fears;
- banks’ allowing a repayment moratorium;
- potential for distressed property sales and
- worry of negative economic outcomes.
Our ability to manage household finance impacts our self-esteem and not being able to achieve goals previously attained has serious impacts for future generations.
Source: Australian Bureau of Statistics, Household Impacts of COVID-19 Survey, May 2020
Real estate is a central part of our lives. It is where we function, where we congregate, where we entertain, where we shop, where we work and where we sleep. It provides employment, gives us security, impacts our environment, is beautiful or ugly, can be our success or failure and is absolutely an essential need.