Media365
Growing public anxiety over artificial intelligence-driven job loss, especially in technology and other white-collar sectors, has weighed on housing sentiment in the US and India.
Yet data remains insufficient to quantify the direct impact of AI-related job fears on China’s sluggish home-buying sentiment, though analysts expect such concerns to make households more cautious about long-term housing purchase decisions.
China’s rapid AI adoption to boost automation and productivity had implications for labour markets, according to analysts.
There was lower employment demand for areas that faced automation, and entry-level workers might face a period of disruption as the labour market adjusted and AI matured, said Vishrut Rana, senior economist at S&P Global Ratings.
“Under evolving economic conditions, households increase preference for more liquid savings over more illiquid housing assets,” Rana said. “Over a longer horizon, labour markets will stabilise around technology and underlying housing preferences will play a significant role as households choose between lifestyle spending and housing.”
