Days Gone By — I dunno about you, but I love a good bidding war. There’s something inherently exciting about them. If you’ve ever participated in an auction, you probably understand what I mean.
For the last two years, we have seen bidding wars in both the labor market and the housing market. Employees have held the keys during employment negotiations, similar to the seller’s market we have lived through since the Summer of 2020.
As the Fed tightens, the growth spigot will be turned off in a lot of places. This eventually will loosen up the labor market. At the same time, inventories will rise for home sales.
It won’t happen overnight, but job seekers will no longer have all the leverage anymore, and we won’t see qualified candidates job-hopping left and right for better pay, benefits, and hybrid or WFH flexibility.
As mortgage rates climb, you’re probably not going to see as many homebuyers qualified for mortgages for homes above the median home price and in the jumbo category. Depending on the location, this will stifle some of the intense competition we have seen amongst you savages as you try and buy anything with running water and a place to sleep.
Finding housing has kinda sucked since 2020, but this too shall pass. Finding a flexible gig with great pay and benefits has been easy for knowledge workers and digital nomads, but, sadly, this too also shall pass.
If you’re a graduating college senior, you might be a lucky winner at the confluence of many of these factors. If you don’t already have one, it’ll be easy to find a job if you’ve got decent grades at a decent school. This is true for even non-targets.
The demand for rentals has already slowed. You will likely be a beneficiary of a cooler rental market wherever you end up working.
Your starting pay will be significantly higher than any other graduating class ever, somewhat thanks to inflation. Some of you with the right skills and employers will start with salaries in the low six figures.
Compared to other graduating classes in the last few decades, this doesn’t sound like a bad way to kick off your career, even if it might be at the start of a recession.
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