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.
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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.”
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