• Rising mortgage rates cool the boiling real estate market, leading to widespread layoffs.
  • Many of the layoffs were at companies offering mortgage and residential real estate deals.
  • Check out all the major layoffs, from Compass to Redfin, below.

Every segment of the real estate industry, including proptech innovators who are cooking up new ways to buy and sell real estate and traditional mortgage brokers, is vulnerable to rising interest rates.

Transactions that were once profitable for industry and home purchases that were affordable for everyday people suddenly don’t seem so hot in the face of higher borrowing costs.

Recent interest rate hikes and a looming recession have led to widespread layoffs in the real estate world, mirroring waves underway elsewhere in the economy.

The downsizing began in the mortgage industry with the Better’s Zoom layoffs late last year. The abrupt move came amid expectations of a downturn in 2022, and residential brokers like Compass, Redfin and Side quickly followed suit as trading volume slipped, hurting revenue.

With signs of distress in the office market and among homebuilders, and more Federal Reserve rate hikes to come, the layoffs are spreading. They reflected a sobering reality for the industry which, just a year ago, was recovering from the initial pandemic shocks and benefiting from rapid property price appreciation, increases in rents and the proptech financing.

Insider tracks job cuts in the residential and proptech sectors, including at companies that have wielded the ax more than once. The licensed companies are listed below in alphabetical order.

Do you know of any other layoffs related to real estate technology or mortgages? Have you been affected by it? email [email protected]