While the second stimulus gave the US economy essential support, John Chang, SVP and director of research services from Marcus & Millichap says a third stimulus is even more important.
“If a third round of stimulus is passed, that’s good for real estate,” Chang said in a new video. “If a third round of stimulus is stalled, then we can expect the economy to soften and real estate with it.”
Chang says that the $2.2 trillion CARES Act passed in March was designed to reinforce the economy for four to six months. In the second quarter of 2020, the economy lost 22 million jobs and weekly unemployment claims hit 6.8 million in a single week at the end of March.
“The CARES Act was a critical safety net at the time and it did deliver an economic bounce in the third quarter,” Chang says. “Job losses were stemmed with weekly unemployment claims tapering down to the low 700,000 range and about 12 million jobs were recovered as businesses began to reopen in May and June.”