Housing-Related Job Loss Stats

• More than 40,000 mortgage institution employees have lost their jobs since the start of 2007. (Source: Challenger, Gray & Christmas Inc)
• Since early 2006, 150,000 workers in the residential construction sector have been pink slipped. An estimated 500,000 undocumented Hispanic workers have also been subjected to job cuts. (Source: Deutsche Bank)
• California lost more than 7,800 construction jobs in July alone. (Source: Los Angeles Times)
• The National Association of Realtors is projecting a decline in membership rolls for the first time in a decade. An estimated 100,000 realtors are expected to switch careers. (Source: NAR)

From Boom to Bust

Mortgage brokers, real estate agents and construction workers are the latest casualties of the housing market debacle. And the pink slips are expected to continue.

Since the start of August alone, more than 21,000 workers in the mortgage lending industry have been 'laid off' or fired. Many of the losses occurred just last week as companies like Countrywide Financial, HSBC, Capitol One and SunTrust have struggled to find financial balance.

But those who loan the money aren't the only ones feeling the pinch. A whopping number of construction jobs have been lost as well now that residential building has slowed to a crawl.

According to a study by Deutsche Bank, 150,000 workers have been put out in the cold since early 2006. Of course, this figure does not include the estimated 500,000 undocumented Hispanic workers, who happen to make up 70 percent of the residential construction workforce.

If the employment figures in Deutsche Bank's study included the Hispanic workers and matched the reported 25 percent reduction in residential construction, the job loss would have affected more than 900,000 workers.

While the job cuts that have occurred in the financial and construction sectors are huge, and are bound to have a negative effect on the economy, they may be nothing compared to the downsizing that will happen among real estate agents.

During the housing boom, the number of realtors doubled from 716,000 in 1997 to 1.4 million in 2006. Now, according to the National Association of Realtors (NAR), membership rolls are expected to drop considerably. A projected 100,000 agents will be looking for work by the end of 2007.