Does real estate have a class issue

We recently ran a poll on whether a lack of representation in class and socio-economic backgrounds needs to be addressed.

Our industry often talks about improving gender and ethnic diversity, which is something we truly believe in. However, we wanted to gauge whether organisations within the sector believed that the class and socio-economic representation gap should be addressed too.

Asking the question ‘Is there a class issue in real estate?’, we gave four options to choose from. The poll received 173 votes broken down as follows:

• Yes, it’s very prevalent – 65% of votes
• Yes, but it’s changing quickly – 14% of votes
• No, there’s no issue – 15% of votes
• Not thought about it before – 6% vote

While 173 votes only provide a snapshot, it still showed that 79% believe there is a class issue in real estate. Begging the question, why?

Below, we’ll explore how a divide is prevalent, why it should be addressed and how we can make a change.

Sadly, these findings show that nepotism, family connections and socio-economic backgrounds still play a key part in hiring for entry-level positions and beyond. Those with higher socio-economic statuses tend to be seen as more visible within the company, able to create stronger connections with leadership and therefore more privy to ‘deals’ and promotion opportunities.

As well as this, the real estate firms that took part in this research have a smaller proportion of staff from lower socio-economic backgrounds (27%) than leading accountancy firms, finance firms and the population of UK CEOs. Interestingly, the study also highlighted that those from lower socio-economic backgrounds may struggle to access and afford the training required to even get a start in the sector.

And those who do get involved at higher education or university level – which is much more socio-economically diverse than is represented in the sector itself – don’t have the time to attend evening events or networking opportunities, as they often have part-time jobs to supplement their income. Those from higher socio-economic backgrounds are more likely to be able to do so.

However, there is a light at the end of the tunnel, with some participants of the research noting the following: