Social Class in Real Estate Employment
Despite growing efforts to diversify the workforce, socio-economic barriers continue to impact access to opportunities in real estate, often limiting entry and advancement for those from lower-income backgrounds. Here are some key challenges that need to be addressed:
The Prevalence of Unpaid Internships
According to The Social Mobility Foundation, around 100,000 internships occur each year in the UK, with 58% of these positions being unpaid. This trend excludes young people from lower-income backgrounds who cannot afford to work without pay, limiting their access to vital entry-level roles in competitive fields like real estate.
The Class Pay Gap
A recent CIPD study highlights a "class pay gap" where workers from working-class origins earn 17% less than their middle-class counterparts in similar roles. This gap extends beyond salary, affecting access to promotions, professional networks, and mentorship opportunities—factors essential for career progression in real estate, an industry where connections and industry exposure are key.
The Career Guidance Gap
Research from the Social Mobility Commission shows that only 1 in 8 children from low-income families receive career guidance related to high-value industries like real estate, compared to 1 in 3 from wealthier backgrounds. This gap limits awareness of career paths within real estate, such as property development, management, and surveying, and can lead to fewer young people from low-income backgrounds pursuing these fields.
Geographic Barriers
The Institute for Public Policy Research reports that many high-value real estate internships and jobs are concentrated in London and the South East, where 75% of real estate firms are headquartered. The high cost of living in these areas creates additional challenges for candidates from less affluent regions, who may lack the resources to relocate.
Could expanding paid internships, developing mentorship programs, and targeting recruitment beyond elite institutions help bridge the socio-economic gap in real estate? These strategies could open doors for diverse talent and create a more equitable pathway into the industry.
