Zinger Key Points
- Dublin, Ireland, where Twitter Europe is headquartered, is experiencing a housing crisis.
- Musk recently called on employees to go back to working in-office, which has caused backlash with European staff.
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Surviving employees at Twitter's European headquarters have an issue with new CEO Elon Musk’s recent demand that everyone return to the office; they need to find somewhere to live.
What Happened: According to Bloomberg, Dublin, where the software company maintains an office and once employed roughly 500 people, is currently experiencing a housing crisis brought on by a chronic shortage of new homes and a large outflow of private landlords.
Prices recently returned to a key area that once visited in 2007, shortly before the Celtic Tiger bubble that almost bankrupted the nation.
Musk's directive drew criticism on Twitter that it's difficult to just relocate to Dublin and begin working from the office. In a tweet, Musk stressed that workers may work from home for logistical, personal, or with manager approval.
Read also: Elon Musk Calls In (Remaining) Twitter Staff For Meetings After Mass Exodus, Office Closure
Roughly two-thirds of the staff at the Dublin office has quit following the exodus, but Musk’s contentious call for in-office work is highlighting a growing issue in Dublin’s housing market.
The city has prospered in recent years by offering prime locations for major corporations to establish expansive headquarters, but it could lose its edge if the housing market stays so restrictive.
Why It Matters: Bloomberg reports that some significant multinational corporations are taking matters into their own hands. A company connected to Goldman Sachs plans to construct over 1,000 flats on a parking lot for a shopping center in North West Dublin for 400 million euros ($415 million).
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Ikea’s investment division has pledged 100 million euros to help finance the construction of more than 250 social housing units.
Read also: Elon Musk's New Home Is In The 7th Priciest Housing Market In The Country
On the well-known listings website daft.ie as of November 18, there were just under 1,200 houses available to rent in all of Ireland. The amount was slightly over 700 on August 1, with the average listing rent increasing by 12.6% to 1,618 Euros.
Dublin has seen housing crises before, but this one is considerably different from the 2008 bust of the "Celtic Tiger."
The main issues back then were oversupply and excessive loans.
To read about the latest developments in the industry, check out Benzinga's real estate home page.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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