How COVID-19 Reshaped the U.S. Labor Market and Local Housing Demand in Michigan

Between February 2020 and June 2022, the U.S. labor market experienced the deepest

downturn on record followed by the fastest recovery in at least a century. The COVID-19

pandemic disrupted every corner of the economy, forcing shutdowns and triggering record job

losses across industries. Yet, in just two years, the labor market rebounded with remarkable

speed—reshaping employment trends, household behavior, and housing demand across the

nation, including right here in Fenton and Grand Blanc, Michigan.

Employment Recovery and Economic Resilience

At the start of 2020, the U.S. economy was thriving with historically low unemployment and

steady job growth. Then, the COVID-19 pandemic struck, leading to over 20 million jobs lost in

April 2020 alone. The unemployment rate soared to 14.8%, the highest since the Great

Depression.

Despite the initial shock, the rebound was swift. By mid-2022, total employment had returned

to pre-pandemic levels—an extraordinary turnaround. Locally, Michigan’s job market followed

a similar path, with strong rebounds in industries like construction, professional services, and

healthcare, all of which have supported continued growth in the Fenton and Grand Blanc

housing markets.

Uneven Recovery Across Industries

Certain sectors, such as leisure and hospitality, experienced the largest initial losses but have

since surpassed pre-pandemic employment levels. Other industries, like manufacturing, a

backbone of Michigan’s economy, continue to recover steadily but remain just shy of full pre-

pandemic employment.

Locally, Fenton and Grand Blanc have benefited from Michigan’s resilient construction industry.

Builders and remodelers across Genesee County have seen sustained demand as more families

seek homes that better fit post-pandemic lifestyles, from home offices to expanded outdoor

spaces.

From Job Market to Housing Market: A Shift in How and Where Americans Live

The pandemic not only reshaped the job market, it changed what people want from their

homes. As remote and hybrid work became common, more buyers began seeking larger

homes, bigger lots, and suburban settings, a trend that has boosted interest in communities like

Fenton and Grand Blanc.

Record-low interest rates in 2020 and 2021 fueled an unprecedented housing surge. Buyers

from across Michigan and neighboring states looked for homes for sale in Fenton, MI and Grand

Blanc homes with more space, driving prices higher and inventory lower. Even as rates rose in

2022 and 2023, the local housing market remained competitive due to limited supply and

ongoing demand.

Looking Ahead: Local Real Estate Outlook for 2025

With the Federal Reserve’s recent rate cuts pushing mortgage rates below 6.5%, real estate

professionals expect renewed activity heading into 2026. Many homebuyers in Fenton and

Grand Blanc who had been waiting for lower rates are now re-entering the market.

Builders are also responding to demand for new construction homes in Genesee County, as

homeowners with low fixed rates remain hesitant to sell. This creates opportunities for first-

time buyers and investors looking for newer inventory and long-term value.

If rates continue to ease, we could see a meaningful rebound in both home sales and housing

inventory across mid-Michigan, helping balance the market after several years of volatility.

Bottom Line

The post-COVID housing story is still unfolding, but one thing is clear: the link between the job

market and housing demand has never been stronger. As employment remains stable and

borrowing costs decline, Fenton and Grand Blanc’s real estate markets are positioned for

continued growth.

Whether you’re buying, selling, or investing, staying informed about both national trends and

local Michigan real estate insights can help you make smarter decisions in today’s evolving

market.