In recent months, the headlines have been dominated by a singular force: Artificial Intelligence. From viral threads predicting the total collapse of the white-collar workforce to sensationalist claims of a world without work, the narrative has shifted from excitement to a form of digital existential dread.
We’ve seen this play out in the markets. Recent viral predictions—such as those from Matt Shumer suggesting AI will automate entire industries overnight—have triggered significant volatility. Major equity indices have felt the tremors, and the software sector, in particular, has been hit hard as investors question the “terminal value” of companies built on code that AI can now write for free. However, more balanced counter-arguments are emerging; The Kobeissi Letter recently noted that despite this ‘doom’ narrative, macroeconomic data and employment remain at record strength.
At Housemartin, we are fully on board with the idea that AI is a revolutionary force. However, we believe much of the current hysteria is exactly that: sensationalism designed for hits. To understand the future of the property market, we need to look past the “Bits” and focus on the “Atoms.”
The Lessons of History: We Have Been Here Before
The fear that technology will “steal all the jobs” is as old as the steam engine. History shows a consistent pattern: a new technology arrives, doomsayers predict mass poverty, and yet, humans adapt, and employment reaches new highs.
- The Industrial Revolution: The Luddites smashed power looms, fearing they would never work again. Instead, the textile industry exploded, and millions of new roles were created in manufacturing, logistics, and retail.
- The Telephone: Critics feared the automated switchboard would end employment for operators; instead, it fueled a global commerce boom that required more workers than ever.
- The Internet: In the 1990s, many predicted the “death of the high street” and the end of the traditional office. While the internet certainly changed how we work, it created millions of jobs in sectors we couldn’t have imagined in 1990—from UX designers to social media managers. (For a trip down memory lane, look at this 1995 Newsweek article predicting the internet would be a flop).
In every instance, the “skeuomorphic” error occurs: people assume new technology will just do the old things faster. In reality, new technology creates entirely new categories of human endeavor.
Why AI Isn’t the End of the Workforce
As discussed in a recent Macro Hive podcast featuring James van Geelen, the idea of mass unemployment ignores several key realities:
- AI Needs Humans: The “frontier” models (like OpenAI and Claude) require massive amounts of human-labeled data to remain accurate. Far from firing everyone, tech companies are hiring “armies” of humans to architect and maintain this new infrastructure.
- AI is Digital, Not Physical: While “Generative AI” (like ChatGPT) is incredible at answering questions, writing code, or summarizing reports, it lacks “General Intelligence.” This means it cannot perform the high-touch, physical tasks that sustain our world—such as nursing, complex construction, or the hands-on oversight required in high-end property management. These “physical” sectors remain protected from digital automation.
- The Productivity Boost: By removing the “drudgery” of data-crunching, AI allows humans to move into higher-value, higher-paid roles. History suggests that when productivity goes up, profitability follows, and when companies are profitable, they hire.
From ‘Bits’ back to ‘Atoms’
So, what does this have to do with the property market?
We are seeing a profound shift in investor sentiment. As the digital world (Bits) becomes increasingly commoditised—where software, code, and digital content are produced at near-zero marginal cost—the value of the physical world (Atoms) is skyrocketing.
This is why we see “old world” assets like gold, copper, and value stocks rallying, while software developers and “pure-play” digital firms face headwinds. Property is the ultimate “Atoms” asset. In a world where AI makes life more efficient and increases overall wealth through productivity, that wealth has to go somewhere. Historically, it flows into tangible assets. As routine tasks are automated, the value of place—where we live, where we socialise, and where we experience the physical world—becomes even more significant.
The Housemartin Perspective: A Balanced Future
No one can predict the exact path of the next decade. However, our belief is that the “net impact” of AI will be a significant positive for the economy.
While the “Bits” in our pockets get smarter and cheaper, the “Atoms” that make up our homes and cities remain finite and essential. We don’t see a world of mass unemployment; we see a world where humans, empowered by better tools, have more capital to invest in the physical world.
Conclusion: Technology changes the way we live, but it doesn’t change where we live. As we navigate this transition, we remain confident that the most reliable “moat” an investor can have is a stake in the physical world. In the long run, the intelligence may be artificial, but the value of property remains very real.
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