The Application Process

Many top business schools in the country have witnessed a significant shift in demand over the last eight years. Due in part to irresponsible banking practices, over one million middle-class families lost their homes during the 2008 financial crisis. Even though the economy has dramatically improved since the crisis, many recent MBA grads are wary of getting into banking for many reasons.
In the pre-recession world, banking careers were considered a traditional sector for graduating MBA students. Today, previously unconventional job markets are experiencing notable growth. One of those markets is real estate, which is beginning to draw in plenty of business students despite its potential risks.
According to Financial Time's recent analysis of the top ten business schools, the banking industry has dropped over 40 percent in popularity in just eight years. The London Business School and Harvard Business School have both reported drops of over 50 percent in the popularity of banking careers. Experts predict this negative trend will continue, especially as new MBA specialization programs gain desirability.
So where are all the MBA grads going to work, if not in banking? A few of the most sought after industries include real estate, sustainability, analytics, technology, and finance. Job prospects are a large determining factor for business students - many prefer to work for progressive, innovative, and collaborative companies.
Business schools have recognized this change in demand and have responded accordingly. In April 2015, Georgetown dedicated 10 million dollars to the construction of a new real estate center. NYU updated their real estate facilities in 2012, with the University of Miami following their lead in 2013.
The real estate boom was born from the financial crisis and a resulting strong buyer's market. Hundreds of thousands of empty homes were available to purchase at below rock-bottom prices. As the economy recovered, people began snatching up property with increasing momentum. MBA graduates are drawn to this market because of its resilience, growth, and lucrative potential.
There are a few obstacles that business students may face when transitioning into a real estate career. People skills are crucial - it is nearly impossible to succeed in this industry without them. Breaking into the field can be more complicated for newcomers when compared to traditional career paths. Additionally, there is the realistic danger of the housing bubble bursting again.
Even though housing lenders are no longer issuing reckless loans, there is no guarantee that the market will not crash again. In fact, experts predict a 70 percent chance that property values will drop over the next year. Business schools have prepared for the worst by limiting class sizes and offering job placement programs.
The potential for volatility has not stopped MBA graduates from flocking to this expanding market. While it is impossible to tell what the future will hold exactly, business students continue to gravitate towards real estate regardless of the risks. Perhaps after witnessing the financial crisis unfold around them, many career options seem equally risky, but at least pursuing a career in real estate will make them unique amongst their classmates.