• Despite a widespread return-to-office push, loneliness among workers remains high. KPMG survey results published Tuesday found that 81% of employees value friendships at work as “critically important,” and a majority would even prefer to earn less to work with friends than earn more without them.

While a massive return-to-office push promised to make collaboration and relationship building easier and more accessible, most workers still feel lonely at work. That’s largely due to technology use and a lack of support for employees, research shows.

Workers crave companionship so much, in fact, survey results published Tuesday from audit, tax, and advisory firm KPMG show 57% would choose a role with a salary 10% below market value to work with friends over a job with a salary 10% over market without close friendships.

This “friendship premium” effectively values workplace relationships at 20% of someone’s salary, according to KPMG.

Meanwhile, 45% of people reported feelings of loneliness in the workplace, up nearly double from KPMG’s Friends at Work report from last year. And 81% of workers consider having workplace relationships as “critically important.”

This year, KPMG surveyed 1,019 full-time employees about the relative importance of salary, friends at work, work-life balance, learning opportunities, company culture, and how technology shapes employee experiences.

KPMG’s decision to explore workplace friendships was driven by the growing recognition that human connection is essential to business success, Sandy Torchia, KPMG U.S. vice chair of talent and culture, told Fortune.

“Our [2024] survey revealed that workplace friendships are an undervalued solution for addressing issues such as loneliness, burnout and disengagement—challenges increasingly evident in today’s workforce,” she said. “Our [2025] survey indicates that these issues not only persist but are becoming even more prevalent.”

The value of friendships at work

Kelsey Szamet, a workplace attorney with Encino, Calif.-based Kingsley Szamet Employment Lawyers, told Fortune it’s no wonder some employees would choose lower pay to work with friends.

Based on her work with clients, “a warm organizational culture will often rank higher for employees compared to simple monetary pay,” Szamet said. “Working in an atmosphere of trust and friendship can lead to greater commitment and staying longer with one company even if salaries are not at the stratospheric levels for one’s expertise.”

Erin Eatough, cofounder and chief science officer at advisory firm Fractional Insights, told Fortune this trend reflects a larger redefinition of value at work.

“People are no longer just optimizing for income—they’re optimizing for meaning, growth, and connection,” said Eatough, who uses psychological science while consulting Fortune 500 leaders. She earned her Ph.D. in industrial-organizational psychology from the University of South Florida. 

“We see this in our diagnostics,” she continued. “Workers are increasingly seeking environments where they feel safe, connected, and respected. Friendship is often the most human expression of a culture that has gotten it right.”

A recent Fractional Insights survey also showed more than 50% of employees feel they have to “constantly look out for themselves at work.”

“That kind of chronic self-protection signals a breakdown of trust and belonging and it erodes motivation and innovation over time,” Eatough added. “Workplace friendships can act as a buffer against the loneliness epidemic.”

Meanwhile, workplace friendships often go beyond superficial connections. Friends can serve as support systems at important times like when an employee faces discrimination, harassment, or retaliation Szamet said. 

Generational breakdown and AI friendships

KPMG’s survey results found Gen Z values workplace friendships the most out of all groups. Two-thirds of Gen Z would choose a role with the friendship premium, followed by 58% for baby boomers, 57% of millennials, and 55% of Gen Xers.

While friendships are valuable across all generations, younger workers rely more heavily on work friends to navigate mental health and burnout, Torchia said. They’re also more likely to view their work friends as “social connectors” and “confidants,” she added. 

AI has also become a source of companionship—for better or for worse—for some workers. While 99% of workers reported they’re interested in an AI chatbot that could become a friend or trusted work companion, according to KPMG, 49% said the technology creates false connections and replaces deep conversations with superficial interactions. Torchia calls this the “great AI paradox.”

AI “can serve as a tool to help alleviate loneliness while also amplifying our hunger for authentic relationships,” she said. “The organizations winning are those leveraging emerging technology like AI to create more meaningful human interactions, not fewer.”

Eatough said the more we automate, the more precious and powerful human connections become.

“If we’re not careful, we risk designing sterile, extractive workplaces in pursuit of efficiency,” she said. But placing humans at the forefront of performance management, communication, and rewards can “create environments where both AI and authentic connection thrive side by side.”

This story was originally featured on Fortune.com

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• Mortgage rates have remained stubbornly high: hovering near 7%, well above the sub-3% rates during the pandemic. That makes homeownership increasingly unaffordable for many Americans, as home prices have risen over 50% since 2020.

During the pandemic, home buyers got accustomed to sub-3% mortgage rates, which made purchasing a house feel more achievable. But in the past couple of years, buyers have had no such luck.

In late 2023, mortgage rates peaked at 8%. While they’ve let up some, today’s 30-year fixed mortgage rate is 6.75%, according to Mortgage News Daily. Economists and real-estate groups have warned they don’t see that figure budging much in the near future. And to make matters worse, some have said the mortgage rate it would take to make homes feel affordable again isn’t achievable. 

On Tuesday, Zillow economic analyst Anushna Prakash reported mortgage rates would need to drop to 4.43% for a typical home to be affordable to an average buyer. But “that kind of a rate decline is currently unrealistic,” Prakash wrote. Meanwhile, not even a 0% interest rate would make a typical home affordable in New York, Los Angeles, Miami, San Francisco, San Diego, or San Jose, she added. 

Warren Buffett’s Berkshire Hathaway HomeServices also said in an early July report that mortgage rates are one of the main deterrents for both home buyers and sellers.

“Many homeowners are reluctant [to] put their homes on the market and give up the low mortgage rates they already have,” according to Berkshire Hathaway HomeServices. “To them, high price gains won’t mitigate their ability to pay more for another home at significantly higher interest rates.”

This issue is also referred to as golden handcuffs—or the locked-in mortgage rate effect. The idea is that current homeowners have no incentive to put their homes on the market, even if they want to move, because they’d forgo a much lower mortgage rate they had locked in years ago. 

This causes a litany of other problems in the housing market, namely inventory.

The number of unsold existing homes for sale rose 9% month-over-month in April, according to Berkshire Hathaway HomeServices, to 1.45 million; that’s equal to 4.4 months’ supply on hand at the current sales pace and the highest level in five years. That’s shown itself in more sellers delisting their properties after sitting on the market for longer than expected.

“Homes are sitting on the market nearly three weeks longer than last year,” Realtor.com Senior Economist Jake Krimmel recently told Fortune. “That’s a sign of sellers still anchored to pandemic-era prices even though the market is telling them otherwise.” 

That doesn’t mean there’s an influx of housing in the U.S.; in fact, we’re still short millions of units. It just means there aren’t enough people who can actually afford to buy a home.

The factors influencing housing affordability

Although inventory levels are increasing, home prices and mortgage rates continue to be a roadblock for potential home buyers. Mortgage rates have remained “stubbornly high,” Berkshire Hathaway HomeServices said, deterring new buyers from the market.

According to a Realtor.com report published Thursday, the typical home spent 58 days on the market in July, which is 7 days longer than the same time last year. 

Mortgage rates are certainly a factor among buyers when deciding to make an offer, and home prices are also up more than 50% since the onset of the pandemic, according to the U.S. Case-Shiller Home Price Index.

All the while, wages haven’t grown at the same pace as home appreciation, making buying a house feel even more unaffordable. And if nothing changes like mortgage rates, inventory, or wage growth, it’s likely the housing affordability crisis in the U.S. will persist, Alexandra Gupta, a real-estate broker with The Corcoran Group, told Fortune.

“Some first-time buyers are turning to long-term renting or even co-living models because the idea of owning a home has become so out of reach. Others are relying more on family support to get into the market,” Gupta said. “We’re seeing a reshaping of the housing ladder.”

The small glimmer of hope, though, is home price growth appears to be slowing, according to the Case-Shiller indices.

“With affordability still stretched and inventory constrained, national home prices are holding steady, but barely,” Nicholas Godec, head of fixed-income tradables and commodities at S&P Dow Jones Indices, said in a statement.

This story was originally featured on Fortune.com

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• The $645 million, 390-foot “Breakthrough” superyacht—widely linked to billionaire Bill Gates but reportedly never used by him—is up for sale. It’s the world’s first hydrogen fuel-cell superyacht and boasts luxurious amenities.

If you’re looking to cruise in style à la Microsoft co-founder Bill Gates, now might be your chance. 

The $645 million, 390-foot “Breakthrough” superyacht that’s long been linked to the billionaire and philanthropist is up for sale by yacht broker Edmiston. 

Jamie Edmiston, CEO of his namesake company, said in a statement it’s “the most extraordinary yacht ever built [and] the one that will change it all.”

Neither Gates nor Edmiston responded to requests for comment from Fortune, but it’s been widely reported across business and industry-specific publications the superyacht was commissioned by Gates just a few years ago. 

Dutch shipyard Feadship spent five years building “Breakthrough,” also known as “Project 821,” and it’s large enough to accommodate 43 crew members and 30 guests across 15 cabins. Forbes Australia reported in May 2024 the yacht also features a hospital, library, elevator, movie theatre, pool, hot tubs, steam room, gym, separate owners’ deck with two bedrooms, two bathrooms, two offices, and 14 slide-out balconies. 

“The big deal about Breakthrough is that it’s a modern engineering marvel, period,” Brad Hall, CEO of online yacht marketplace Yachtlify, told Fortune.

That’s because the “Breakthrough” is the world’s first hydrogen fuel-cell superyacht. And that’s what makes the superyacht particularly expensive, Heigo Paartalu, CEO of YachtWay, told Fortune.

“Breakthrough—true to its name—is a genuine breakthrough and milestone in innovation,” said Paartalu, who heads up what can be compared to the Zillow for yachts. “It’s the only privately owned vessel powered by hydrogen, and building one demands extreme precision, as any hydrogen leak could be catastrophic.”

Video footage courtesy YachtWay.com.

There are very few shipyards in the world capable of building a vessel like this, Paartalu explained, and he said “it’s no surprise” Feadship pulled it off, as it’s widely considered one of the best shipyards globally.

While most yacht owners prioritize maximum interior space, “Breakthrough” was primarily designed with the climate in mind, Paartalu said. Its engine room takes up significantly more space than traditional yacht propulsion systems. 

“It’s a pretty bold, uncompromising choice,” Paartalu added. Gates is also heavily involved in clean energy projects like Breakthrough Energy, which supports early-stage companies developing technologies to reduce greenhouse gas emissions.

And because superyacht builders are backed up with production schedules, anyone looking to buy the “Breakthrough” should be expected to pay a premium, Paartalu said, rather than waiting four-to-five years for a new build.

“Time is priceless at this level,” he said. “Many buyers prefer immediate gratification over a multi-year wait.”

What’s also interesting about the sale of “Breakthrough” is Gates reportedly never even stepped foot on the yacht, even though it’s up for sale and will be shown at the Monaco Yacht Show in September.  

While every superyacht is unique, Paartalu said, in this case, the new owner will be buying more than a boat. 

“You’re buying future-forward technology and a benchmark in innovation,” he said. “Add to that a pedigree few can match. And let’s be honest: How often can someone say, ‘I bought Bill Gates’ yacht?’”

This story was originally featured on Fortune.com

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• The housing market continues to struggle with high mortgage rates and home prices, driven by years of undersupply and slow home construction. Builders face higher costs and labor shortages, and home price growth is expected to slow this year as sellers pull homes off the market.

If you thought the housing market was bad enough: Buckle up. 

Mortgage rates are still nearly 7% and home prices are 55% higher than they were at the beginning of 2020, according to the Case-Shiller U.S. National Home Price Index. 

Housing inventory is slightly rising overall, but it’s not doing so by nearly enough, a May report by the National Association of Realtors and Realtor.com shows. And an analyst note published this week by Oxford Economics said the housing market will continue to deteriorate this year. 

“The supply of existing homes for sale is approaching pre-pandemic levels as a combination of high prices, elevated mortgage rates, and concerns over the labor market keep buyers sidelined,” Oxford Economics analyst Matthew Martin wrote in a note titled Recession monitor—real test for economy is just beginning. “The new-home market is also being challenged, with builders continuing to offer incentives including price cuts in an effort to move unsold inventory.”

Oxford Economics researchers also noted sellers will have less ability to pass along price increases. In other words, sellers will keep pulling their homes off the market if they can’t get a sale price they think they deserve. 

Meanwhile, homebuilders will continue to face higher costs due to tariffs and a reduced labor force because of fewer immigrants and more deportations, according to Oxford Economics. This, in turn, will slow housing starts—a.k.a. new construction—which won’t help inventory levels. 

“A long-standing lack of inventory has supported both high prices and sluggish sales in the market for existing homes,” Daiwa Capital Markets analysts Lawrence Werther and Brendan Stuart wrote in a note published Wednesday. “Substantial improvement is unlikely to materialize in the near term until mortgage rates (and/or prices) ease, thereby mitigating the current affordability challenges faced by potential buyers.”

Affordability is also hurting builders, who have had to continue offering incentives and price cuts. 

“Multiple years of undersupply are driving the record high home price. Home construction continues to lag population growth,” Lawrence Yun, chief economist for the National Association of Realtors, said in a statement. “This is holding back first-time homebuyers from entering the market.”

“We still don’t have an abundance of homes that are affordable to low- and moderate-income households, and the progress that we’ve seen is not happening everywhere,” Realtor.com chief economist Danielle Hale said in a statement. “It’s been concentrated in the Midwest and the South.”

However, that leads to one small silver lining predicted by Oxford Economics. Due to labor market concerns and weak demand (thanks to currently high home prices and mortgage rates), it predicts home price growth will slow and builders will limit new-home construction.  

“Slower home price growth may provide a floor beneath sales,” Martin wrote, but “household appetites for spending will largely hinge on the health of the labor market.”

Despite a struggling housing market, Oxford Economics predicts the U.S. will avoid a recession this year and the Federal Reserve will start to “cut rates aggressively” at the beginning of 2026. 

This story was originally featured on Fortune.com

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