It’s no secret that the pandemic heralded a new age in working routine. Due to Covid restrictions, many employers switched to remote work and let their workforce work from home. IT, web development, engineering, data analysis, accounting, and copywriting are some of the top domains that initially embraced the concept of remote work. The question arises, though; has remote working affected the real estate market in the United States?
Remodeling your home to qualify as a remote-work-friendly environment can now be a profitable undertaking. Those home sellers who have implemented home office perks are at an advantage over the competition and double their chances to sell their property at higher returns. Local real estate agents can help you with real estate revamping ideas. Besides, they will guide home-seekers to your residence-for-sale searching for a home office.
Discover a new trend in home searches!
According to conservative estimates, analysts expect the number of people working from home to double in the next five years. Statistics on “home officers” unveil that approximately 4.7 million people already worked from home before the Coronavirus kicked in. The widespread interest for home offices opened an entirely new market to house-hunters almost inexistent before the pandemic. Most homebuyers no longer limit their search based on geographical restrictions. Remote work has enabled them to accomplish their workload virtually anywhere across the states.
A brand new set of conditions came into play, such as looking for a place with lower taxes and rents. Besides, why pay more for utilities and amenities in metropolitan areas? People discovered that they could enjoy small-town perks, such as more spacious Covid-free homes, lower crime rates, and nationally acknowledged schools. Explore hidden gems in the American countryside, smaller towns, and suburbs! Escaping congested urban and often polluted surroundings became a top priority. Therefore, they discovered a more viable, affordable, and attractive solution to live and work.
Remote work changed the definition of real estate.
According to new housing standards, a property must address various needs and demands. The most creative home-builders reinvented the very notion of a traditional house. Many home-seekers now prefer buying a property that has a separate built-in office. And, since remote workers do not leave their homes so often, they dream about owning an extensive backyard where they can chill out. They can turn these large spaces into amusement parks, colorful oases, or gardens.
Home offices opened a new chapter and quite refashioned how we consider homes. And as such, remote work altered the course of real estate transactions. Let’s just look at the housing requirements posed by the new generations! Millennials and Gen Z will choose diverse community areas equipped with modern and sustainable smart-home gadgets.
Those home sellers who meet these demands will most definitely hit the jackpot!
The top destinations for remote workers in the US
Remote-worker-friendly cities are not hard to come by. First and foremost, they should qualify for fast and efficient Wi-Fi connectivity. Then, the housing market should accommodate employees in a creative workspace. In addition, monthly rent shouldn’t be too high, while utilities must be cost-effective. Indeed, affordability applies to purchasing real estate too.
Let’s see the top ten ideal US cities in 2022 which provide remote workers with all these factors (based on Lawnstarter’s list.)
- Frisco, TX
- Naperville, IL
- Dallas, TX
- Arlington, TX
- Atlanta, GA
- Austin, TX
- Tampa, FL
- Plano, TX
- Raleigh, NC
- Cincinnati, OH
Check out the top five list of smaller US cities where you’re most likely to find remote work in the first semester of 2022 (based on LinkedIn’s Economic Graph team.)
- Bend, OR, where remote workers form about 41.8 percent of all job applicants.
- Asheville, NC, with 38.7 percent
- Wilmington, DE, with 35.9 percent
- Johnson City, TN, with 35.2 percent
- Eugene, OR, with 34.9 percent
Metropolitan areas also welcome remote workers. As you will notice, many remote work applicants favor Florida. Many cities in the Sunshine State also provide support for new businesses.
- Cape Coral, FL, 33.1 percent of all job applicants are remote workers
- Charleston, SC, with 31.6 percent
- Tampa Bay area, FL, with 29.6 percent
- Jacksonville, FL, with 29.4 percent
- Orlando, FL, with 29.2 percent
All these cities reported a flourishing real estate market as a direct consequence of the widespread of home offices.
The backlash to remote work
In their study compiled the previous year, the Society for Human Resource Management discovered that company executives and supervisors didn’t hold remote work in high regard. Upper management claimed to have perceived the fashionable home office trend negatively. As a result, they’d prefer their personnel to operate from an office setting. Furthermore, they openly confirmed that they could replace remote workers more quickly than onsite employees.
Nonetheless, the employees are winning this tug-of-war for the moment and in the upcoming two to three years. The critical labor shortage in the US grants them the upper hand.
Remote work dictates relocation trends.
What will happen if the wheel turns? Let’s consider the following scenario! Many tech companies have their headquarters in major American cities. At the onset of the pandemic, executives allowed the staff to work from home. And, they opted for more affordable and cost-effective suburbs of these metropolitan areas or neighboring small towns.
Relocation patterns and trends started to emerge, clearly signaling the near-collapse of huge cities real estate-wise. For example, many left the Big Apple to seek a more budget-friendly haven in New Jersey. Likewise, realtors in Raleigh, NC, reported that many San Francisco tech employees preferred their city to Frisco. And it worked in the short run.
How could outsourcing affect the housing market?
Seeing the efficiency of remote work, renowned US companies might consider outsourcing as the next logical economic step. India, China, Eastern Europe, etc., are waiting for promising job opportunities with open arms. They will provide a qualified labor force who work for a lower hourly rate. If they implement this policy, that would severely impact the US housing market too.
Which are the top three US cities with the highest percentage of remote workers? Bend, OR, Asheville, NC, and Wilmington, DE, are metro areas with excessive housing demands from remote employees. At the same time, the housing market in these cities is exposed chiefly to the devastating effects of future outsourcing.
The worst-case scenario: work re-distribution and cutbacks
What will happen to the US workforce when their employers decide to outsource the work? Undoubtedly, they will start selling their homes and move to larger cities featuring more career opportunities. Consequently, the housing market in the cities they leave behind will suffer a severe blow and will spiral downward price-wise.
Are substantial layoffs on the way? If work-redistribution becomes a reality, it will trigger a storm of discontent with shrinking wages, rising unemployment, and a housing crisis in the regions mentioned above. The real estate market in these cities is now taking advantage of the surge of home offices throughout America, yet later will struggle when companies outsource.
Conclusion
Though many leading US companies expressed profound discontent and disapproval of the remote work trend, home offices will stick around, at least for a while. Data scientists at Ladder predicted that approximately 25 percent of all US jobs would be undertaken from a home office by the end of 2022. Moreover, remote work wouldn’t stop expanding in 2023 either. Subsequently, the real estate market will continue benefitting from home offices and the US remote workforce’s willingness to buy or rent reasonably-priced homes. Let us stress that these are the most optimistic predictions represented by most data analysts.
On the other hand, remote work and the now booming housing market can come to a screeching halt if companies have a change of heart. Suppose they decide to outsource. Then massive layoffs will shake the US economy, affecting the real estate market. People will sell their homes and relocate to major cities. All we can do is hope for the best!
