The Covid-19 pandemic left America with a new standard of working. Many businesses and individuals not only started working remotely due to quarantine regulations, but continued to do so after quarantine was over. Now, experts in the real estate industry are discussing how the housing market is adapting to these work trends.
One of the biggest cultural shifts that came out of the pandemic was the way in which we work, more specifically, where we work. Remote working was a necessity during quarantine, but now many companies have opted to keep their employees at home, and more individuals are seeking remote work due to its rise in popularity.
The housing market has had to adapt to this new trend in work when it comes to influencing people to find a home. According to Norada, a real estate investment resource, it’s predicted that by 2025, 22% of Americans will spend a significant portion of their work day from home. This shift is also leading to new requirements for homes from prospective buyers.
The demand for larger homes has increased as more buyers are looking for a space with a separate area for them to work in. Things like extra bedrooms, office spaces, and large backyards are becoming requirements, as clients want a home that can have multiple purposes.
“Buyers look for homes that can serve dual purposes—functioning as an efficient workspace while remaining a comfortable residence,” wrote Marco Santarelli, an investor, author, and the founder of Norada Real Estate Investments.
“Many professionals are moving away from expensive urban centers to suburban and even rural areas with lower costs and more space. According to recent studies, housing markets in smaller towns and rural areas have seen a significant uptick in demand, as remote workers can live anywhere without the necessity of a daily commute.”
Norda reported that recent data has shown homes in urban, suburban, and rural areas have experienced significant price increases since the pandemic. These increases parallel the demand for larger homes and increase in those who work remotely.
Potential buyers are also looking to live in neighborhoods that offer recreational amenities like community spaces and access to natural landscapes such as parks and hiking trails. Affordability in different areas of the country have also led to an increase in rental applications. The midwest and South have been experiencing a major increase in applications after remote positions began to become more available.
Renters who were skeptical about buying their property, or any property, are now leaning more towards owning their own space due to remote work trends.
Santarelli wrote that “remote workers are primarily seeking higher-quality housing equipped with office infrastructure. Features such as fiber optic internet, home offices, and suitable outdoor spaces have become focal points for renters.’
“Affordability remains a crucial consideration. Rising home prices and interest rates can put a strain on buyers, prompting many to consider alternative financing options. As the market fluctuates, unconventional purchasing methods, such as co-buying among multiple families, are starting to trend.”
“Interested parties should consider working with real estate professionals who understand these alternatives,” Santarelli recommended.
Surging home prices, increasing mortgage/interest rates, and a lack of housing availability has been some of the biggest challenges prospective homeowners have been facing.
The commercial real estate industry has also had to shift the way they operate due to the rise of remote work. Many companies are re-evaluating their office space needs and becoming more flexible when it comes to where their employees work.
“This transition to flexible environments can lead to collaborative coworking spaces. Such spaces offer businesses the chance to maintain a presence in urban centers while allowing employees to choose from an array of flexible workspaces,” Santarelli said.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at eric.mastrota@thenationaldigest.com.
