Alicia Farley | January 20, 2022
Real Estate 101
If there is one thing we can all glean from the pandemic, it is that remote work, or working from home, has significantly changed the landscape of employment. The pandemic has caused a fundamental shift in the way people approach their work ethic, from going fully remote to companies implementing hybrid methods.
One of the most interesting effects of the work-from-home movement is visible in the U.S. housing market, which has been red hot for almost two years with no real signs of stopping anytime soon. With increasing work flexibility, people realize they no longer have to worry about a commute and can now spend more time at home with their families.
This realization has led to mass migration from cities to the suburbs. People are changing how they live in the wake of remote employment, with many seeking larger homes and more space.
The suburbs have gained a substantial amount of new residents throughout the past year, with some of the biggest cities in the nation (San Francisco, New York City, Chicago, Los Angeles, etc.) losing the most residents amid the pandemic. But why? What is it that Americans are finding so appealing about suburbia?
Increased work flexibility is the primary motivating factor behind the exodus we've seen across the past couple of years. Most of the country's biggest companies are centered in large, metropolitan cities like New York City and Los Angeles. Employees figured it was easier to live near their job to reduce commute time. But now that so many major corporations are allowing workers the option to go permanently remote, people no longer have to live down the street from the office.
Those who don't like urban congestion and everything that comes with it, such as traffic, crime, and loud noises, can now move hours away into a quiet countryside without fear of losing their job. Plus, now that people spend more time than ever at home, they want to enjoy their living space. Many are seeking more space so they can create home offices. City life in an apartment or condo is suddenly much more cramped when you're there for hours and hours each day.
Realtor notes that the unprecedented demands of the pandemic have made shoppers veer toward space and versatility, which is why suburban areas are far more appealing than dense metro cities. Buyers are getting more for their money in these areas than they would in the city.
Another reason the suburbs are becoming more popular is increased workplace flexibility. As the labor market becomes more competitive, it will be a savvy recruiting move to allow employees to choose how often they must be present in the office, if at all. Studies have even shown that employees who work from home spend more time working thanks to the time they save not having a daily commute.
Open floor plans used to be all the rage, but now that people are spending more time at home, they're starting to fall out of favor. Buyers want houses with more rooms, for privacy's sake. Those working from home appreciate the addition of a home office that separates their work and living space. Larger families that might have multiple members working from home shirk open concept floor plans in favor of giving people ample room to breathe.
There is also an increasing demand for improving living conditions and recreational amenities. If you're going to spend all this time at home, you want to enjoy it. Expect to see more people interested in home gyms, game rooms, and backyard additions such as fire pits and decks.
It's hard to say which of these trends are here to stay and which will die out along with the pandemic, but it doesn't seem like a bold claim to say that the prevalence of remote work is here to stay.
Stay up to date on the latest real estate trends.
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