The past four years have changed the global workflow. During the pandemic, many businesses moved their workforce to an online workspace. Remote work, once relatively unheard of, is now commonplace. This shift in workplace location has created a ripple effect into the rest of our lives. As we tend to do here at House Help, we’re particularly interested in its impact on the housing market. People are more commonly given the opportunity to work anywhere, including the home. Remote work is reshaping housing demand, but how?

 

Trends in Housing Demands

1. Migration Away from Urban Centers

Cities are full of office space, and large skyscraping buildings to house busy workers during their daily work. But, with the rise of remote work, previously bustling offices sit empty as newly remote workers move into suburban or rural areas. Remote work allows for movement into more spacious and natural areas. Decreased cost of living makes rural areas attractive when the only requirement of a workplace is a quality internet connection.

 

2. Increased Interest in Home Offices

It’s never good to work where you relax. Having a designated workspace is vital to a healthy work-life balance when working remotely. For this reason, a dedicated home office space is becoming a priority for many homebuyers. Extra rooms, office spaces, and secluded workspaces within the home sell remote workers on homes. New homes are impacted by this, often incorporating flexible remote workspaces into their floor plans.

 

3. Prioritizing Location-based Amenities

Spending more time at home leads to being more invested in the community and space your home occupies. The flexibility of remote work allows homebuyers to be more selective. They seek out high-speed internet, engaging outdoor spaces, and recreational spaces closeby. With the removal of a commute, remote workers also have more time to invest in their surroundings.

 

Trends within the Real Estate Market

1. Decreased Urban Rent Demand

As remote workers relocate, they leave the spaces they previously occupied behind. In some cases, this decrease in demand causes a reduction in rent. Vacancies and a decrease in demand will on occasion prompt a landlord to decrease rent. Another option is that these vacant units are repurposed. Recycled apartment and office spaces are transformed into co-working spaces and remote work-focused residential spaces.

 

2. Suburban Real Estate Market Boom

On the flip side, in suburban and rural areas real estate prices have gone up significantly. Remote workers seeking homes have driven home prices upwards, increasing market competition. Despite the resulting economic growth, first-time home buyers in rural areas find increased difficulty when buying.

 

3. Investment in Rural Areas

An influx of movement into rural areas has increased property value, allowing infrastructure developments previously unreachable. Amenities and services in these areas are being overhauled and improved in efforts to retain these remote workers. Money put into the community comes back around to improve life for everyone involved.

 

Challenges and Opportunities:

Challenges:

  1. Internal Infrastructure Strain: Suburban and rural areas may struggle to meet the demands associated with an increased population of prior urban livers. Internet connectivity and transportation can take a hit until adjusted to new demand. 
  2. Decrease in Housing Affordability: The housing market continues to skyrocket, and increased demand in rural areas has the potential to lead to higher home prices. Increased prices make it difficult for lower-income home buyers to secure a safe home. 
  3. Urban Decline: Migration away from urban centers can cause economic challenges as uncle is removed from the ecosystem. 

 

Opportunities:

  1. Potential for Economic Growth: A counter to urban decline, in suburban and rural areas the influx of income will promote economic growth and investment for those who can afford it. 
  2. Remote Work-Related Housing Innovation: To meet the expectations and demands of an increase in remote work, housing designers and construction companies are pushed towards innovation. 
  3. Improved Quality of Life: Remote work allows people to move to areas that suit their lifestyle. Movement therefore offers them a better quality of life, promoting overall well-being.

 

Remote work in reshaping the housing market, and doesn’t appear to be going anywhere. Employees are gaining more freedom to live where they please. The resulting migration into suburban and rural areas have impacts on the economy and housing market in those areas. To meet demand, housing must innovate. The evolution of work and housing go hand in hand, and we can’t wait to see how it develops


At House Help MN we understand the importance of a home and how big of a decision it is when it comes to buying or selling, and that not every situation is the same. That is why we follow a strict code of ethics and are transparent with everything we do. With 20 years in the real estate industry, we will walk you through multiple options and help you every step of the way. We will find a solution that is right for you and make the process quick and as easy as possible.

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