The debate around remote work ranges from people advocating working from home permanently to those saying people will have to return to the workspace sooner or later. It’s no surprise that the future of the workplace is tied closely to the future of real estate.
According to Forbes, 74% of professionals and 76% of entrepreneurs feel that remote work will be the new normal. While these statistics are surprising, companies such as Twitter and Slack have already offered their employees a permanent remote work option.
The same study from Forbes also cites that 97% of employees aren’t in favor of returning to the office full-time, demanding flexibility in their work. Opponents argue that post-pandemic remote work can’t survive because of work-life balance, the need for socal contact, and the need to maintain company culture.
However, if we move forward with the notion that remote work is here to stay, what exactly will that mean for the real estate market?
Trading City Life for the Suburbs
75% of Facebook employees say that they’d prefer to move to a different city if they could work from home permanently. These high numbers are primarily due to the high living costs of Silicon Valley. So, trading suburbs for city life is a choice many would make if they could work remotely. Another survey confirms that as many as 55% of employees would want to relocate to their dream house if remote work becomes permanent.
This can have lasting impacts on both residential and commercial real estate. In fact, it could change how we see real estate altogether.
The Future of Residential Properties
If remote work becomes a permanent practice for most Americans, the houses we inhabit will also change.
People will look for specific features in their new homes, which means a dedicated office space will become a necessity. In fact, Statista reports that managing at-home distractions is the biggest challenge of remote work.
A dedicated workspace in each house can address this challenge. Even office spaces in apartment buildings can help!
Commercial Real Estate Will Lose Its Purpose
Remote work will render corporate spaces obsolete, and there will be little to no need for companies to rent or buy expensive workspaces. Jobs that require people to work on-site will exist, but the overall impact on commercial real estate will be significant.
Residential Real Estate Will Become Pricier
One of the driving factors when it comes to choosing our home is the commute to work. With the commute factor out of the equation, we will look for other benefits when picking a house.
Less commuting means fewer emissions, but it also means that more people will be willing to live farther downtown or move out to the suburbs. This will lead to an increase in the prices of residential properties. Indeed, the real estate industry will face significant disruption if the remote work receives widespread acceptance after COVID-19.
Are you looking to relocate, buy, or sell your house in Fayetteville, NC? Phillip Fehler, a broker of Fathom Realty, is ready to serve you!