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Published May 19, 2020
5 Ways Working from Home Will Affect Real Estate
The reality is working from home is here to stay, and not just for gig workers and freelancers. As we all become more accustomed to working from home, using Zoom and other conference software to connect with colleagues, it is quickly becoming an accepted norm in the workforce. But, how will this trend affect the way we buy and sell real estate?
COMMERCIAL REAL ESTATE
Prior to Pandemic 2020, commercial real estate was in short supply, driving up prices on small and large buildings. As businesses grew, so did the demands on owners to purchase more space. A growing workforce and higher customer demands pushed businesses to purchase closer to customer base and add to their payroll.
But, in light of the current situation, the U.S., in general, is finding that many of their workforce are adapting to a work-from-home environment. High speed internet is in well over four billion homes, and it's making service and tools easier to work from home.
As of May 2020, commercial sales have slowed to the slowest pace in several years. Those that are currently investing in commercial real estate want a deal, or there is no deal. They are aware that, in the coming months, businesses that closed due to the pandemic will sell or move, opening up many opportunities for a healthy business investor.
RESIDENTIAL REAL ESTATE
As businesses become more relaxed on the demands on their employees, this will open up where their employees choose to live. Why live in Silicon Valley when it’s not required to drive into the office every day?
Both Twitter and Square have recently announced that it will let its employees continue to work from home indefinitely. When a major employer of thousands of employees changes the rules like this, it will have a clear impact on real estate as well as employment opportunities. It also opens jobs to competition overseas and across the country.
Looking on the bright side, employees can now seek affordable solutions for their families in nearby towns, often saving thousands of dollars.
URBAN LIVING
In the years past, if you were a 20-to-30 something, then you wanted to live in city centers and lofts. These individuals would pay upwards of $3,500 in rent for a loft space within walking distance from work or the transit line. Having entertainment, bars, shopping all within walking distance from work defined this lifestyle.
However, working from home could potentially change that desire for urban living. If going forward, the trend is working from home, but you are paying such huge costs for rent and utilities, how will you choose to live? Is another option to pocket the rent savings and live at home a few more years? Will it change the way we meet our future partner?
Since more and more people will be working from home, there will clearly be less interaction except for online, potentially pushing the age where people choose to marry even further out. There are plenty of questions that remain that only the near future will answer in terms of potentially shifting real estate preferences.
A NEW NORMAL IN REAL ESTATE
One thing is for sure, this stay-at-home order has certainly moved the dial to a new normal that will change the face of buying real estate in the coming years.
If you have been considering a move and have questions, please contact Liz Jones at 951-970-4771 or visit us online at JonesRealtySocal.com
Article Written by Liz Jones
Jones Realty Group at Keller Williams Realty Temecula
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