3 ways remote work will change real estate
There are two buzzwords already making their way into the world of Real Estate: Hybrid Working. As a consequence of the last two years’ game changing events, more and more professional workers are asking to be relocated, work remotely by the concept of “Home Office”, and/or are already looking for buying or leasing houses near their workplace so commuting doesn’t take too much of their time.
Cities will continue to grow but high-end property prices in city-centers will correct by 10-20% while property prices in rural areas will increase, with the presence of remote workers contributing to the reduction of regional inequalities (Global Wellness Institute, 2022). The real estate prices of properties that deliver a feeling of well-being located mainly in nature will skyrocket.
Places with high densities of flora and fauna, are exclusive assets and profitable investments.
Zoom Towns and the Power of the Remote Working Community
Home Office was growing in popularity prior to coronavirus, but COVID-19 accelerated it quicker than anything else. Those who were once commuting are now creating new cultural, social, and economic dynamics related to the blooming of communities self-called “Zoom Towns”. The term “Zoom Towns” is a play on the old term boomtown, which referred to towns and cities that experienced large growth due to oil discovery. The “Zoom”, in Zoom Towns refers to the virtual conferencing software, Zoom, which many remote workers use driven by the global actual context. (Rocket Mortgage, 2022)
The number of homes on the market will tick up by 0.3 percent, and single-family housing starts will rise 5 percent. It is expected that the 30-year fixed mortgage rate to average 3.3 percent for most of the year and be at 3.6 percent by the end of the year (Washington Post, 2022). The future looks bright for slower price growth.
Price Insensitive Buyers Boost
Premium properties in luxury resorts are the main beneficiary of this new trend, for example which now extends to cheaper locations. What makes it different from the past is that it’s being driven by national and local buyers who appear to be rather price-insensitive when looking for a holiday home, but wellness-sensitive when looking for a nice location.
Especially, at the start of the year before mortgage rates increase. Remote working will help expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise (Washington Post, 2022). An interesting plot twist for real estate 2022 investors who are now looking for properties in all-inclusive and freedom advocates like Mexico. Fully remote work, meanwhile, could make it possible for people to avoid the high housing costs of places like Seattle, New York, Miami, Los Angeles, and Boston (VOX, 2022).
Specific Housing Features Will Change
Remember the boom of co-working spaces before the pandemic? Today most multifamily developers are taking these in-situ offices seriously. Do not expect a boring square with brown and white finishes 90’s style. Demand for downtown living will remain, which is already causing people to pay a premium to live in walkable, transit-oriented areas for the foreseeable future, even if many of the perks and attractions aren’t accessible while the pandemic situation keeps settling down.
The desire to move from the city to the nature sites (i.e. mountains, beaches, among others.) will endure because it’s being driven by the biggest wellness trend: the aspiration to lead a healthier and better life, and a rethinking of the balance between work and leisure. Work and house spaces will be the hub for creativity and mental health, so take notice of this growing wave and adjust your business and marketing strategies accordingly.