How Remote Workers affect the Housing Market

Remote Workers

As more people are able to work from home, housing priorities have changed, and different places and types of housing have become more popular.

As wireless technology changes how and where people do their jobs, giving many the freedom to work remotely at least part of the time, so too is it changing their thinking about real estate.

Remote workers still represent a minority of the work force. According to the Bureau of Labor Statistics, as of last year about 24 percent of employed persons worked at least part of the time at home; among those with advanced degrees, it was 42 percent. In a survey last year of 23,000 new home shoppers, John Burns Real Estate Consulting, a firm with offices across the country, found that roughly 30 percent worked at home between one and four days a week; 13 percent worked at home full time.

Nevertheless, as the numbers have grown, some in the real estate industry are wondering about the long-term impact, said Zach Aarons, a co-founder of MetaProp, a New York City venture capital firm focused on real estate technology. Some investors in New York real estate see a potential threat if remote workers start to exit the city for less expensive locations, he said. The looming question is: “Do people live in the city because they like the community, or just because it’s convenient to their job?”

Brad Hargreaves, the founder and chief executive of Common, which operates co-living communities in urban markets, said that while he believed the trend away from daily in-office work would continue, he didn’t believe it would result in an exodus out of major cities.

“I still think there’s a lot of benefit for people living in an urban center, both personally and professionally,” he said. “What will be needed is more flexibility for residential spaces.”

The rise in remote work is already changing people’s preferences in single-family home and apartment design, and affording them greater freedom in choosing where and how to live. Here are seven ways in which the trend is changing the housing market.

“The importance of home offices has almost begun to rival the attention that buyers give to kitchens,” said Robin Kencel, an associate broker with Compass in Greenwich, Conn. “Where they will work is on nearly every buyer’s mind.”

While some buyers just want a comfortable space to plop down with their laptops, others want a dedicated room where they can shut the door and take calls without interruption. “Back in the day you’d have the mahogany-paneled library, but we’re not living in a formal world now,” Ms. Kencel said. “Now, people are looking for more of a textured, comfortable feeling — natural light, doors to a private terrace, and great wall and floor finishes.”

Alison Bernstein, the president of the Suburban Jungle real estate agency, based in New York City, also finds that buyers are “highly focused on, how do we functionally work at home?” And that focus extends to work space for their children. “Dedicated homework areas are very, very popular,” Ms. Bernstein said.

Now that people can stream whatever they want to watch on their smartphones, laptops or tablets anywhere in the house, spaces designed solely for that purpose are increasingly viewed as superfluous, Ms. Bernstein said.

New home sizes are trending downward, and buyers are looking for spaces that can serve more than one purpose, said Robert Dietz, the chief economist for the National Association of Home Builders. Dedicating space for a media room has “fallen out of favor,” he said.

The shift also ties in with the rise in remote work: People who spend a lot of time working at home frequently don’t want to spend most of their leisure hours there as well, especially in the city, said Martin Eiden, an associate broker with Compass in New York.

“They are usually dying to go out and meet people,” he said. “The home entertainment factor has gone down.”

Lounge spaces set up as shared work areas for residents are common now in newer residential towers in New York. But developers are also tweaking apartment layouts to make it easier for residents to set up a home office.

At Avora, a new 184-unit condominium on the Hudson River in Weehawken, N.J., buyers can choose from floor plans that include an “alcove bonus space.” The spaces, which measure 11 feet square, “provide a dedicated space for work at home, but they’ve also been used as an art studio for a child or a place to display an art collection,” said Jill Preschel, the vice president of sales and marketing for the New York Metro Division of Landsea Homes, the California-based developer.

At Rose Hill, a new 45-story luxury condominium tower in the NoMad neighborhood of Manhattan, about half of the 123 units come with small “flex rooms” that can be closed off with sliding glass doors. The designs provide buyers with the extra work space they may need without requiring them to pay for an additional bedroom, said Meg Brod, a senior vice president and a regional development officer for the Rockefeller Group.

“You’re only paying for what you need, but it’s extra room you can really appreciate,” she said.

Co-living developments now account for more than 3,000 beds in cities across the country, with at least another 9,000 in the pipeline, according to a recent report from Cushman & Wakefield. The communities offer tenants private bedrooms in suites with shared living areas. Generally more affordable than standard rentals, and with more flexible lease terms, the developments also offer shared common areas for socializing and working.

“The trend toward co-living is very closely correlated with the rise in remote work — it’s that desire for flexibility, and to be able to move from job to job, city to city, without there being huge ramifications in getting out of leases,” said Susan Tjarksen, a managing director at Cushman.

Common operates about 30 co-living developments in six cities, including about 20 in New York. Mr. Hargreaves said a “double-digit percentage” of the company’s tenants work remotely. Tenants can transfer within the Common network at any time, which is a perk for independent contractors.

“If they’re working in New York, but they get a gig in San Francisco or Chicago, members can transfer without breaking their lease,” Mr. Hargreaves said.

Americans are moving less often. The average household moves every nine years, compared to every six years in the 1980s, according to data provided by John Burns Real Estate Consulting.

That’s primarily because of an aging population. “You’ve got more people who’ve moved up to their final house on the ladder,” said Mr. Dietz, of the National Association of Home Builders. On top of that, he said, many people who bought or refinanced their mortgages when interest rates reached historic lows have chosen not to move and risk paying a higher rate.

But Rick Palacios Jr., the director of research at John Burns, theorizes that the falling mobility rate may also be connected to the increase in telecommuting. “If you work at home, you don’t necessarily have to move if your job moves,” he said. “And many companies, ours included, view e-commuting as a competitive advantage that allows us to attract the best and the brightest, regardless of geography.”

Ms. Bernstein, of Suburban Jungle, said almost all her clients have the ability to work at home at least one day a week. But when choosing a town to live in, they emphasize that they don’t want to feel isolated.

“They want coffee shops and cafes with free Wi-Fi, co-working spaces, places to find community,” she said. “And some towns are developing real personalities for that.”

Her short list of places where remote workers in the New York region are congregating in greater numbers includes Montclair, N.J., Pleasantville and White Plains, N.Y., and Greenwich and Westport, Conn.

New Yorkers made up the largest share of new residents to Florida in 2017, at almost 64,000 people, compared with 53,000 in 2012, according to census data. Changes in federal tax laws that sharply limit deductions for state and local income taxes created new incentives for New Yorkers to move to the lower-tax Sunshine State. And people who can work remotely are feeling especially free to do so, said Jay Phillip Parker, chief executive of Douglas Elliman’s Florida brokerage.

“There are people that might have delayed their relocation to Florida, but because they can work remotely, it’s enhanced their ability to move sooner,” he said. “And it’s easy for them to fly in and out of New York City — there seems to be so many people hopping back and forth.”

Derrick Buckspan, a co-owner of Re/Max Shoreline, in Portland, Me., said the housing market there had been “tremendously impacted” by remote work, with more buyers coming in from Boston and New York. Telecommuters can easily get to meetings in either city without driving — Amtrak trains travel direct to Boston, and Concord Coach Lines runs two buses daily to Manhattan.

In Vermont, a program that offers to cover up to $10,000 in moving and some other expenses for remote workers who relocate to the state is luring urban refugees from all over. Since January, the state has approved 56 applicants to the program, nine of whom were from the New York metropolitan area, according to Nate Formalarie, the director of communications for the state’s Agency of Commerce and Community Development. The other applicants were primarily from other major city centers, including Chicago, Denver, Los Angeles and Boston.

“Most are in their 30s, and are bringing a spouse and/or kids with them,” Mr. Formalarie said. “Altogether, we’ve got about 140 new residents.”

Source: The New York Times

You May also Like this

Virtual Real Estate
Blockchain Technology to monetize ...

In the “real” world, has historically been seen as a viable investment....

brrrr
What is the BRRRR ...

If you're part of the business or plan on breaking into it,...

Macroeconomic
Macroeconomic Issues in Real ...

Understanding macroeconomic risk is critical to a successful strategy. While this form...

Technology
How Technology is transforming ...

Technology is constantly transforming the way we live, and the commercial real...

illiquidity premium
What is Illiquidity Premium ...

Illiquidity premium is the excess return an investor stands to earn in...

renewal
The procedure for the renewal ...

According to Section 1 of the , the law vests the ownership of...

pandemic
Post COVID-19 pandemic and ...

Adapt. Innovate. Accelerate. This is the mantra for any business right now...

Real Estate Wholesaling
Real Estate Wholesaling Pros ...

wholesaling is a kind of arbitrage in which a party known as a wholesaler...

stamp duty
The new Stamp Duty ...

Taxes are one of the ways through which the Government generates revenue...

WFH
How Work From Home ...

Google has announced that it will continue with work from home (WFH)...

Investment Portfolio
Investment Portfolio Diversification in ...

Months after the onset of Covid-19, we continue to see its impact...

path of progress
What is path of ...

As a , you may have heard the term path of progress before. The...

Virtual Real Estate
Increase of Virtual Real ...

Prospective buyers getting their first glimpse of potential homes through smartphone cameras...

Property Managers
Operational Guidelines Property Managers ...

The pandemic crisis has thrown nearly all industries for a loop, and...

Commercial real estate
The Effect of the ...

The real estate industry is changing, a change that started before the...

Disruptive Real Estate
Disruptive Real Estate and ...

What do Google, Microsoft, Facebook, Twitter, Visa and American Express all have...

Post-Pandemic
Outlook of Post-Pandemic Commercial ...

The COVID-19 pandemic is having a transformative impact on (CRE) markets. The...

invest in real estate
Reasons you should Invest ...

Your current financial stability doesn’t guarantee that you’ll be free from financial...

Retirement
Real Estate Investments for ...

Real estate can be an incredible tool to help you prepare and...

Real Estate Industry
Tips to better understand ...

If you're looking to buy or sell property, it's important to have...

Real Estate Investment
Ways of getting involved ...

While many people get involved in real estate to generate a return...

value
How to assess the ...

If you’re investing in property, you’ll need accurate real estate valuations to...

Real Estate Investors
Guiding Principles for Real ...

While the national faces significant uncertainty right now, it's important to recognize...

Real Estate Investing
The largest benefits of ...

Real estate is one of the best possible ways to drive personal...

The Real Estate Market
How the Real Estate ...

If you're looking to buy or sell property, it's important to have...

Remote Working
Remote Working and its ...

Many ask if the remote working culture will be here to stay,...

buying and selling
Real Estate Buying and ...

EASTON — agents and their colleagues have adapted quickly to the new...

unstable market
Investing in Real Estate ...

The industry is filled with its share of ups and downs. In...

real estate investments
Real Estate Investments to ...

There are several types of real estate , but most fall into...

office space
Will the Pandemic make ...

A myriad of publications have already pronounced office space a trend of...

How the pandemic will affect Resident Demands in the future
How the pandemic will ...

The current pandemic and global response is a once-in-a-lifetime event that has...

real estate stock market
The effect of Real ...

Financial market commentators tend to focus on the price of bonds and...

digital asset
How Real Estate is ...

Yesterday, I had a call with one of my company’s larger customers....

Real Estate Agents
Ways Real Estate Agents ...

There is a reason companies like Tesla have such a loyal customer...

Operational Real Estate
The importance of Operational ...

New York, NY—With the shift towards buying an experience over buying a...

Passive Income
Ways to Earn Passive ...

Passive income is an important factor in building wealth and achieving financial...

millennials
The Future of Real ...

We've all seen studies on millennials circulating around the internet. As the...

land
Things to consider before ...

Looking to buy land to build your dream home? Land is the...

Angel Investing
Angel Investing versus Real ...

I’m often asked what my preference is when comparing angel investing to...

Bitcoin Investment
The comparison of Real ...

Two popular avenues, real estate and bitcoin, have been making waves in...

mortgage
How to find the ...

If you’re looking to buy a home or in a single family...

Reserves
The importance of Reserves ...

Private real estate affords investors considerable control over their , from how...

attorney
The importance of an ...

Engaging the right attorney helps you avoid costly mistakes in deals. Especially...

bundle of rights
The comparison of bundle ...

What is “,” really? Most people might say it's the land and/or...

Lagos State Real Estate Law
Laws guiding the Use ...

The regulatory bodies in real estate include but are not restricted to the following;...

Commercial Real Estate Tech
2020 Top Commercial Real ...

Deloitte’s 2020 Commercial Real Estate Outlook surveyed 750 owners, operators and investors in 10...

Mortgage notes
Guide on investing in ...

Most new investors in active real estate start with a traditional method...

real estate rehab
Stages of Real Estate ...

If you play your cards right, rehabbing houses can be very rewarding...

Multifamily
Investing in Multifamily Real ...

Millions of Americans depend on cash flow generated by long-term investment portfolios,...

ways to invest in real estate
Ways to invest in ...

There is a common misconception that real estate investing requires property ownership....

rental properties
Pros and Cons of ...

Many investors understand why they should invest in real estate for the...

urban regeneration
Planners urge Lagos State ...

Planners have charged the Lagos state government to do more detailed master...

Commercial Real Estate Technologies
Trending Commercial Real Estate ...

The commercial real estate industry has entered a new phase of technology...

Real Estate Location as a franchisee
Tips to secure the ...

Real estate site selection has the power to make or break any...

5G Technology
5G Technology REITs

There is a revolution going on. You’ve probably heard the term 5G...

buyers
Questions Home Buyers should ...

Buying a home is one of the most expensive decisions you'll ever...

remodeling
Mistakes to avoid when ...

Americans are spending less on home renovations than they were at this...

Real Estate Market
Reasons for investing in ...

Are you thinking about purchasing your first piece of real estate? Investing...

real estate funds and REITs
Differences between real estate ...

Are you ready to invest in real estate? Real estate funds and real...

Real Estate Technology
Investment in Real Estate ...

Investment in technology for real estate, also known as “proptech,” has seen...

Agents and Brokers
Differences between Real Estate ...

Real estate transactions often involve significant amounts of money. As a result,...

real estate crowdfunding
Real Estate Crowdfunding Investment

Ask a rich person how they got rich, and there’s a good...

Investing Real Estate Market
Investing in the right ...

Investing in real estate is tremendously exciting, and can be very lucrative....

housing in Nigeria
FMBN to build 100 ...

Ahmed Dangiwa, Managing Director, Federal Mortgage Bank of Nigeria (FMBN), said the...

local real estate market trends
Factors that determine Local ...

Real estate markets trend between times of boom and bust, depending on a...

real estate technology
How Technology is Transforming ...

It’s 2019, and the pace of innovation across industries is accelerating at...

invest in real estate
Affordable ways to invest ...

Real estate can help diversify a portfolio. One way to grow your...

real estate digital finance
8 top concepts of ...

In all history there has never been a more profound era of...

appraisal services
Why you need appraisal ...

Real estate investing can be an excellent way to earn passive income....

Real Estate Investment
Determining your Real Estate ...

Malcolm Gladwell states that it takes 10,000 hours of practice to become...

real estate agent
12 Qualities in Selecting ...

Purchasing a home is a huge financial commitment, so finding the right...

National Urban Development Policy
Revision of the National ...

The long-awaited overhaul of the National Urban Development Policy (NUDP) has been...

Warehouse
Capitalizing on the Warehouse ...

Everyone knows that retail is evolving, and common thought says that retail...

Mixed-Use Real Estate
Benefits of Mixed-Use Real ...

In cities, mixed-use real estate is hidden everywhere. Someone likely lives above...

dead capital
Real Estate Dead Capital ...

PwC estimates that Nigeria holds at least $300 billion or as much...

Blockchain Technology in Real Estate
The effect of Blockchain ...

Since the recession, the commercial real estate industry has experienced exceptional growth....

Post your Comments

NAME *
EMAIL *
Website

error: Content is protected !!
%d bloggers like this: