The recent Coronavirus pandemic caused many Americans to change how they live and work. One example is the widespread switch to working remotely. According to a 2021 Statista report, before COVID-19, 17% of the U.S. workforce worked from home five days a week or more. After the outbreak, 44% worked from home. This increase in remote working has resulted in mostly positive outcomes for both the employee and the employer. Here are a few telecommuting statistics compiled by Review 42:
- 77% of telecommuters report being more productive
- 30% of telecommuters save upward of $5,000 a year
- 80% of telecommuters experience less work-related stress
- $11,000 is how much companies can save annually for each employee that works remotely half-time
- People who work remotely earn $4,000 more per year on average
- 99% of remote workers want to continue telecommuting in the future
- 90% of remote workers would recommend working remotely to a friend
With more people adjusting to working from home, how and where people live and work are bound to change.
Here are five ways remote working could affect the real estate market :
- Moving away from expensive urban areas. Since the need to live near a downtown job will no longer be as important, employees will seek more affordable suburban or rural places to live.
- Companies shrinking their office footprint. It should come as no surprise that if more employees work from home, there will be less need for office space. The reduction has created a desire for companies to seek smaller offices with more amenities and better facilities.
- Remodeling the home office. Since telecommuters are able to create their own work environment, they can either remodel their current home to include a comfortable home office or gym or purchase a new home with those amenities. And since they can live further away from more expensive urban areas (see number one), they can afford the upgrades.
- Seeking environmentally-friendly neighborhoods. Because remote workers will be spending more time at home, they’ll want to enjoy their surroundings: open yards and landscaping, trails for walking, nearby parks, and recreation areas.
- More real estate deals done remotely. Advancements in technology and the increased usage of video conferencing platforms have made virtual tours common. Buyers can view homes on self-guided tours without an agent present. The purchase process, including acquiring a mortgage loan, and in most cases closing, can also all be done remotely.
And statistics seem to back up these assumptions. According to a Realtor.com home buyers survey, among the top 8 reasons for buying a home in 2021 are: needing more space (1), wanting outdoor space (4), and living farther away from work (8).
If you’re looking to upgrade your current home and need a refinance, or a new home loan, give the experts at NASB a call at 855-465-0753 or click here for more information.