The rise of remote work is more than just a trend; it’s here to stay. Many companies have fully incorporated remote work, or at least a hybrid of remote and office work.
This has caused many people to reconsider their lifestyles, including where they live. The impact on real estate has been considerable. In this article, we will explore the impact of remote work on real estate, including trends and future predictions.
Trends:
Increased Migration out of City Centres
Remote work has prompted a significant migration from city centers into more rural and suburban areas.
This shift has been due to both lifestyle and affordability. Home prices outside major city centres tend to be more affordable than in major city centres. Moreover, many people prefer the quieter, more peaceful lifestyle of suburban and rural living.
The Need for Larger Homes
Remote work has also prompted the need for larger homes with dedicated office space in the home.
Having a dedicated office – or at least working space is non-negotiable for a full-time remote worker. Furthermore, because homes in rural and suburban areas tend to be cheaper than city centers, many families can afford larger homes than they would in the city.
Changes in Rental Demand
With more people leaving the cities and moving to quieter rural and suburban areas, the demand for rental units in major cities has somewhat decreased.
This has increased vacancy rates and prompted landlords to adjust their prices to attract or keep tenants.
Predictions:
Sustained Urban and Rural Growth
Remote work is here to stay, so there will be a continued demand for housing in urban and rural areas.
This should cause a continued rise in real estate prices, rental demand, and infrastructure development.
Continued Evolution of Urban Centres
Cities will need to evolve to try to improve the quality of life for residents. This could see cities creating more flexible working environments, better amenities, and an improved quality of life to try and attract – and retain residents.
Case Study: Burnley, UK
Burnley, UK, is one town that highlights the impact of remote work on real estate trends. An interesting study by PayLess for Storge recently uncovered Burnley as the UK’s primary property hotspot.
The PayLess for Storage looked at the data between when a property was listed on the market and when the listing was removed to gauge the time taken for a sale to conclude.
The study found that properties in Burnley sold 58% faster than the national average. Notably, during the COVID pandemic, when remote work was the norm, Burnley’s property prices rose by 37.1%, clearly highlighting the growing trend of people leaving major city centers.
Moreover, properties in Burnley were selling for less than half the national average in May 2024, with the average property price in Burnley sitting at £108,000, substantially less than the national average of £284,000.
Burnley is 80% rural, with an excellent quality of life. This further highlights the changing real estate trends towards affordability and lifestyle as remote work becomes an increasing part of our daily lives.
