The stay-at-home orders caused by the coronavirus pandemic this year have altered so much of our daily lives including how we work. With more people working remotely, our homes have also changed significantly.
More companies, too, have realized the benefits of remote work and expanded work-from-home policies and have signaled that they’ll continue these programs even after the pandemic has lifted. Because of this, we’ve already begun to see a shift in home buying in 2021 and will inevitably see even more changes in the new year.
Here are four ways remote work will drive home buying in 2021.
No.1 — Commutes Will No Longer be a Factor
If more employees can and do continue to work remotely in 2021, we will see a shift in where people purchase homes.
Condos deep in the heart of the city or those close to highways or public transportation lose their appeal if commute time is no longer an issue. That’s not to say that they’ll be a huge departure from urban living, but certainly more people who were paying top-dollar to live in the city may use their new-found work flexibility to live in a more affordable area.
Severing the tie to physical office space will change home-buyers options significantly.
No.2 — Savings May Lead to Home Purchases
Changes in the way people live and work also affects where they spend their money.
Because of the lockdown, people are eating out less, having groceries delivered to their home, and cooking more meals which means they are actually saving money.
What’s more, as companies embrace video conferencing, fewer people may travel for work in the future which means even further savings for companies everywhere.
As people save more money, they will have more opportunities to purchase a home in the future.
No. 3 — Homes Will Need Dedicated Workspaces
It used to be that, on rare occasions, we might spend a day or two working from to make appointments or recover from a cold. But now, more companies are considering making work remote permanent.
Realizing that working from the dining room table isn’t a long-term and comfortable option for work, more people will seek homes with dedicated offices and workspaces.
This shift will require REALTORS(R) to innovate. A flex space that once was marketed as a den or guest bedroom should now be staged as office space with room for a desk and ample natural light for video conferencing.
No.4 — Home Prices Will Be Affected
Because of low inventory, home prices continue to skyrocket. Some also predict that the changes in where people buy homes because of remote work will also affect home prices in varying markets.
Anytime there is a significant change in the location and types of homes that people purchase, the economic outcome has the potential to make some areas and homes more or less desirable. Therefore, some housing markets may be newly saturated in 2021 or the reverse.
Uncertainty will continue to affect us in many ways but one thing we already know is that people will continue to buy homes in 2021. How, where, and why they buy homes, remains to be seen.