Is the Popularity of Telecommuting Impacting Real Estate?

Is the increased availability of telecommuting for employees impacting the housing market?

With more and more organizations allowing employees to work from home, how many are taking advantage of the perk and moving to cities with a lower cost of living? After moving locations, more than half of respondents in a recent Redfin survey said they sometimes or always work remotely since they moved to a new area, compared to 44% who worked remotely sometimes or always before a move. Younger respondents were more likely to work from home, especially after a move. For those 38 and younger, 55.5% reported telecommuting after a move, compared to 46.9% pre-move. For those 39 and older, the gap is slimmer, 49.2% reported telecommuting after a move, compared to 42.7% before a move.

“The job market is very tight and employers want to hold on to people, so companies are much more willing now to allow workers to move,” says Daryl Fairweather, Redfin’s chief economist. “Plus, technology has enabled employers to let staff work remotely in a cost-efficient and productive manner.” Fairweather added that allowing employees to work remotely is one way to keep costs down for an organization while keeping employees, instead of offering a higher salary or other work perks.

Those participating in the survey said affordable housing was their top reason for relocating at 25.7%. Other popular reasons for moving included proximity to loved ones for 21.2% and retirement for 17.9%. However, 60% reported that they were able to afford more leisurely activities and expenses after moving to a new area.