Due to COVID-19, a stay-at-home order was implemented in most cities, and workers had to shift from office to their home. This “Work from Home” or WFH will continue even after the pandemic is over, and it already has an adverse effect on the real estate business.
According to several studies, most employees like the Work from Home culture and will continue to do WFH in the future. Besides, several tech giants are planning to shift their on-site workers to permanent remote work. All these trends suggest that the WFH will stay even when the pandemic is over, and realtors will have to cope up with this new situation as soon as possible.
Impact of WFH on Real Estate Business
1. Decline in Demand for Properties in Major Cities
Real estate properties of cities like Miami, California, Boston, New York have higher property prices. As these cities were the employment hub, this change was bound to happen. Talents from all over the world used to come to these cities, and as a result, the demand for real estate was skyrocketing.
But due to Work from Home, employees no longer have to come to these cities and live here. They can move to downtown or suburban areas where there is a higher quality life and presence of nature.
However, this shift from crowded areas to the suburbs will take some time, and meanwhile, real estate investors will have strategies of how they can keep the demand high for real estate properties in major cities.
2. Increase in Demand for Suburb Homes
Employees who previously lived in cities had to commute hours to reach their office. But as there is no need for going to the office every day, people will start to leave their city life and move to suburbs, especially those who cherish living in a quiet and single-family home.
Usually, real estate prices in suburban areas is comparatively low and have a high-quality life. This will attract a lot of people, and eventually, there will be an increase in demand for suburban homes.
3. More Coworking Spaces
Work from Home sounds good, but sometimes it gets hard for employees to be productive all the time. Besides, due to various reasons, Work from Home sometimes becomes impossible. In this situation, coworking spaces can come into play.
Before this pandemic, many real estate builders were including coworking spaces in multifamily complexes. This feature has attracted a lot of homeowners and it will continue in the future.
4. Demand for Additional Home Space
Due to WFH, employees will have to stay at home almost most of the time. That’s why before buying a new house, most people look for additional spaces like gym areas, office space, relaxing space, etc., in their home. Besides, it’s noticed that the homes with these features are in high demand and getting sold faster.
Apart from these, there is a massive change in the usage of commercial areas and real estate. If you want to succeed in the post COVID real estate business, you must rethink your plans and move forward.0