The Impact of Remote Work on Suburban and Exurban Real Estate Markets
The COVID-19 pandemic has reshaped the way we work, live, and interact. With many companies shifting to remote work models, it has become increasingly common for people to live and work outside of traditional urban areas. This trend has had a significant impact on the suburban and exurban real estate markets – areas that are outside of major cities but still close enough for a reasonable commute. In this article, we will explore the effects of remote work on these real estate markets and how they are poised for potential growth in the future.
The Rise of Remote Work
The concept of remote work is not a new one, but prior to the pandemic, it was not widely adopted. The need for social distancing and stay-at-home orders forced many businesses to quickly shift to remote work models in order to keep their operations going. This sudden surge in remote work has led to a significant increase in people working from home.
This rise in remote work has given people the opportunity to live outside of congested cities, in areas that offer more space, lower costs, and a better quality of life. This has resulted in a shift in demand for real estate in suburban and exurban areas.
The Impact on Suburban Real Estate Markets
Traditionally, suburban areas have been a popular choice for families and individuals looking for more space and quieter communities. With the trend of remote work, suburban real estate markets have seen a surge in demand. People are no longer tied to living in or near a big city for their jobs, and suburbs offer more space and lower housing costs.
Increased Demand for Single-Family Homes
With remote work, people have a greater need for home office spaces, outdoor areas, and more room to accommodate their families. This has led to an increased demand for single-family homes, particularly in the suburbs. According to data from the National Association of Realtors, the sales of single-family homes have increased by 16.2% compared to the previous year, while condominiums and townhouses saw a decline of 12.3%.
Rising Prices and Inventory Shortages
The increased demand for suburban homes has also led to rising prices and inventory shortages. In many suburban areas, bidding wars have become a common occurrence, and homes are selling at or above asking prices. This has put pressure on buyers to act quickly and make competitive offers.
The limited supply and high demand for suburban homes have also led to a decrease in the average number of days a home is on the market. In July 2020, the average time on the market for a home in suburban areas was 22 days, down from 31 days in July 2019.
The Impact on Exurban Real Estate Markets
Exurban areas, or areas beyond the immediate suburbs, have also seen a surge in demand due to remote work. These areas offer even more space and affordability compared to suburbs and are seen as an attractive option for those who do not need to commute to a physical office.
A Revival of Small Towns
The rise of remote work has given new life to small towns and communities in exurban areas. With people no longer tied to living in or near big cities, they are able to experience a slower pace of life and the charm of small-town living. This has led to an increase in demand for homes in these areas and a boost to the local economies.
Challenges in Infrastructure and Services
While exurban areas offer more affordable housing options, they often lack the necessary infrastructure and services required to support a growing population. This has led to challenges in these areas, such as overburdened school systems, limited healthcare facilities, and inadequate public transportation. However, with the potential for continued growth, it is likely that these challenges will be addressed in the future.
The Future of Suburban and Exurban Real Estate Markets
As the pandemic continues to shape the way we work, it is clear that remote work is here to stay. This has significant implications for the suburban and exurban real estate markets. With more people able to live and work outside of major cities, these areas are poised for potential growth in the future.
However, it is important to note that the sustainability of this trend will depend on a number of factors, such as the duration of remote work policies, the availability of affordable housing, and the overall economic landscape. It is also worth considering the impact of potential shifts back to the office or a hybrid work model in the future.
Conclusion
The impact of remote work on suburban and exurban real estate markets is undeniable. With the rise of remote work, these areas have seen a surge in demand for housing, resulting in rising prices and inventory shortages. While there are challenges and uncertainties, the future looks bright for these real estate markets as remote work continues to shape the way we live and work.
In conclusion, remote work has had a significant impact on suburban and exurban real estate markets, and it will continue to shape these areas in the future. As we adapt to this new norm, it will be interesting to see how the real estate markets evolve and adapt to the changing needs and preferences of homebuyers.
