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How is the trend toward remote work that started during the pandemic affecting real estate development?

On Behalf of | Dec 19, 2022 | Real Estate Law |

There are those who have been doing remote work for decades, but it is certainly something that has become more popular in the last few years. With the development of smartphones and the interconnectivity of computer systems and networks, technology makes it easy for a lot of workers to do their jobs from anywhere at all.

This has certainly had an impact on real estate development and prices, along with much more. Let’s take a look at a few ways that this has played out.

The Great Reshuffling

First and foremost, a phenomenon known as the Great Reshuffling saw people moving across the country. Often, these were people who used to live in a place with a very high cost of living, but their job turned remote, so they began looking for a better cost of living. For example, someone who lives in a small rural community while making the same salary that they earned in Boston may see that money go a lot farther.

The Great Reshuffling also meant that more homes were needed in areas outside of the major cities. This has driven up the value of these homes, and it may also create commercial opportunities, such as co-work spaces. Essentially, whenever you have an influx of individuals, that is going to change the supply and the demand for the property in the area. In this case, demand could go up, even though the businesses employing those new workers aren’t even in town.

What is happening to office buildings?

One of the biggest questions that has arisen from this is what’s going to happen to all of the office buildings the people used to have to go to before they could work from home. These buildings were once seen as a necessity, but they are now an afterthought because people can have a computer in their house. They have no reason to be in the same room as their co-workers.

It will certainly be interesting to see how this impacts the value of existing buildings or future construction projects. Again, this may also cause a shift in how properties are used, as numerous remote workers might be interested in co-work spaces that are similar to the old office environment.

If you’re interested in investing in real estate at such a volatile time, be sure you know exactly what options you have.