Remote Work is Transforming Housing Markets

The COVID-19 pandemic has not only changed work environments but also influenced where people choose to live. According to recent survey insights published from Fannie Mae, remote work continues to hold steady, and it could be the solution to the current housing affordability crisis. 

Fannie Mae’s National Housing Survey (NHS) reveals that the percentage of fully remote and hybrid workers has remained consistent in the post-pandemic era, with 35% in Q1 2023 marking only a slight decrease from 36% in Q3 2021. This consistency suggests that remote and hybrid work models are here to stay, despite major companies like Amazon and Goldman Sachs urging employees to return to offices. 

One of the significant benefits of this trend is that it allows employees to access a broader range of housing markets, and this could potentially lead to cost savings and a wider variety of amenities. For employers, this also means access to a larger talent pool. 

Fannie Mae’s survey also indicates an increased willingness among workers to move farther from their workplaces. The data reveals that in 2023, 22% of remote and hybrid workers expressed a willingness to relocate or increase their commute by over 20 minutes. This is a jump from 14% in 2021, according to the data. The growing sentiment is particularly shared among younger workers aged 18-34. 

Affordability has become a paramount concern for both renters and homeowners. For renters, affordability concerns have doubled, becoming the top consideration for their next move, jumping from 21% in Q4 2014 to 46% in Q1 2023. Homeowners are feeling squeezed, too, with affordability concerns rising from 19% in Q4 2014 to 30% in Q1 2023. 

The survey reveals how the suburbs are emerging as the preferred location for both renters and homeowners — likely driven by affordability pressures, a desire for more space, and increased workplace flexibility, according to the report. 

Remote work is not just changing modern work habits but also influencing broader economic and societal trends, especially in housing. The ripple effects of flexible work environments on housing preferences and affordability will continue to influence local economies.