At the peak of the pandemic, businesses had to shut down. Many employers started working remotely full-time. As things open back up, some employees are considering continuing to work from home.
This growing trend in remote work will have an impact on the housing market.
How remote working Is Impacting the Rental Market
Of course, there are many benefits of remote work. Buyers are making purchasing decisions based on this new trend. Here are some of the ways the housing market is being impacted.
1. Change in Home Design
One of the more significant changes to the rental market is the way contractors layout new homes. Homes are now being built with remote work in mind. Designers are adding interior features to cater to those working virtually. They need to plan out areas to put desks.
When building new construction, there are spacing requirements. Contractors may have to downsize the bedroom to accommodate a designated office. Some houses have a built-in working area to attract buyers.
Another consideration is creating a space that buyers can extend upwards or downwards. Many homeowners will want to transform an area into their office later on.
Also, keep in mind your insurer may charge a higher premium for working at home. Your mortgage shouldn’t be affected. If you’re renting, make sure your lease allows you to work remotely full-time.
2. Shift in Popular Locations
The city center is often the hub of employment growth and opportunity. However, with more people working from home, this factor is less of a big deal. Buyers looking for homes don’t need to be close to their company’s primary office. This means they can opt for a house in a more urban area.
For those looking to escape the hustle and bustle of the city, a more rural area can be appealing. This has caused an increase in popularity for suburban and commuter town locations. The higher demand is increasing housing prices. For home sellers in this area, it’s an ideal market.
If you already live in a smaller suburban area, it is an excellent time to rent out your property.
3. Increased Need for Internet Access
When working from home, having fast internet is critical. You need to be able to stream your video calls and share documents. This puts pressure on infrastructure to adapt to more efficient broadband technology.
Some residents will pay more for homes with fast internet already installed. So, having more advanced technology can increase your property’s resale value.
4. More Pressure on Back Road Infrastructure
With more people at home, the roads may be less congested. However, some people still go into the office periodically. With their home further away, they may have a longer commute taking minor roads.
These roads will then need to be regularly maintained. With more people moving further from the city, roads will need to be built in remote locations.
5. Increase in Coworking Spaces
With the increasing trend of remote work, coworking spaces are gaining popularity. These are essentially shared workspaces. They offer a change of scenery from your at-home working area.
Coworking spaces offer some amenities, such as private meeting rooms or a kitchen. These places can also provide remote workers a sense of community.
Another draw is they are cheaper to rent out than a private office space. So, if you’re looking to invest in real estate, this could be one option.
6. Decrease in Property Turn Over
Since people don’t have to relocate for work, they may consider staying in their home long-term. Some people prefer to grow up and raise a family in their childhood home.
You may want to prepare your rental to meet the needs of tenants who plan to stay – and age – long-term at your property.
7. Rising Popularity of Rentals
Remote work allows you to have a more flexible schedule. This makes it easier to go on vacations or visit extended family. Renting residential properties can be a more cost-effective option for many, than staying in a hotel.
As a landlord renting out your space can provide you with a source of income. You may also receive specific tax incentives.
Besides the money, renting gives you the flexibility to sell your home when you’re ready. Also, during that time, your house may continue to appreciate. Then when you put your house on the market, you will get a higher ROI.
Here are some tips for renting out your property successfully:
- Understand your obligations as a landlord
- Prepare your home for renters
- Find a letting agent
- Hire professionals to help with finances
- Screen tenants carefully
8. Change in Rental Priorities
For those renting a home, the amenities they desire have changed. Office spaces and fast internet connection are becoming more popular features. For those looking for a change of scenery, larger outdoor spaces are a bonus. Keeping in mind tenants shifting needs is essential for rental owners.
Here are some other popular apartment amenities:
- Swimming pools
- Fitness centers
- Assigned parking space
- In-unit laundry
Benefits of Working From Home
Working from home allows you to do your job right from the comfort of your own home. Here are some of the top advantages of remote work.
1. Better Work-Life Balance
Many virtual jobs allow you to have a more flexible schedule. You may be able to pick the time you start or end. Having a flexible schedule is convenient for busy parents. Telework also enables them to save money on child care services. Working from home makes it easier to run errands in the middle of the day.
2. Less Commuting Time
Depending on where you live, you could spend multiple hours a week commuting. If you live in a busier area, traffic adds to your morning commute. Working from home allows you to get up and start your day right away.
Instead of trying to beat the rush hour traffic, you can sit and enjoy a cup of coffee. You can use that time to get yourself mentally ready for the day. Try eating a healthy breakfast or slipping in a quick workout.
3. Location Independence
One of the perks of virtual work is you can choose where you want to live. You can travel across the world and not be tied to your office.
Remote jobs are also enticing if you want to live a more nomadic lifestyle and explore other areas.
4. Saves Money
Working from home can also reduce certain expenses. You can save money on gas, public transportation and parking fees. The money you save can then turn into extra spending cash or help cover your bills.
You can also use the money to enhance your at-home workspace. You may consider investing in a more comfortable chair or upgrade your tech.
Employers can also benefit from their employees’ telecommuting. This can reduce costs of real estate, transit subsidies, and daily office operations.
5. Helps the Environment
By reducing your commute, you’re helping out the planet. Cars release greenhouse gases into the air, causing pollution.
Too much pollution can have a negative impact on climate change. Also, office buildings use energy and emit fuels to power appliances. Having more people working virtually can reduce the amount of energy wasted.
6. You Can Customize Your Office Space
Working at home allows you to control the setup of your office. You can add comfortable seating and design the space to fit your personality. You also can determine your office location to limit distractions.
Here are some tips for decorating your home workspace:
- Incorporate person touches
- Add in the color green
- Let in natural light
- Purchase a standing desk
- Clear out Clutter
7. Increased Productivity
Being at home can help to limit certain distractions. You have fewer interruptions from co-workers. You may also have to attend fewer meetings throughout the day. Working remotely eliminates your commute, allowing you more time to get things done.
8. Provides Better Accessibility
Working in an office can be tough for those with disabilities. They may require certain accommodations, such as specialized equipment or a flexible schedule. Working from home allows them access to a more comfortable working space and at-home resources. For example, aging veterans may make home upgrades, such as installing ramps, to help with decreased mobility.
Tips for Working from Home
As remote work grows in popularity, consider these tips to work from home effectively.
1. Get Into the Work Mindset
Setting up a routine can help you to be more productive. Choose the same starting and ending time each day. This will help you to transition between work and personal time. Also, get into the habit of forming a morning routine.
Find something to get your mind energized and focused for the day. Consider drinking coffee or watching the news.
In the evening, find an activity that can help get your mind off work. Try reading a book or catching up with family members.
2. Dress for Success
Consider changing into different clothes. This will also help to get you in the working mindset. Try taking morning showers to encourage you to put on professional clothes. You also want to be prepared for any last-minute zoom meeting that may come up.
3. Use Commute Time
While you aren’t physically commuting to work, take that time to get yourself ready for the day. Consider going for a quick morning walk. Taking this time can help you feel more focused and be more productive throughout the day.
Then at the end of the day, take the time you usually commute home to transition from work. Being at home makes it easier to work 24/7, so it’s essential to carve out this time for yourself.
4. Find an Office Space with a Closed Door
Having a door can create a physical barrier between you and outside distractions. It can also help you to focus on your projects mentally. It may even help to signal to your family that you are in work mode. When they see the door shut, hopefully, they know you aren’t to be disturbed.
5. Take breaks
It can be easy to get distracted by your work. You may become so engrossed in a project you forget to take a break. Breaks are essential for you to recharge and can reduce the risk of burnout.
Consider scheduling out your breaks to remain consistent. Also, setting alarms can help to keep you accountable.
Remote Work and the Rental Market
With the pandemic, remote work became a rising trend. Employers had to adapt to a new way of running their business. The workforce wasn’t the only area impacted. The housing market also saw changes.
Popular housing and rental amenities are changing. Also, buyers’ location preferences are shifting. With working from home the new normal, the rental market will continue to face changes.