As the uncertainty of getting back into the workplace continues due to the COVID-19 pandemic, many companies are having their employees work from home indefinitely. Google recently announced employees will work from home through July 2021. Remote work also could drive the timeline and preferences of home purchases.
This new workplace phenomenon has started a new homebuying trend, according to a realtor.com June HarrisX survey. Of 2,000 home shoppers who plan to purchase a home in the next year, 63 percent of those currently working from home indicated their decision to buy a new house was a result of their ability to work remotely. Nearly 40 percent of those who said remote work was fueling their search expect to purchase a home within four to six months, and 13 percent said changes related to the pandemic prompted their desire to purchase a new home.
"The ability to work remotely is expanding home shoppers' geographic options and driving their motivation to buy, even if it means a longer commute, at least in the short term," said realtor.com senior economist George Ratiu.
The survey found over 20 percent of respondents who are buying because of remote work say having a home office is important to them. A home office was the most selected new home feature, followed by a garage, a quiet location, an updated kitchen, a large backyard, and an open floor plan.
"The pandemic has forced many families to adjust to the work from home and online schooling situation. How this will shape homebuyer preferences in the long-term will depend on the virus," said Mary Kay Groth, president of the Silicon Valley Association of Realtors. "What we do know is long hibernation at home has emphasized the value of homeownership for many."
Groth sees this and other factors fueling the local housing market. "We've seen Silicon Valley's housing market rebound since May. June home sales in San Mateo County increased 49 percent from May and in Santa Clara County, sales increased 72 percent from May. It's been remarkable how our Realtors and buyers and sellers have been able to adjust in this COVID environment."
While the flexibility of working remotely may prompt buyers to look elsewhere, Groth does not see this trend changing housing demand. "Major innovative companies and the best schools and universities are based here, plus our great weather and close proximity to beautiful beaches and mountains makes Silicon Valley still a great place to live."
At a recent MLSListings virtual session, the local multiple service provider's partner economist, Dr. Elliott Eisenberg, said working remotely will not erase the need for employees in the office. With working remotely, Eisenberg said the need to live in a very high cost city like San Francisco or San Jose goes way down, but once people don't come to work, future hiring policies could change and employers may look to outsource work to places like India, which require cheaper wages.
"We know that in the long run, we cannot run a company successfully without having everybody working in the office at least sometimes. You have to get to know your co-workers at some level. As long as we know everybody from before pre-COVID-19 days, it's easier to work from home because we have the human capital we've developed, but if some new person comes to your team, it takes more work to get to know them," explained Eisenberg.
On the other hand, Eisenberg noted in situations where employees work remotely some days, offices would have more space in between the people. Companies also could create satellite locations 20 miles away, people moving would create more inventory, which is something Silicon Valley badly needs.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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