A few years ago, you thought that you would be in a rush hour twice a day for the rest of your life because your corporate career forced you to endure commuting into the office every day
But now that you landed a remote work job that allows you to work anywhere in the world, you are suddenly looking to move to a warm beautiful U.S. city that never sees a snowflake.
According to the U.S. Bureau of Labor Statistics, one in five workers worked remotely in 2023. Numerous studies are also predicting that this number will rise dramatically by 2025, with one study indicating that 98% of global respondents want to work remotely.
It’s no surprise that the desire to work from home is becoming very popular with work-life balance being a top priority for many individuals. To take full advantage of working from home, people want to relocate to the US and live the American dream. Here are 5 ways that remote work is changing the US Real Estate Market.
The Pandemic Effect – Living the Suburban Dream
The COVID-19 pandemic saw many city dwellers who didn’t want to commute far to the office every day moved to more suburban, even rural, locations. At that time, the move was predicted to be temporary. Now office attendance rates are down in major metro areas by almost 50% 4 years after the COVID-19 pandemic. Many people are finding themselves unwilling to go back to their suffocating, urban homes long after the pandemic has died down. As a result based on real estate data from Zillow, US house prices have gone up 41% since March 2020.
With existing technology proving that it is possible to stay productive even when working from home, the concept of remote work has become more palatable to company owners, allowing more of their employees to work from anywhere.
This has created a growing demand for housing in the suburbs, as people were no longer tied to urban centers. As a result, suburban home sales have seen an impressive spike with formerly overlooked places becoming more attractive to home buyers.
Demand for Bigger Homes with Dedicated Work Spaces
Gone are the days when only families or those with kids are the only ones looking for bigger homes. With remote work becoming a norm, even single individuals or couples without children are now opting for more spacious properties to comfortably accommodate their new lifestyle.
Buying a house that will serve as a primary residence and a remote workplace means the need for larger spaces. Having a dedicated home office is often a requirement which means that even if the home buyer is single or does not have kids, a spare room or extra space is often needed.
Aside from the spacious interiors, other amenities that many home buyers are looking for include access to a seamless internet connection, outdoor space or garden, proximity to nature and recreational areas, and a quiet neighborhood conducive to remote work.
Urban Dwellings Are More Attainable
Many local and foreign investors often set their sights on acquiring property in major city centers in the United States. For example, Manhattan apartments fell in the second quarter of 2024 by 3%. The stratospheric prices, however, become a common obstacle that many hopeful buyers face.
With the shift to remote work, the demand for condos and apartments in the usual city centers has slowed down. As the location is no longer the only selling point, this has prompted property developers and owners to rethink their pricing strategies to attract buyers.
Because of this, the options have opened up for potential investors looking for urban living but without the usually high price tag. As a result, getting a house in major cities has now become attainable even for first-time home buyers or those with moderate budgets.
Rise in Second Home Purchases
The growing interest in second homes has also become a trend in the real estate market. As remote work gives individuals and families more flexibility, many are now considering purchasing a secondary residence to escape the congestion of city living. 81% of high net-worth individuals who own a second home say they bought a second home to escape everyday stresses.
Many are looking for vacation homes near lakes, mountains, or beaches that can serve as a retreat from the hustle and bustle of urban life. These serene locations provide an ideal escape, offering not only a peaceful environment but also opportunities for outdoor activities and relaxation.
Having a second home also provides an opportunity for individuals and families to diversify their investments while enjoying some much-needed change of scenery.
Financial Services Adapting to Meet New Needs
The evolving needs of the home buyer mean financial institutions need to adapt to meet these new demands. Remote workers are tech-savvy and expect seamless digital experiences when it comes to financing their home purchases. Cross-border mortgage provider Milo.io understands that the changing demographic that is buying US real estate has spurred a need for more accessible and convenient cross-border mortgage services. In response, Milo offers non-US home buyers and real estate investors debt-service coverage ratio (DSCR) loans, and it requires minimal documentation compared to a conventional mortgage.
This shift in the US housing market has prompted Milo to develop a web app that allows real estate investors and home buyers to complete a mortgage application and get an accurate mortgage rate within 10 minutes. This has made Milo hands down one of the easiest mortgage solutions for non-US real estate investors and home buyers.
If you’re ready to purchase your dream US home, put all the real estate info into the Milo app, get an accurate mortgage rate within 10 minutes, and close your real estate deal in as fast as 2 weeks.
Published by: Martin De Juan
