Remote work is changing the real estate industry.
Since the beginning of the Covid-19 pandemic in 2020, more people worldwide have been working remotely. Working from home is relatively easy and sometimes more convenient for many office jobs. Florida is one of the most desirable places to live, and many choose to live in larger cities such as Miami, Ft Lauderdale, or Orlando for employment opportunities. There has been a substantial shift in the housing market throughout the pandemic, causing people to relocate.
How remote work affects where people live
As remote and distance work has become more common and even mandatory in some sectors, it has affected persons in several ways, including their productivity, commute time, and spent with their families. In addition, the pandemic and remote work has also impacted where people choose to live.
Many have decided to move outside the city to find a bigger, more comfortable living space. Since they go in to work less or none at all, a longer commute may not be a dealbreaker.
In several parts of the US, home prices have risen by more than 35% compared to a year ago. The National Association of Realtors® noted that increases had affected the Gulf shores of Florida to Idaho's Treasure Valley and Massachusetts' Berkshire County. All real estate listings in the markets mentioned above have a higher-than-average share for out-of-state views.
Real estate prices
The property market on Florida's West Coast is growing. People working from home opt to live somewhere sunny and less busy. As a result, Naples ranked No. 1, and North Port ranked No. 2 in the Wall Street Journal/Realtor.com's Emerging Housing Markets Index. In addition, growing interest in properties outside of the city has led to an increase in suburban market prices.
According to the FHFA House Price Index (HPI) Quarterly Report, Home appreciation in several Florida areas ranked in the nation's top 20 spots. Some notable appreciation occurred in Jacksonville at 9.1 percent, Orlando at 8.9 percent, and Fort Lauderdale at 8.3 percent. In addition, the state ranked twelfth overall for house price appreciation from Q1 2019 to Q1 2020.
More realtors now leverage technology.
It is always great to apply technology to solve modern-day problems. Real Estate may not top the list when you think about an industry where people can work remotely, but it is very much possible.
Technological advancements allow the real estate industry to operate remotely. Self-guided tours, tenant screening, delegating and coordinating tasks to contractors, preparing rental agreements, and realtors can set up rental portals from home. Unattended showings may act as a selling point.
Self-showings make it easier for the real estate firm/agent and the client, taking the hassle out of the process and getting clients through the door quicker. Smart lockboxes are now making this process safer and easier than before. The landlord or property manager can send a one-time access code to anyone interested in seeing the property and allow them a window of time to view it.
Self-showings make the process easier for property managers in several ways:
- They save valuable time and money because they don't have to visit the property as regularly.
- The Property Manager can manage more properties at once.
- It gives them more time to complete other tasks allowing them to work on their business.
- It enables managers to offer tours even when living out of state.
The increase in persons who work from home has potentially changed the real estate market landscape forever. People in various industries have expressed that they are more comfortable with remote work, and since the real estate market has functioned quite well with fewer people in the office, it may just remain the same in the future.
"Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid in full, and managed with reasonable care, it is about the safest investment in the world."- Franklin D. Roosevelt-
This article is for informational purposes only. It should not be considered Financial, Real Estate, or Legal Advice. The market fluctuates; therefore, not all information will remain the same. Consult a Financial or Real Estate attorney before making significant real estate decisions.