At the peak of the COVID-19 pandemic, the quest for remote-work flexibilities led to a mass exodus from city centers, driving up demand for housing in smaller suburban real estate markets. Two years later, many of those who relocated are being forced to return to the office, and a large share of suburban and exurban homeowners now face a dilemma: lose the job or lose the house.
Luckily, rather than laying out strict in-person work requirements, most office jobs are gradually transitioning to hybrid work schedules to lessen the blow of lengthy commutes. In addition, higher housing costs coupled with a growing inventory shortage of homes may force homeowners to stay in place, meaning workers may be more likely to look for new jobs than to list their homes for sale, Realtor.com reports.
Many workers have said in surveys that they were likelier to search for a new job rather than a new home if they were forced back into their offices. There are still more job openings than there are workers to fill them. But there aren’t enough homes to go around.
“People will probably put up with a lot right now rather than have to move,” says Realtor.com Chief Economist Danielle Hale. “It’s not a friendly housing market for buyers.”
Those who do go through with a sale are likely to move to communities within shorter commutes of big-city downtowns. This could boost prices in these popular suburbs or smaller cities.
