How Will Work From Home Effect Local Rents?

The Washington Times Herald has an good look at Factors to consider before investing in real estate. One thing they mentioned, we see having a potential large impact on real estate investing on 2022 is the impact work from home (WFH)

The author writes, “Location is a significant factor to consider when investing in real estate, but recent shifts in how and where people work could change the real estate investment landscape. A 2020 Gartner, Inc., survey of more than 300 financial executives and leaders in the finance industry found that roughly 25 percent will move at least one out of every five of their on-site workers to permanently remote positions in the years ahead. Economists note that this shift to remote working could be among the more lasting trends to emerge from the pandemic. Before investing in real estate, prospective investors should examine local trends to see if more and more locals are working remotely, and whether or not that’s affecting the market for rentals.”

It seems that we’ve only begun to see the impact of increased WFH will have on local real estate markets.

How much of an overall impact WFH will have on rent in markets like Greensboro or Raleigh which are already seeing large rent increases remains to be seen.

In the Philadelphia area, rural outer suburbs which are seeing strong growth like Lancaster could see a great impact in WFH continues to change where people are moving.