Coronavirus Real Estate TrendsHow Will Remote Work Affect the Future of Real Estate? by Charles Mburugu February 7, 2021February 1, 2021 by Charles Mburugu February 7, 2021February 1, 2021Since the COVID-19 pandemic struck, remote work has become the new normal. With the stay-at-home and social distancing orders, millions of Americans have been forced to work from home. However, a survey conducted last year during the pandemic revealed that over 80% of company leaders intend to allow employees to continue with remote work part-time after the pandemic. About 47% plan to permit employees to work remotely full-time. According to another survey by FlexJobs, 27% of workers said they are willing to take a pay cut of up to 20% to work remotely. So while it may seem like remote work is just a trend that developed due to the coronavirus, these stats prove it may be here to stay.Related: 7 Real Estate Trends to Expect in a Post COVID-19 WorldFor real estate investors, the big question is ‘How will telecommuting affect the US housing market 2021 and beyond?’ Here are some of the ways working remotely will impact the future of residential real estate and commercial real estate:4 Ways Remote Work Will Impact the Future of Real EstateReduced demand for office spaceAccording to a Future Workforce Report from Upwork, 58.6% of the US workforce was engaged in remote work. Out of this, 41% were fully remote, while 15.8% were partially remote. Even as offices start to open up and workers are allowed to return, it is expected that 26.7% will continue working remotely on a full-time basis. As a result, there will be less demand for office space in the future. Danny Ismail, Green Street’s lead office analyst, believes that office demand will drop by 10-15%.Migration from cities to small townsWhere people choose to reside has traditionally been connected to where they work. With the significant shift to remote work prompted by the coronavirus pandemic, many people now have the freedom to live and work from anywhere. According to a Zillow analysis, very few households in the metros have spare rooms that can be used as a home office for remote work. Therefore, many people are likely to move to the suburbs where they can find bigger homes that are within their budget. A report by Redfin revealed that there was an increased interest in small-town and rural areas during the COVID-19 outbreak.Higher home prices in the suburbsOne way remote work will affect the future of real estate is by driving suburban home prices up.One report showed that due to the demand for homes in suburbs, the year-over-year median sale price increased by 9.2% in August 2020. As the remote work trend persists, it is expected that homebuyer interest in suburban areas will remain high. And with the low interest rates, homeownership is now within the reach of more Americans. Due to the high demand, suburban home prices are likely to continue rising in 2021 and beyond.Related: Suburban Real Estate Market Boom Due to COVID-19A drop in city rentsAs people continue to move out of urban areas due to remote work, the rent prices in those areas will likely continue to drop. Realtor.com recently analyzed the median rents in some of the largest cities in the US. The study revealed that median rents had dropped by more than 10% in New York City, Salt Lake City, Denver, Washington DC, and San Jose, CA.Related: 15 US Cities with the Highest Rents in the US in 2021Invest in Real Estate in the 6 Best Places to Work Remotely in 2021Considering the future of real estate and remote work, where should you invest in the US housing market in 2021?You should target areas that are considered the most suitable for remote working. Moneycrashers.com recently shared a list of the best places to work remotely in 2021. These locations were selected based on factors such as internet coverage, cost of living, housing costs, walkability, average weather, proximity to green space, and overall economic health. We reviewed the list and selected some of the top cities where real estate investors are earning a good return based on Mashvisor’s real estate data.We’ve also included Airbnb data as remote work is having an impact on the short-term rental industry as well. Before moving to a new location, many travelers were giving neighborhoods a test-drive by staying in Airbnb rental properties first in 2020. Be sure to check local Airbnb regulations first, but owning an Airbnb in some of the best places for remote work may also prove to be a profitable real estate investment strategy in 2021.#1. Omaha, NebraskaMedian Property Price: $456,167Price per Square Foot: $166Price to Rent Ratio: 18Monthly Traditional Rental Income: $2,058Traditional Cash on Cash Return: 3.2%Average Airbnb Daily Rate: $93Monthly Airbnb Rental Income: $2,740Airbnb Cash on Cash Return: 3.7%Airbnb Occupancy Rate: 59%#2. Pittsburg, PennsylvaniaMedian Property Price: $343,944Price per Square Foot: $217Price to Rent Ratio: 21Monthly Traditional Rental Income: $1,350Traditional Cash on Cash Return: 2.8%Average Airbnb Daily Rate: $114Monthly Airbnb Rental Income: $2,184Airbnb Cash on Cash Return: 6.2%Airbnb Occupancy Rate: 62%#3. Grand Rapids, MichiganMedian Property Price: $298,378Price per Square Foot: $174Price to Rent Ratio: 21Monthly Traditional Rental Income: $ 1,172Traditional Cash on Cash Return: 2.7%Average Airbnb Daily Rate: $127Monthly Airbnb Rental Income: $2,081Airbnb Cash on Cash Return: 4.0%Airbnb Occupancy Rate: 60%#4. Greenville, South CarolinaMedian Property Price: $365,476 Price per Square Foot: $171 Price to Rent Ratio: 23Monthly Traditional Rental Income: $1,348 Traditional Cash on Cash Return: 2.6%Average Airbnb Daily Rate: $129 Monthly Airbnb Rental Income: $2,260 Airbnb Cash on Cash Return: 3.8%Airbnb Occupancy Rate: 61%#5. Eau Claire, Wisconsin Median Property Price: $292,638Price per Square Foot: $140Price to Rent Ratio: 22Monthly Traditional Rental Income: $1,132Traditional Cash on Cash Return: 2.2%Average Airbnb Daily Rate: $129Monthly Airbnb Rental Income: $2,653Airbnb Cash on Cash Return: 6.2%Airbnb Occupancy Rate: 67%#6. Traverse City, Michigan Median Property Price: $536,510Price per Square Foot: $282Price to Rent Ratio: 28Monthly Traditional Rental Income: $1,573Traditional Cash on Cash Return: 2.0%Average Airbnb Daily Rate: $210Monthly Airbnb Rental Income: $2,743Airbnb Cash on Cash Return: 3.8%Airbnb Occupancy Rate: 44% Search for My Investment PropertyConclusion It is clear that the remote work trend will continue to have a major impact on the commercial and residential real estate market. Therefore, before making an investment decision, take time to study the real estate market trends. COVID-19 has definitely shaken up the real estate industry and it’s important that you adapt. Don’t forget to use Mashvisor’s real estate investment tools to ensure that, no matter what is happening in the market, you find a profitable investment property for sale.To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here. Start Your Investment Property Search! START FREE TRIAL Grand Rapids MIOmaha NEPittsburgh PARental RateSuburbsTraverse City MI 0FacebookTwitterGoogle +PinterestLinkedin Charles MburuguCharles Mburugu is a HubSpot-certified content writer/marketer for B2B, B2C and SaaS companies. He loves writing on topics that help real estate investors and agents make better choices. Previous Post Should You Buy a Real Estate Portfolio for Sale? Next Post Should Real Estate Investors Buy a Fixer-Upper or Move-In Ready Property? Related Posts A Guide to Virtual Open Houses for Real Estate Agents Airbnb Coronavirus Cancellation Policy Update: All You Need to Know President Biden Extends Eviction Ban to March 31 The Impact of the Coronavirus on the California Real Estate Market 2020 Will the Coronavirus Cause a Repeat of the 2008 Housing Crisis? 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