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The share of people working from home full-time or part-time could double permanently, impacting homebuyer demand and land use, according to a new report from The Counselors of Real Estate.
Remote working and mobility will have the most significant impact on real estate over the next year, according to an annual report from The Counselors of Real Estate, a global consortium of commercial real estate professionals and experts .
The coronavirus pandemic and the concomitant increase in remote working have resulted in an increase in migration nationwide that some in the industry have called ‘The Big Shuffle’. This move is one of the factors that has led to an unprecedented increase in demand from home buyers and record stocks in markets across the country.
While an average of 32% of workers returned to their desks as of June 18, Michel Couillard, CRE 2021 Global President, noted in a webinar Wednesday that remote working could double permanently, which would have an impact on land use and homebuyer demand.
Source: CRE
“After years of… [a] trend towards urbanization, the pandemic has generally caused the remoteness of urban cores, in particular for high-income people who could afford to move or for low-income people who were looking for a lower cost of living †, Couillard said.
Michel Couillard
“Most of these relocations have remained in the region of origin – 84% of them – and although some are returning, it is not known whether these movements are permanent or whether they represent a real urban exodus. Time will tell what behavior of population migration and use of space will continue.
“As all areas of real estate will be closely watched and ready to respond, property owners and managers need to be flexible in order to accommodate these demand-driven changes in desired use and space. location.”
CRE is made up of 1,000 professionals in 20 countries and territories holding the title of Real Estate Advisor and focuses on commercial real estate, but the organization reports, “2021-2022 Top ten issues affecting real estateâ€, Recognized the interdependence of commercial and residential real estate. The report ranked “housing supply and affordability†6th out of the top 10 issues.
“In the United States, the housing supply was already anemic, but when the pandemic struck, falling mortgage rates and the resulting surge in sales created what is now a historically low level of housing stock. â€Couillard said in a statement.
He pointed to decades of underinvestment and under construction of affordable and market-priced housing that would require “a concerted national long-term commitment” to build more housing of all types to overcome.
“A dire shortage of new construction and prolonged underinvestment has resulted in an acute shortage of available housing to the detriment of the economy and certain segments of the population,†Couillard said.
“The strength of this trend is affecting all regions of the country, creating an underbuilding gap of 5.5 to 6.8 million housing units since 2001. Real estate advisers agree that lawmakers must work to expand the ‘access to resources, remove obstacles and encourage new development involving the private sectors.
Couillard pointed out that a “Not in My History†(NIMBY) mentality was a barrier to housing development which may be in decline.
“We are seeing several legislative initiatives to defeat NIMBYism at the local and national levels as well as an injection of funding for affordable housing,” he said.
“Overall, the light at the end of the tunnel looks more like a bright sunshine of hope that we are finally heading towards an end to affordable housing discrimination than a beacon of an oncoming train.
The other major challenges facing CRE affecting real estate are technological acceleration and innovation; environmental, social and governance (ESG) initiatives; supply chain logistics; Infrastructure; political polarization; economic structural change; Adaptive Reuse 2.0 and Bifurcation of Capital Markets.
The full report is available here.
Send an email to Andrea V. Brambila.
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