With the Covid-19 pandemic and the shift towards working from home, the housing and Cape Coral commercial real estate market has recently undergone some interesting changes. People think differently about where they want to live, the types of properties and home features they’re interested in, and how they work with a Fort Myers real estate broker to approach the home-buying process. In this article, we’ll take a look at just how much the real estate market has changed for Cape Coral real estate agents and everyone else in the past few years as people’s jobs transition from the office to the home.
Higher Demand and Higher Prices
Remote work may be responsible for the surge in housing demand and home prices during the pandemic. A study from the National Bureau of Economic Research (NBER) found that more than half of the real estate pricing surge may be due to increased housing demand. Researchers also found that areas with the highest remote work rates also had higher home price increases.
Moving Out of Cities and Into Suburbs and Rural Areas
As jobs become less dependent on geographical location, many workers have more freedom to choose where they live based on more than just proximity to the office. Many workers have left large urban centers, like San Francisco, Miami, and New York City, for nearby suburban areas. More rural communities have seen an increase in new residents, too. Outside of large cities, homebuyers can afford more space for less money while enjoying a higher quality of life overall.
Declining Mobility Rate
Though many are searching for new homes, most people are staying where they are. The mobility rate is the percentage of people who moved to a new residence in the past year. According to the US Census Bureau, only 27.1 million Americans reported living in a new place in 2021, representing an 8.4% mobility rate. This is the lowest documented rate in over 70 years. This low rate is partially due to an aging population and many not wanting to move during the height of the pandemic. But remote work may be partially to blame as well. Since employees no longer have to live close to their workplaces, there’s no reason to move if their job changes.
Demand for Different Housing Features
The rise of remote work has resulted in substantial changes in the real estate market– and even the types of homes people are looking for. When working from home, having a separate space for work is essential. Homebuyers are talking to their Fort Myers real estate broker to search for larger properties with dedicated office spaces or extra bedrooms they can convert into workspaces.
Ultimately, the real estate market is changing quickly as more people work from home. Despite a low mobility rate, people are moving out of cities and into suburbs and rural areas, leading to an increase in demand for housing and, in turn, a rise in house prices. Even the types of homes people search for are changing, with an increased emphasis on larger properties with dedicated work areas.
Are you planning to buy or sell a home soon? Whether you’re looking for a new house or browsing for a Cape Coral warehouse for sale, contact Alec Salameh to learn how our Fort Myers real estate broker can assist you.