Here's What Housing Economists Say About Remote Work and Housing Inventory

Remote work, at least part time, will be a trend shaping the future of the housing industry permanently, according to housing economists and real estate experts. Zillow’s Quarter One Zillow Home Price Expectations survey questioned more than 100 industry experts on their views of the rental market, inventory, expectations for home value growth, and more. Of those surveyed, 95% said an increased preference to work remotely at least part-time is a permanent shift. Remote working has allowed Americans to reconsider their living situations due to greater flexibility, resulting in home prices appreciating and inventory to dip. But experts also say that housing inventory will meet demand at the end of 2021 and into 2022.

The experts said they believe the pandemic has permanently altered consumer preferences regarding where office work gets done. Nearly all respondents said the consumer preference for working from home at least part-time will be an enduring legacy of the pandemic. Roughly a third of them (36%) said the recent shift to full-time work from home in favor of full-time in-office work will prove permanent.

Panelists were more evenly split regarding the permanence of other pandemic-driven shifts in attitudes towards where we live and the ideal size of our homes. When asked about Americans’ preference for living in the suburbs over urban areas, the same share of ZHPE panelists said the shift was permanent as said the shift was temporary (46%). The results were similar when asked whether consumer preference has changed in favor of proximity to smaller cities over larger cities, or larger homes in favor of smaller homes.

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