Migration Likely to Increase as Remote Work Becomes Permanent

As the Great Resignation accelerates across the U.S., some companies are offering remote work as a permanent alternative to retain workers who wish to relocate to more affordable or desirable locations. According to John Burns Real Estate Consulting, increased remote work will likely have a substantial impact on the housing market throughout 2022 as migrational patterns leave some markets with smaller resident populations and others with elevated demand.

As buyers move further from offices, demand for part time or second homes in vacation areas will continue to increase, and rising inflation will also sustain high single-family rental demand.

1. Expect more migration winners and losers. State population growth and loss will intensify this year as migrating residents seek affordable homes and higher quality of life.

2. Expect buyer and renter migration further from the office to continue. This can mean relocating in search of value or moving to vacation destinations (often part time or in a second home). We expect more price appreciation in the outlying areas or, said another way, the premium to live near employment to narrow. This does not mean the death of urban areas as, simultaneously, we are seeing people return to the cities.

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