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Washington, DC CNN –
Housing is less affordable than it has been in nearly four decades. But buying or renting a home may be an option Less According to a recent study by Fannie Mae, it is now economical if it weren’t for the continued impact of remote and hybrid workers as a result of the pandemic.
The study, which was an analysis of Fannie Mae’s monthly national housing survey with questions asked to more than 3,000 mortgage holders, owners and renters between January and March of this year, looked at how remote and hybrid work has fared over the past few years. have turned. and its impact on housing.
According to the report, more people are willing to move to less expensive areas away from offices in city centers than a few years ago. The study found that continued remote and hybrid work is enabling people to move towards housing affordability at a significantly unchanged level compared to two years ago.
The report also found that “affordability” is the most important factor in finding a place to live for both renters and home owners.
At the beginning of the year, 22% of remote and hybrid workers said they would be willing to relocate to a different region or increase their commute. Only 14% of such workers were willing to do so in the third quarter of 2021, which is used as a comparison throughout the study and this was when many workplaces attempted to “return to work” until the Covid- The Omicron version of 19 didn’t push many employers. Planning for that winter.
Workers who are able to break away from living in an area due to proximity to work are able to spread out, which could reduce competition for the historically low number of homes for sale which could drive prices even higher. Can increase
Research has shown that from 2021 onwards, among remote workers, all ages and income groups have become more willing to relocate or live away from their workplace. But younger workers – those between the ages of 18 and 34 – are more willing to stay than those older than them. or commute further distance from their work, with the share of those willing to do so increasing from 18% in 2021 to 30% in 2023.
“We believe that this greater willingness to work remotely may be a sign that some employees are feeling more secure about their remote work status… or may look to another job if their current employer changes its policies.” His ability to find,” wrote. Researchers, in a nutshell.
This is good news for remote workers in a time of extremely low levels of household affordability.
Remote and hybrid work is here to stay. Or, the researchers found, there has been enough time for people to buy or rent a new home.
According to the study, the share of fully remote and hybrid workers has remained surprisingly stable in the post-pandemic era, despite demands from leaders of some major companies that workers need to commute or commute to the office.
In the first half of the year, 35% of respondents worked entirely remotely or with a mixed mix of spending some time at work and some time at home. This was down slightly from 36% in 2021.
While the share of workers commuting to work or office every day was unchanged at 49% in both 2021 and 2023, the share of those working entirely remotely increased from 13% in 2021 to 14% this year.
Homeowners remain slightly more likely to work from home than renters. The study found that people with more education and higher incomes were also more likely to have a work-from-home position, consistent with 2021.
Only 30% of low-income earners, who earn 80% of the region’s median income, could do remote or hybrid work in 2021, and that drops to 27% by this year. Meanwhile 42% of high earners, who make 120% of the region’s median income, were able to work from home in 2021 and that number did not change in 2023.
According to the survey, low-income people – those most in need of access to low-cost housing are found farther from the city core – are also the least likely to work remotely.
With housing affordability hit by rent increases over the past few years, home prices remaining high and mortgage rates reaching 22-year highs, it’s not surprising that there are many factors to consider when choosing a new home. “Affordable” was the top factor, at 36%. This was a huge jump from 2014, the last time this question was asked, when the top thought was “neighbourhood” at 49%.
Both landlords and renters showed an increase in preferring “tenancies”, but the increase was greatest among renters, rising from 21% in 2014 to 46% in 2023.
“The shift in preference for renters is truly remarkable, as not only has it more than doubled, but it also represents a complete reversal of the relative importance of neighborhoods cited as a top consideration by consumers in 2014,” the researchers wrote. ”
Furthermore, despite discussions about relocating for more space, “house size” as a factor in choosing the next home was unchanged and was still more important than “affordable.”
“The significant shift toward affordability as the top consideration among overall survey respondents for their next move is prompting families to find ways to manage the significant increases in mortgage rates, home prices and rents over the past few years,” the researchers said. proves the need.” wrote.
And this is having an impact on where people look for homes and what they prioritize when searching.
The researchers added, “Home affordability may also be one reason why we have seen an increase in remote workers’ willingness to relocate or live away from their workplace, especially given that, historically, dense job markets In the U.S. less travel was considered a premium feature.” wrote.
The report found that suburbs are increasingly where people want to live, part of a trend that has been going on since 2010. And this share is set to increase between 2021 and 2023.
The researchers say that the changes brought about by remote workers to the housing market have a cascading effect on the relationship between housing and the labor market.
The growing share of remote-working renters and homeowners willing to live far from their place of work gives employers access to a broader labor market, which can be useful when attrition rates are high due to a downturn in economic activity. be more
“Having access to a larger labor market when a large employer or industry contracts may also reduce the adverse effect on local house prices,” the researchers wrote.
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