As the world returns to some semblance of normalcy after the COVID 19 pandemic, we are seeing ways real estate may be impacted, on both a national level and a local level.
A recent article for Realtor Magazine notes that a third of employees now want to work from home. In fact, even though costs have risen in some respects, many employees find this tradeoff worthwhile. The article states, “‘Surprisingly, average expenses have gone up for people working from home, but it’s a trade-off most are happy with,’ says Ted Rossman, an industry analyst with CreditCards.com. ‘Most workers seem content to skip the commute and potentially work in their pajamas, even if it means spending more on food and utilities’” (https://magazine.realtor/daily-news/2020/06/12/a-third-of-employees-want-to-work-from-home-permanently). The majority of employees, according to this particular survey, would prefer a hybrid office setup, working both from home and an office. With employers considering remote work options as well as more space within offices, this will no doubt impact the commercial real estate industry.
Last week we mentioned that Durango may now be considered more as a location to live based on changes in the working environment nationwide. We would expect workers with the flexibility to work remotely now consider locations such as Durango, which offer a smaller community and an outdoors lifestyle. Additionally, we expect to see homebuyers’ preferences change to accommodate a work-from-home lifestyle. Separate office space may now be a higher priority as more workers adjust to working remotely, as well as other home features that contribute to a home office.
In terms of investments, a recent poll from Gallup indicates real estate continues to top Americans’ favorite investments. “Meanwhile, Americans are less likely to view stocks or mutual funds as the best long-term investment, particularly waning after the COVID-19 pandemic struck the economy this spring. Twenty-one percent of Americans picked stocks as the best investment, down 6 percentage points from a year ago and at the lowest reading since Gallup started collecting such data in 2012” (https://magazine.realtor/daily-news/2020/06/16/real-estate-continues-its-streak-as-favorite-investment).
In each of these areas, we see positive changes and growth for real estate, which we are glad to see in the midst of this time. On a homebuying level, mortgage rates hit another all-time-low for the fourth time this year, so it’s a fantastic time to enter the real estate market or consider refinancing. As always, we would love to discuss your individual goals or the market as a whole as we adapt to the changing real estate market.