The New Home Office: How Remote Work is Shaping Housing Needs

The pandemic ushered in a seismic shift towards remote work for millions of Americans. As companies adapted by allowing employees to work from home, new home office needs and desires emerged. What started as a temporary adjustment has become an embedded part of the modern workforce. 

According to a Gallup study, 59% of U.S. employees were working remotely all or part of the time as of September 2022. As remote work becomes the norm rather than the exception, it influences major financial decisions like where to live and what kind of home to buy.

More Space, More Privacy for the Home Office

One of the biggest drivers of housing needs for remote workers is dedicated office space. Setting up in a spare bedroom, dining room or even a closet is no longer cutting it for many. Instead, home buyers are prioritizing multi-purpose rooms or flex spaces that can serve as dedicated home offices. 

An extra room with a door, good lighting, and minimum noise can vastly improve the remote work experience. It also allows parents who work from home to have boundaries between professional and personal life. This increasing demand for home office space is making an extra bedroom or flex room a must-have for many remote workers.

The Suburban Shift for Larger Homes and Yards

Urban professionals are increasingly ditching crowded cities for the extra space and affordable housing of the suburbs. Remote workers have more flexibility to live further from big city job centers. This new reality has them reprioritizing quality of life factors that are heavily influenced by location, like space, noise levels, and school quality. Ironically, the increasing demand for roomy single-family homes with large yards is making many suburban areas less affordable

Creative Home Office Renovations for Remote Working

For those staying put rather than moving, many are investing in home renovations to create more functional work spaces. Renovated basements, enclosed porches, and outbuildings converted to office spaces are some creative solutions homeowners are using to define work-from-home boundaries. 

Renovating for a dedicated home office can increase the resale value of the property. However, returns will vary based on the type of renovation and local market conditions. Homeowners still need to weigh renovation costs against the long-term value it could bring when they go to sell. 

The home office is being reshaped and re-prioritized by remote work. As this workplace shift solidifies, it will remain an influential force in the housing market and consumer priorities when it comes to homes. Your Thompson Kane home loan partners can help you evaluate remote work needs and factor those into your home financing strategy.