A while ago, I wrote an article about how remote work opportunities necessitated by the COVID-19 pandemic could impact the housing market. Well, the numbers are in. According to Zumper’s National Rent Report: June 2020 we are seeing flat or declining rents in each of the 10 priciest rental markets in the country. Wow.
For years, we have seen superstar cities like New York and San Francisco showing phenomenal growth and rental demand. So, what’s happening? Well, we are seeing a lot of change, right now. Unfortunately, this includes record unemployment. However, we are also seeing that the way in which we work is changing. As I mentioned in my previous article, “How Could Remote Work Opportunities Impact Home Buyers”, an increasing number of workers are no longer bound to living in or near the city they are employed in. Many employers are seeing that people working remotely is a viable option for many positions. Employers like Twitter, Square and others are showing signs that there will be an increase in remote work opportunities long after COVID-19 is stabilized and the economy recovers.
For people who are fortunate to have this type of flexibility, the question becomes, Will they decide to continue to pay the high rents? But, of course, why would they? For many people who felt priced out before, working remotely could put homeownership in reach.