Few things in recent history have changed the world as we know it as much as the COVID-19 pandemic. Daily routines, travel, work, dining, and entertainment—among many other aspects of life on a global scale—were thoroughly turned upside down in a matter of months. And worse, countless families were left dealing with the hospitalization or loss of loved ones. Weddings were postponed. Funerals were canceled. Our daily lives were paused and rearranged, jobs were lost, and people were suddenly struggling to make ends meet.
A number of trends emerged from the lockdowns and social distancing mandates put in place at the beginning of the pandemic, including contactless food delivery, fashionable masks, a spike in online shopping, and even a new appreciation for toilet paper. One trend that isn’t showing signs of stopping anytime soon is working from home. With so many employees forced to work remotely, businesses quickly adopted virtual meetings and ways for workers to do business entirely over an internet connection. Some workers reported less distractions and increased productivity, and without the need to commute, gas consumption dropped significantly along with the price per gallon, less time was wasted sitting in traffic, less car accidents and daily wear and tear on vehicles led to lower insurance rates and car maintenance costs, and with less emissions, many urban areas reported better overall air quality. One downside to working remotely was the basic human need for socialization, but now with vaccinations and herd immunity taking effect, the worst of the pandemic seems to be behind us and the benefits of working from home outweigh the need for interacting in person with co-workers, because other aspects of daily life such as social gatherings, attending concerts, eating out, and going on vacation have resumed.
Many companies are adopting permanent work-from-home policies as a result. Quelled concerns about lower productivity and loss of revenue have accelerated the remote work trend and have arguably solidified it for the future well beyond 2022. The implications for corporate America are fairly apparent, but how are work-from-home policies impacting the nation’s real estate market, and is Merced County real estate being similarly affected? Suddenly huge swaths of workers have almost no limitation as to where they can live and work. As long as they have a secure internet connection, there’s no need to commute to and from work. Let’s review how remote workers are impacting the real estate market on a national level, and explore a more specific analysis of the Merced County real estate market.
Expected Housing Market Changes
After the COVID-19 pandemic, 58.6% of the U.S workforce is currently working from home.1 Before the pandemic swept up the workforce, that number was only 17%.2 Pre-pandemic, experts had already predicted this number to increase as we entered the new decade, but things were greatly accelerated thanks to the pandemic. Because of this vast increase in working from home, many remote workers are looking for homes farther from previously dominating job hubs in bigger cities. Without the need to commute to a city, employees have the option to live farther away from their jobs, opening more opportunities for real estate and inevitably increasing the value of homes in these areas.
Additionally, with professional life suddenly integrating with home life, many new and prospective homebuyers are paying closer attention to the need for a home-office space and are moving away from traditional media rooms, leaning more toward shared workspaces for relatives or roommates. Overall, experts predict increases in property demand and price for homes located farther from traditional job hubs as well as homes previously only considered for vacation or retirement living. This poses a huge opportunity for new construction, home remodels, and higher real estate values for locations away from metropolitan areas.
Expected Effects on Merced County
Largely, Merced County is expected to follow these national trends. Eventually, properties in California’s Central Valley are expected to receive a boost in value as more employers implement work-from-home policies and the need to live near major job hubs lessens. This prediction is backed by statistics analyzed by Findstack, where a group of companies surveyed reported that approximately 73% of their departments were expected to employ remote workers by 2028, and nearly 99% of employees indicated the desire to work remotely for the remainder of their careers, even if only on a part-time basis.
In conclusion, the continuing work-from-home policies across the country will certainly have an effect on the real estate market in Merced County in some way, even if the impact is slow to take hold. Early predictions lean toward an almost across-the-board increase in price and demand for Merced County properties due to the area’s appeal. For now, it’s an ideal location for commuters and remote workers alike due to lower housing prices and cost of living compared to big cities. Perhaps those who have visited here before and fallen in love with the beautiful Central Valley of California will decide to stay here on a permanent basis, especially if they have the option to work from home and don’t have to commute to San Francisco, San Jose, or even as far away as Southern California. If you’re interested in exploring homes for sale in California’s beautiful Merced County, reach out to Soldavi today!
Sources:
1 Steward, Jack, “The Ultimate List Of Remote Work Statistics for 2022,” Findstack, March 10, 2022, https://findstack.com/remote-work-statistics/
2 Statista, “Change in remote work trends due to COVID-19 in the United States in 2020,” 2022, https://www.statista.com/statistics/1122987/change-in-remote-work-trends-after-covid-in-usa/
3 Steward, Jack, “The Ultimate List Of Remote Work Statistics for 2022,” Findstack, March 10, 2022, https://findstack.com/remote-work-statistics/S