As we look ahead to 2024, I can’t help but wonder how remote work trends will affect the future of Texas real estate.
What does working from home have to do with the future real estate market? As we all know, widespread sheltering in place during the COVID-10 pandemic led millions of workers to avoid the corporate office and join the ranks of newly minted remote workers.
According to Axios Austin, 16 percent of Texans were working remotely in 2021. Two years earlier in 2019, that number was only 6 percent. Most sites and stats we viewed pretty much threw 2020 out the window as the majority of America was working — or not working — remotely.
Remote Working Isn’t a New Thing
Remote work or telecommuting has been around since the Internet and broadband allowed for large chunks of data to be transmitted and phone lines didn’t have to be used to send files.
Between 2017 and 2018 in the United States, there were over 34 million full-time workers to had the option to work from home or remotely. The overwhelming majority of those who have worked outside of the corporate office have expressed satisfaction and overall improvement in their mental health by working remotely
But is it really that great?
The World Economic Forum argues that working remotely can stifle creativity, blur workplace boundaries, and even stunt career growth for many who stay home. They hypothesize that a hybrid option is the ultimate path for a successful worker and company.
Hybrid Working And Texas Real Estate
The hybrid model of remote working and on-site working has been hailed by some as the best option for the modern, post-pandemic workforce. Therefore, corporations will not bless the moving and migration of their employees to states like Texas from places like California as frequently as we have seen in the past few years, and that could cause real fallout for the Texas real estate market.
As a licensed Realtor, I have helped more than 30 individuals and families move from states such as California, Oregon, Ohio, Georgia, and New York move to Texas specifically because their companies allowed them to work remotely. These people chose to move to Texas for reasons such as climate — social, educational, political, and actual temperature — more affordable housing, and no state income taxes. Besides, doesn’t everyone wish they lived in Texas?
Many Realtors that I interviewed for this article have mentioned they are seeing a slowdown in people moving to the Dallas-Fort Worth area and working remotely. One agent mentioned that a large sale recently fell through at the last minute because the main corporation in California wouldn’t give a remote employee permission to eschew the workplace entirely.
Companies are seeing the benefits of having workers back in the office, or at least having the option of having their employees work a hybrid schedule instead of solely in a home office, sometimes several states away.
A California Realtor mentioned that she, too, is seeing more and more companies hint that they will be recalling workers back into the office in 2024 and won’t guarantee remote workers future employment.
Remote Working in 2024
A once bountiful opportunity for home builders, mortgage lenders, Realtors, and relocation companies might be slowing down in 2024. If companies aren’t giving the option of remote work to their people, many won’t be moving to Texas.
Of course, it won’t completely shut down and the Texas real estate industry will continue to remain strong as many corporations are moving to the Lone Star State themselves. Be on the lookout because sellers, Realtors, and home builders will have to rely less and less on migrating families who can keep their current jobs and work from their spacious home offices in Texas.
Welcome to 2024. Don’t worry, surely interest rates will decline … right? We hope.
