Return-to-Office Migration Could Sink High-Flying 'Remote Work' Home Markets

Markets that heated up during the pandemic, fueled by out-of-town money, are starting to cool, as migration shifts are showing people are wanting to live closer to work.

The 2020-21 march of high-paid remote workers to more affordable locations such as Boise, Austin, Phoenix and several Florida markets such as Miami, took their toll on local home prices, Redfin reported.

This also drove up inflation, as Redfin cited cities such as Miami and Phoenix suffered greatly.

This greater number of homebuyers – most who could afford the high-flying prices – also “intensified competition” for what homes were available. 

Redfin senior economist Sheharyar Bokhari explained in prepared remarks that “locals in those destinations–especially renters–who are watching from the sidelines as home prices skyrocket while their income stays mostly the same.”

Spending Quality Time With the Boss

This contingent, however, could reverse course as more employers are expecting their executive-level workers to be in the office – often located in traditional big, higher-priced urban markets. 

Remote work is and was a huge financial boon for many. But layoffs induced by the recession could leave employees thinking it’s best to have in-person face time with their bosses to show loyalty, better performance and staff engagement.