It’s no secret that the way we live and work has likely changed forever. This has had far-ranging ramifications throughout the real estate market, and the high-end sector, in particular, has been significantly affected. Going forward, here are a few ways that we can expect the increase in remote work to impact the luxury real estate market.
There’s a phenomenon appearing all across the country as remote workers take full advantage of the ability to live anywhere they please. These locations tend to range in size from small towns to medium-sized cities and offer a high quality of life, often with access to nature and open spaces. Thanks to a workforce that increasingly consists of telecommuters, they have been fittingly dubbed “Zoom towns.”
More than ever, luxury buyers are flocking for properties that cater to their lifestyle. From equestrian estates to ski chalets, working from home has allowed them to relocate to a destination that they truly connect with. As big-name companies increasingly indicate that remote work is the way of the future, there’s no sign that this trend will slow down.
The rise in Second Homes
Another byproduct of this is the changes in the way we use second homes. Rather than going away for a weekend or a few weeks during the holidays, remote workers have the luxury of spending months at a time at a vacation home. While a hotel or the rental property might have been more than adequate before, the benefit of purchasing a second home is now significantly greater for those who can afford to do so.
Millennials Have Arrived
For practically a decade, real estate professionals anticipated the profound effect that millennials would have on the housing market and, yet, it never seemed to come. Until recently, that is. In fact, according to a 2020 report from the National Association of REALTORS®, they now make up the largest share of today’s homebuyers. These days, millennials are making up for the lost time and the rise in remote work has altered where they choose to invest in real estate. Second-tier cities and vacation destinations are proving to be especially attractive to these young, minted homebuyers.