Research Shows Soaring Home Prices Largely Caused by Remote Worker Migration

Employer Location Untethering

Stay-at-home orders didn’t negatively impact work productivity for many given the connected nature of today’s world. As the pandemic dragged on, many Americans acclimated to not going into the office, and many began to question the need to be geographically close to their employer.

Researchers from the Federal Reserve Bank of San Francisco and the University of California, San Diego have studied how the pandemic influenced where people choose to live, and the impact on the housing market. A noteworthy number of Americans opted to swap their house for something larger in a warmer climate.

Worker Migration Drives Up Prices

The same research revealed people moving during the pandemic accounted for more than half of the approximate 24% increase in home prices during that period.

The places that saw the biggest price hikes were in those cities that attracted remote workers. Cities that boast warm weather such as Austin, Phoenix, and San Diego experienced some of the largest home price increases in the US. And valuations escalated fast – Austin saw the median single-family home price explode by 26% from 2020-2021.

Sun and Space

For those rethinking where they live, the researchers found common themes driving where they chose to relocate.

Space was one issue. With more time at home people wanted more room for an office. This made cities with lower population density attractive. The other factor was the weather. Without the employer’s office serving as an anchor, cities with sunshine were favored. Industry also was a factor as some jobs are more conducive to remote work, such as the tech sector.

Essentially, more Americans evaluated where they lived based on lifestyle rather than employer location. If the trend continues, supply and demand dynamics could produce some uneven results in the housing market.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22060103