Will Telecommuting Affect Property Values In Cities?
Q: I read an article that more employed people are keeping their jobs, moving to cheaper places to live and telecommuting. Will telecommuting affect property values in both places? Henry, Charlotte, NC
A: The percentage of people living in urban area working from home has increased over 40% in the last decade. Freelancers, consultants are moving to places like Charlotte, Nashville, Indianapolis, Reno and Boise from more expensive cities like New York, San Francisco, Seattle and Chicago because the cost of living is much lower. Ultimately, real estate boils down to supply and demand–so long as there are enough people to take the place of those who move out, people leaving higher priced cities won’t have much of a downward effect on prices. Big cities are attracting more people than they are losing at the moment, however, if net migration reaches a tipping point and reverses itself, lower demand in more expensive cities will lower both property values and rents. Thanks for your question, Henry.
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