A shift to home office could give 1.92 million U.S. renters (4.5% of renter households) the option to move out of the metropolitan areas where they currently live and buy their first home in a less expensive location.
Fleeing a major city to its suburbs is not always beneficial.
Nearly 2 million U.S. renters who currently cannot afford to buy an entry-level home in their home area could gain access to buying their first home if they take advantage of home office benefits by moving to a less expensive location.
Analyzing the households of renters for whom the monthly payments on a first home in their city are unaffordable, it turns out that they would be able to afford it if they matched prices elsewhere. These people were assigned the likelihood of being able to work from home based on income, the industry they work in, and the type of work they do. Millennials, ages 26 to 40, represent nearly half of the 1.92 million renter households that could buy their own home if given the flexibility to work from home. They are the largest generational group that would benefit from these new options.
Nationally, the typical first home is currently valued at $131,740. But homes of this type in 37 of the nation’s 50 largest metropolitan areas are much more expensive than the national average. The direct consequence is that buying a first home is out of reach for many people, as long as they need to be within a reasonable distance of their physical workplace.
Rethinking the relationship between work and home
Nearly half (43.6%) of U.S. workers are in occupations where home office is at least theoretically feasible, although less than a quarter of these workers telecommute. But the ongoing pandemic has shaken the way workers and their employers think about the relationship between work and home. In the past six months, many companies have discovered that their workforces can function better remotely than originally thought. If home office becomes more of an alternative and companies allow it whenever possible, this could give millions of Americans more choice over their home and home finances.
From the city to the suburbs?
Still, beyond the financial advantages that may be experienced, many renters may choose not to move. They might simply prefer to rent in a big city like Cincinnati, rather than owning in a quieter, rural area of another state. And while it may make sense in theory to move away from a given area in order to own a home, it can be very difficult to uproot and move away from family, friends and valued local cultural institutions (sports teams, schools, museums, etc.).
In many cases, it may be much more likely that current residents will not move far from their city, and instead move from the city to the more remote suburbs, but which allow them to maintain their current way of life.
In Your Real Investment we know the Home Office. We develop our activity with it. We have properties with ideal conditions for you to develop yours.
In Your Real Investment, we always accompany the investor, with a personalized advice to know your possibilities and objectives, offering you the safest and most profitable option for your investment. Just contact us and we will take care of everything.
