10% of U.S. home sellers are former remote workers who are being called back into the office
10% of U.S. home sellers are former remote workers who are being called back into the office.
Return-to-office policies are becoming a significant factor in the real estate market, as revealed by a survey from Redfin.
The survey indicates that approximately 10% of home sales are influenced by employees compelled to end remote work.
A growing number of companies are now mandating employees to return to the office for at least a few days each week.
The trends in remote work are undergoing a reversal, leading some individuals to sell their homes, according to Redfin's findings.
Around 10.1% of individuals likely to relocate in the next year are doing so due to a return-to-office policy, the survey noted.
During the pandemic, as remote work gained popularity, some employees opted to leave major cities and invest in properties in mountain towns and other remote areas. However, an increasing number of companies are now insisting that employees spend a portion of their week working in the office.
This shift is forcing some employees, who had moved away from major cities to buy homes elsewhere, to confront a challenging decision.
"Return-to-office mandates are forcing some people to choose between selling their home at a loss or losing their job," stated Redfin.
The survey highlighted a scenario recounted by real estate agent Shauna Pendleton in Boise, Idaho, a favored destination for remote workers from major cities during the pandemic.
Pendleton shared that her clients are selling their home, purchased just a year ago near the housing market peak, as they need to return to Seattle for in-person work.
"My sellers both work at the same company, which told them they have to be in the office three days a week or they'll lose their jobs. They have six months to make the move. They'll probably have to take a $100,000 loss on their home," Pendleton explained.
Companies implementing return-to-office policies include Amazon, Apple, Alphabet, Goldman Sachs, JPMorgan, Meta, and others.
For some homeowners, the decision is made more challenging by the fact that mortgage rates have doubled over the past year, surpassing 7%, significantly limiting affordability, particularly in higher-priced cities.