Americans who bought large rural homes during COVID are now selling up and returning to cities as more employers end work from home rules

Americans who purchased expansive rural homes during the pandemic are now putting them on the market and returning to urban areas as companies rescind work-from-home policies.

When the COVID-19 pandemic struck in 2020, more than 61 percent of people transitioned to remote work, prompting homeowners to seek larger residences with additional space for both living and working.

Return-to-work policies are prompting approximately one in ten U.S. homeowners to consider relocating, as indicated by a housing survey conducted by Redfin in May and June 2023.

With more companies instituting return-to-office directives, employees are faced with the choice of selling their spacious suburban and rural homes to return to the office or maintaining their pandemic lifestyle and seeking new job opportunities.

Major corporations like JPMorgan, GEICO, and HSBC have instructed their employees to return to the office for at least a few days a week, marking the end of almost three years of remote work for their staff.

In Boise, Idaho, a real estate agent shared that a couple of clients are selling their home after just one year because their Seattle-based employer is mandating a return to the office. Consequently, they are now seeking to live closer to the city they left to shorten their daily commute. This situation is becoming a reality for some Americans who sought refuge in suburban and rural areas during the pandemic.

This particular couple is likely to sell their home at a loss as they purchased it during the peak pricing period in the aftermath of the pandemic. The real estate agent, Shauna Pendleton, explained, "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. Their new house in Seattle won't be anything close to the size of their property in Boise, and their mortgage rate will be much higher."

Donna Rutter, a 59-year-old who bought an 11-acre ranchette in the Texas community of Rocky Creek Ranch three years ago, has now listed her dream home for $1.75 million. The call to return to the office lengthened her daily commute to 45 minutes each way. Rutter, who owns her accounting firm, explained, "Small businesses weren't really set up to work remotely. My clients want me in the office. They want to meet with me."

Seattle-based real estate agent David Palmer noted a 10 percent increase in inquiries since the beginning of 2023 from clients hoping to move closer to the city due to their jobs requiring in-person presence.

Data from the National Association of Realtors indicates that 16 percent of existing home sales are now for vacation properties, down from a peak of 22 percent in January 2022. However, this figure remains above the 14 percent average from late 2015 through the first half of 2020.

A report from mortgage services firm Optimal Blue, cited by Reuters, reveals a 75 percent decline in vacation home sales in tourist hotspots such as Hilton Head Island, South Carolina, and Lake Havasu City, Arizona, this year. This shift suggests that Americans are no longer as keen on spacious getaway houses in typical vacation destinations, which were in high demand during the COVID-19 pandemic.