How Remote Work Is Changing Where and How People Buy Homes

The rise of remote work is transforming how people view real estate, changing where they choose to live and work. By 2025, a growing number of U.S. employees —22-23% — worked remotely at least part-time, a blend of fully remote (7.8%) and hybrid (20.9%) schedules. This shift marks a significant departure from pre-pandemic norms, though it falls short of the early pandemic peaks.

The Focus is Moving to Suburban and Rural Areas

Remote work has revolutionized homebuyers’ mobility, prompting many to abandon expensive urban hubs. In the United States, remote workers overwhelmingly favor suburban locales, with 53% relocating to these areas in 2024. Urban destinations attract 30% of remote workers, while 17% opt for rural settings. This shift has fueled unprecedented home price hikes in suburban and rural regions, driven by lifestyle preferences and cost advantages.

Rural and suburban homes have experienced remarkable price growth, with some areas witnessing a surge of 20-30% in recent years as remote workers seek spacious residences equipped with dedicated office spaces. Urban centers continue to draw attention, but the trend towards decentralization is undeniable. The accessibility of remote work is a pivotal factor in this transformation.

The Need for Home Offices and Remote Workspaces 

A home office has emerged as a crucial criterion for homebuyers, with nearly 40% now prioritizing it, up from just 22% prior to the rise of remote work. Today’s buyers seek:

• Multiple quiet spaces for both work and collaboration.
• Soundproof rooms for uninterrupted video calls.
• Reliable high-speed internet, no longer a luxury but a necessity.
• Natural lighting and access to the outdoors.

Priorities to Technology and Connectivity 

Internet speed and reliability are crucial factors for homebuyers, especially as remote work becomes more prevalent. They are drawn to smart home features that boost efficiency in the home office. These include:

• Smart thermostats
• Voice controls
• Enhanced security systems
• Energy-efficient appliances

These technologies not only increase comfort but also productivity, though a robust connectivity infrastructure is still essential.

How Generations Are Reshaping the Market: Millennials and Gen Z

Younger buyers, particularly Millennials and Gen Z, are transforming the housing market with their openness to relocating for affordability and remote work flexibility. Nearly 41% of Gen Z are willing to move, often opting for fixer-uppers or co-buying to enter the market.

This generational shift underscores the importance of affordability, flexibility, and functional homes for younger remote workers, highlighting a significant shift in how they approach housing.

Commercial Real Estate and Office Transformation

The shift to remote work has drastically altered the commercial real estate landscape. By early 2025, U.S. office vacancies soared to 19.8%, and the conversion of offices into residences reached a record 70,700 units for that year.

These conversions primarily transform office spaces into multifamily housing, addressing urban housing shortages and repurposing underused buildings.

Prices and Affordability

Remote work affects housing affordability in two ways. Buyers gain broader access to more affordable communities in suburban and smaller metropolitan areas. Conversely, the influx of remote workers with higher incomes has caused prices in these regions to rise by double digits, making it difficult for long-time residents to afford homes.

On average, remote workers’ housing expenses are 10-33% higher. This is because they often prefer larger or higher-quality properties to accommodate home offices.

Lifestyle and Housing Preferences

Remote workers have clearly defined priorities:

• Outdoor spaces and recreational facilities are crucial.
• Neighborhood walkability and community infrastructure play a key role.
• Our homes feature versatile spaces for both work and relaxation.

Approximately 24% of remote workers report changes in their housing needs since transitioning to work-from-home, with a strong emphasis on quiet and dedicated work environments.

Outlook and Long-Term Trends

Remote and hybrid work models are likely to persist or expand modestly, reinforcing the shift in housing demand. Hybrid setups are increasingly popular, with over 80% of workers globally preferring a mix of in-office and remote work.

The number of digital nomads is growing rapidly. By 2030, it is projected to reach 60 million worldwide. This trend is fueling the demand for flexible housing and co-living options.

Suburban and rural housing markets are expected to outperform urban centers in the next five years. This will be driven by the continued adoption of remote work and evolving lifestyle preferences.