How Work-From-Home Option Impacts Real Estate & Housing Choices

March 13, 2021

Find out how the work-from-home set up has severely impacted the real estate sector, especially in this time of the COVID-19 pandemic.

Lockdowns, quarantine restrictions, social distancing, and other health and safety rules and regulations being implemented to curb the infection caused the rise of work-from-home (WFH) setting and less of the walk-to-work concept.

Work-from-home set up
Photo by Ken Tomita from Pexels

How Work-From-Home Option Impacts Real Estate & Housing Choices

    Due to this trend, a lot of prospective homebuyers had seen the sense of moving into city peripheries. The majority are taking occupancy to rural areas nearby cities since the pandemic hit the world and companies and businesses shifted to doing their work at the comfort of home.

    How the pandemic affected the real estate industry

    This era of uncertainty due to the pandemic and economic turmoil radically transformed the real estate market where buyer and seller’s preferences are changing to accommodate new market realities. Homebuyers decide to relocate to the peripheral areas for bigger homes and a better lifestyle, at the same time, searching for more affordable prices because of the work-from-home option even after the lockdown.

    Previously, the walk-to-work or short drive to work was the “gold standard" of housing. This concept of being employed in and around central corporate workplace hubs because of better opportunities for job growth is popular in the middle class. But this is changing as the WFH setting becomes viable even outside of the metro and central business areas.

    The most prominent new residential real estate trend of the COVID-19 era is the shifting of millennials' new-found preference for buying rather than renting homes. The rise of the WFH culture pushes a majority of millennials to live in more spacious and cost-effective homes in less central areas.

    Buyers’ mostly millennials, change of heart eventually affects the demand and dictates fresh supply even in most peripheries where there is a sufficient supply. 

    Tenants and buyers alike are drawn to choose bigger homes, affordable prices, and more generous open spaces in the peripheral areas to accommodate the new normal in a work-from-home setup.

    Affordability and Quality Living

    In the middle of an ailing economy, job loss, pay cuts, and business shutdowns, the affordability of the WFH environment is an enduring concern. The strong work-from-home trend is also changing real estate consumer preferences. 

    From a rental and purchase perspective, the peripheral areas are more affordable and the cost of living is also a bit lower than in the center or within the city. Because it is still near an urban area, people can still have the lifestyle they used to enjoy in the city, for less. 

    Food, transportation, fuel, and other basic needs are cheaper in rural communities. There are a bounty of local products to enjoy and a much more fresh and lush green environment to roam.

    In the city peripherals, life is a bit stress-free and there is always ample space to unwind without having to worry about social distancing. Let’s admit, the work-from-home setting is not as easy as it seems. 

    It can be as stressful as office-based jobs, but being near the rural environment makes WFH set-up a little more peaceful as you can always go outside to take a walk and have a breath of fresh air, literally and figuratively.

    Renting vs. Buying

    To rent or buy involves many highly subjective factors and considerations. But because real estate buyers are increasingly interested in homeownership post-COVID-19, it is worth calculating what works better with the WFH set-up.

    In some tenants living within city limits, their 5-year rental is equivalent to 27-52 percent of the total property cost in the peripheries of the top cities, therefore, homeownership in the peripheries might be a better option for them.

    Also, with the current home loan interest rates at an all-time low, this might be the right time to consider living outside of the metropolis and invest in a house and lot. In the United States, for example, banks and lenders are offering mortgage rates for as low as 2.3 depending on the buyer’s credit score and loan term.


    If you have enough resources, it is time you evaluate your capacity to avail of a mortgage loan. If you plan to pursue WFH opportunities for a longer period, you might be better off investing in your own space today. It might be a provident move to make your long-term financial and retirement goals a reality.

    How the pandemic and the work-from-home set up affected real estate choices
    Photo by Sharad kachhi from Pexels

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    1. Some great advice here for anyone considering investment. It is amazing how the pandemic has changed situations like these.

    2. This particular developement has been so interesting for me to watch - it has changed how people work so much!

    3. I have noticed more and more people realising that they can work easily from home. This does open up more doors for people as in being able to move out of town etc

    4. It's a very short walk to my office. I am blessed to have a dedicated office (bedroom) within my home.

    5. It is crazy how much things have changed with the pandemic. The housing market is certainly very competitive right now here!

    6. Working from is so much easier and safer considering the situation right now. However, I miss going out and about.

    7. The pandemic has really changed things - I have seen so many houses (including the one we rented) go up for sale since the start!

    8. It's a good time to buy here as far as interest goes. It's not for price though. Rent and Mortgage are both through the roof high.

    9. the housing market definitely has been impacted .. and your post brings all these various aspects to light very well.

    10. Honestly I think most people should work from home. If you have the type of job you can work remotely it should be the norm!

    11. My brother in law is a real estate owner. He does still have his business but does alot of work from home.

    12. Rowena callo Villareno8 May 2022 at 03:26

      Ngayong pandemic talaga dami natin ma realized,Dami din matutunan lalo na pag nasa work form home.Maganda din po talaga investment yung property kasi habang tumatagal mas tumataas yung value.Unlike sa rental yung owner lang ang kumikita.which is pwede naman natin gawin lalo na pag ma enough tayo ipon.

    13. カマネーロ アップルジョイ8 May 2022 at 03:26

      Wow ang galing nman . For me mas okay tlga na bumili ka nlng kysa mag rent kse affordable nman si real estate lalo na ngyong pandemic . And tlgang work home safe tlga lalo na sa panahon ngyon iwas sa mga crowded area ❤️ thankyou for sharing this po (Apple Joy Camañero)

    14. nice nito real state properties gandang investmest para sa future ❤️ pero siyempre dun po tayo sa legit at sure na may babalik tlaga satin, dami na dn po kasing naglipana na scam ngayon kaya maging mapanuri dn po tlaga tayo at dapat sapat dn po ung kaalaman natin pagdating sa usapin na yan ☺

    15. Great investment talaga ang pagkakaroon ng sariling bahay, lalo na po ung quality at affordable tlaga, pero sa ganitong panahon kc parang konte na lang ung may kakayahan tlaga lalo na at halos lahat po ay nawalan ng pagkakakitaan, karamihan po kc tlaga ngayon kapos po sa pera, pero i know naman po na lahat ng to lilipas dn at lahat po tayo makaka survive dn sa pinagdadaanan po nating ito ☺

    16. Hyun Jang Nim8 May 2022 at 03:28

      i agree po, this work from home set up makes priorities different, buyers prefer to settle down on rural areas.
      mas preferred na nila ang bumili ng properties kesa mag rent which is in my opinion mas practical.
      buying a property is a good investment lalo na ngayong times of uncertainty.