Remote work is the # 1 problem affecting real estate

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According to a new report from The Counselors of Real Estate, the proportion of people working from home full or part time could double forever, affecting homebuyer demand and land use.

Remote Work and mobility will have the most significant impact on the property next year, according to an annual report by The Counselors of Real Estate, a global consortium of commercial real estate professionals and experts.

The coronavirus pandemic and the associated increase in teleworking have led to a spike in migration across the country, which some in the industry call “The Great Shuffle… »This movement is one of the factors that have led to an unprecedented increase in demand from home buyers and an all-time low inventory in markets across the country.

While an average of 32 percent of workers have returned to their offices as of June 18, Michel Couillard, chairman of CRE worldwide in 2021, noted in a webinar on Wednesday that telework could double for good, affecting land use and homebuyer demand.

Source: CRE

“After years … [a] The urbanization trend, the pandemic, has generally caused a shift away from urban centers, especially for those with higher incomes who could afford to relocate, or those with lower incomes who are looking for a lower cost of living, ”said Couillard.

Michelle Cuillard

“Most of these movements have remained within the original region – 84 percent of them – and while some are returning, it is not known how long these movements last or whether they represent a real exodus from cities. Time will tell which patterns of behavior associated with population migration and the use of space will continue.

“As all real estate sectors will be closely monitored and ready to respond, property owners and managers must be flexible to accommodate these demand-driven changes in desired uses and locations.”

CRE is composed of 1,000 professionals in 20 countries and territories qualified as real estate advisors and specializes in commercial property, but according to the organization’s report, “2021-2022 Top Ten Issues Affecting Real Estate, ”Recognized the interdependence of commercial and residential real estate. In the report “Housing provision and affordability” it was ranked 6th among 10 main issues.

“In the US, housing supply was already anemic, but when the pandemic broke, the fall in mortgage rates and the resulting surge in sales created historically low levels of housing stocks,” Couillard said in a statement.

He pointed to decades of underinvestment and underdevelopment of both affordable and affordable housing, which will require “agreed long-term national commitments” for more housing of all types to be overcome.

“The severe shortage of new construction and the lingering investment shortage has led to an acute shortage of affordable housing to the detriment of the economy and certain segments of the population,” said Couillard.

“The strength of this trend is affecting all regions of the country, creating an underconstruction gap of 5.5 to 6.8 million housing units since 2001. Real estate advisers agree that lawmakers need to work to expand access to resources, remove barriers and stimulate new development with private sector participation. ”

Couillard pointed to the “Not in My Past” (NIMBY) mentality as an obstacle to a housing development that could be on the wane.

“We are seeing several legislative initiatives aimed at defeating NIMBYism at the local and national levels, as well as injecting funding for affordable housing,” he said.

“Collectively, the light at the end of the tunnel is more like a bright light of hope that we are finally approaching the end of discrimination against affordable housing than the headlights of an oncoming train.”

Other major CRE issues affecting real estate were accelerating technology development and innovation; environmental, social and governance (ESG) initiatives; supply chain logistics; infrastructure; political polarization; economic structural changes; adaptive reuse 2.0 and bifurcation of capital markets.

The full report can be found here

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