Remote and hybrid working arrangements have shifted in recent years, with 36.3% of Australians working from home in 2024. As these flexible working options become more prevalent, employees are reevaluating their living arrangements, leading to notable changes in the real estate industry. Here are some of the ways in which remote work is changing the housing market:

The Rise of Suburban and Rural Living

For those working from home, there is no longer a need to live within a suitable commuting distance to your workplace. This has led to an increased demand for properties in suburban and rural areas, as they are likely to offer additional rooms suitable for home offices and outdoor spaces.

The migration away from urban areas is likely to cause a notable decline in home prices due to shifting buyer preferences and decreased demand. 

Evolving Buyer Preferences

Remote work has changed what buyers seek in homes. Smart home offices, flexible spaces such as offices that convert into guest rooms, access to high-speed WiFi, and outdoor spaces have become a priority. These evolving preferences have influenced home design trends and real estate marketing strategies.

Commercial-to-Residential Conversions

The decrease in demand for office spaces has prompted initiatives to convert commercial properties into residential units. In Australia, there's a push to transform unused commercial spaces into homes to address housing shortages in urban areas.

There are also a range of benefits for commercial-to-residential conversions, including faster completion times, lower costs, enhanced sustainability through reduced construction waste, and the regeneration of urban areas. 

Final Thoughts

As remote and hybrid work solidifies its place in the professional landscape, the demand for homes and designs that support this flexible lifestyle is expected to persist. Real estate professionals must stay on top of these changes to effectively meet the needs of their clients.