Return to Work Is Coming for Your Pandemic-Era Home
Some sellers are putting properties on the market to be closer to the office, as companies shift back to in-person work and hybrid schedules
Some sellers are putting properties on the market to be closer to the office, as companies shift back to in-person work and hybrid schedules
After three years of living in her dream home in a Texas community called Rocky Creek Ranch, Donna Rutter is giving it up to move closer to the accounting firm she bought in the nearby city of Fort Worth.
Rutter spent most of her 30-year career as a CPA for large firms in Dallas and Fort Worth. Even before Covid, she had a work style that allowed her some flexibility. She didn’t have a central office she went to every day, but she had clients she travelled to visit on site. That schedule allowed her to build a home in Rocky Creek, about 20 minutes from downtown Fort Worth.
Then the pandemic hit and she gave up travel and went fully remote. Now, with the pandemic-influenced lifestyle waning and the importance of being in the office growing, she has been drawn back into the workplace but for different reasons. In 2021, she bought her own firm, renamed Donna R Rutter CPA PC, and started working from her desk each week.
“Small businesses weren’t really set up to work remotely,” said Rutter, 59. “My clients want me in the office. They want to meet with me.”
The only problem, she said, was that her office is near central Fort Worth, making her commute about 45 minutes each way. She decided that is too long, and is moving closer to her new business. Her roughly 11-acre ranchette is now on the market for $1.75 million.
Rutter is just one of many homeowners making the decision to relocate closer to work.
According to a September report by Redfin, about 10% of home sellers in the U.S. are looking to move because of return-to-work policies, indicating that after more than three years of remote-work policies dominating behaviour in the housing market, the in-person, 9-to-5 lifestyle is picking up some steam. Average office attendance last week was 50.5% of the pre pandemic level in February 2020 across 10 major U.S. cities, including New York and San Francisco, according to Kastle, which tracks security-badge swipes into the buildings they secure.
In May and June, Redfin’s study surveyed more than 600 people across the country who were likely to sell and move within the next year, according to chief economist Daryl Fairweather. The findings follow more than a year of announcements from major corporations—including Apple, Walt Disney, Google and Tesla—calling remote employees back to the office.
In Seattle, local real-estate agent David Palmer of Redfin said that so far this year, he has received about 10% more inquiries than in 2022 from clients looking to relocate closer to the city because their jobs require a hybrid work schedule.
“I have a buyer who moved out of the city during the pandemic. He now works for Google and, long story short, he needs to commute three days a week and it’s about a two-hour commute each way,” he said. “So he’s actively looking to buy something.” Palmer’s client didn’t respond to a request for an interview.
Google has announced it will consider office attendance records in performance reviews, The Wall Street Journal reported in June. The company began calling employees back to the office a few days a week in April 2022.
Austin-based real-estate agent Matt Holm of Compass said that since Elon Musk called his employees back to the office, he has had several clients looking to move to the city to work for, or with, Tesla, where the company is headquartered. Last year, Musk told Tesla employees they are required to spend at least 40 hours a week in company offices, The Wall Street Journal reported. He sent the same message to employees of his rocket company, Space Exploration Technologies Corp., or SpaceX, which also operates in Texas.
Finding affordable housing in Austin for some of the incoming workers can be tough, Holm said. Those who can’t, often settle down in nearby markets, such as San Antonio and Killeen, because they are cheaper, he said. In October, the median sale price in the Austin metro area was about $444,000, down 6.5% from October 2022, Redfin said.
But for the employees who can afford Austin prices, Holm added, the demand has been a welcome boost to the housing market, which has seen slowed sales due to rising interest rates. On average, homes in the Austin metro area are sitting on the market for 63 days, Redfin stated, up from 53 days during the same period in 2022.
The sentiment around relocating for in-person attendance is mixed, Palmer said, “I have some clients who don’t mind, others who are a bit peeved.”
Rutter and her husband, Steve Lewis, 61, built their roughly 4,000-square-foot ranchette in late 2019. They outfitted it with vaulted ceilings, a heated saltwater pool, a dog shower and an outdoor kitchen, among other features.
While the home they have bought closer to the city is just 20 minutes from her office, it is about 1,000 square feet smaller and sits on about a third of an acre. She declined to disclose the purchase price. “We don’t have as much room,” she said, but added she is excited for a change and a shorter commute.
The couple’s ranchette is garnering interest from potential buyers, according to their listing agent, John Giordano of Compass. Rocky Creek Ranch is a desirable area because of the steady demand for ranchettes and because of its proximity to downtown Fort Worth, he said, adding that homes there rarely come up for sale.
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The Republican nominee says it would help bring down home prices, though these buyers account for a fraction of U.S. home sales
Former President Donald Trump said he would ban undocumented immigrants from obtaining home mortgages, a move he indicated would help ease home prices even though these buyers account for a tiny fraction of U.S. home sales.
Home loans to undocumented people living in the U.S. are legal but they aren’t especially common. Between 5,000 and 6,000 mortgages of this kind were issued last year, according to estimates from researchers at the Urban Institute in Washington.
Overall, lenders issued more than 3.4 million mortgages to all home purchasers in 2023, federal government data show.
Trump, the Republican presidential nominee, made his comments Thursday during a policy speech to the Economic Club of New York in Manhattan.
Housing remains a top economic issue for voters during this presidential election. Rent and home prices grew at historic rates during the pandemic and mortgage rates climbed to levels not seen in more than two decades. A July Wall Street Journal poll showed that voters rank housing as their second-biggest inflation concern after groceries.
Both major candidates for the 2024 presidential election have made appeals to voters on housing during recent campaign stops, though the issue has so far featured more prominently in Vice President Kamala Harris ’s campaign.
Trump has blamed immigrants for many of the nation’s woes, including crime and unemployment. Now, he is pointing to immigrants as a cause of the nation’s housing-affordability crisis. Yet some affordable-housing advocates and real-estate professionals said Trump’s mortgage proposal would fail to bring relief to priced-out home buyers.
“It’s unfortunate that given the significant housing affordability crisis that is widely acknowledged across most partisan lines, we are arguing about a minuscule segment of the market,” said David Dworkin, president of the National Housing Conference, an affordable-housing advocacy group.
Gary Acosta, chief executive of the National Association of Hispanic Real Estate Professionals, a trade organization, said, “It’s just another effort to vilify immigrants and to continue to scapegoat them for any issues that we have here in the United States.”
A Trump campaign spokeswoman didn’t immediately respond to a request for comment.
Undocumented immigrants in the U.S. can obtain an obscure type of mortgage designed for taxpayers without Social Security numbers, most of whom are Hispanic. The passage of the USA Patriot Act of 2001 allowed banks to use identification numbers from the Internal Revenue Service as an alternative to Social Security, extending a number of financial services to people without legal status for the first time.
Mortgage loans for undocumented immigrants are typically higher interest and borrowers include legal residents who have undocumented spouses, Acosta said. Lenders include regional credit unions and community-development financial institutions.
In his speech, Trump said that “the flood” of undocumented immigrants is driving up housing costs. “That’s why my plan will ban mortgages for illegal aliens,” he said.
Trump didn’t elaborate on how he would enact a ban on such loans.
Though mortgages for undocumented people living in the U.S. are relatively rare, residential real-estate purchases by foreign nationals are big business , especially in expensive coastal cities such as New York and Los Angeles. These sales have declined in recent years, however.
Close to half of foreign purchases are made by people residing abroad, while the other half are made by recent immigrants or residents on nonimmigrant visas, according to an annual survey by the National Association of Realtors. Many affluent foreigners buy U.S. homes with cash instead of obtaining mortgage financing.
In his Thursday speech, which focused mostly on other economic matters such as energy and taxation, Trump proposed other measures to bring down housing costs, including cutting regulations for builders and allowing more building on federal land. Similar ideas appeared in the housing policy outline Harris released in August .
The former president has spoken on housing-related issues in speeches at other recent campaign stops, including in Michigan last month, where he touted his administration’s 2020 overturn of a policy that had encouraged cities to reduce racial segregation .
“I keep the suburbs safe,” Trump said. “I stopped low-income towers from rising right alongside of their house. And I’m keeping the illegal aliens away from the suburbs.”
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