Remote Work Retreat

Remote work has reshaped the way we live, work, and buy homes—but the tides are shifting. While fully remote workers surged during the pandemic, recent data shows a steady decline. In 2023, 13.8% of U.S. workers remained fully remote, down from 17.9% in 2021. Despite this drop, remote work remains far above the 5.7% rate seen in 2019.

This slow return to the office is reshaping housing markets, particularly in regions that once benefited from the remote work boom. Let’s explore what’s happening and what it means for the future of real estate.

Remote Work Declines In 39 Of The 40 Largest Markets

A sharp pullback in fully remote workers has affected nearly every major metro area. Here are the lowest and highest remote work markets in 2023:

Markets With The Lowest Remote Work Levels:

• Providence-Warwick, RI-MA: 10.8%
• Riverside-San Bernardino-Ontario, CA: 11.4%
• Virginia Beach-Norfolk, VA-NC: 11.8%
• Las Vegas-Henderson-Paradise, NV: 12.0%
• Houston-The Woodlands-Sugar Land, TX: 12.6%

Markets With The Highest Remote Work Levels:

• Austin-Round Rock-Georgetown, TX: 24.9%
• Raleigh-Cary, NC: 24.5%
• Denver-Aurora-Lakewood, CO: 22.3%
• Washington-Arlington-Alexandria, DC-VA-MD-WV: 22.0%
• Charlotte-Concord-Gastonia, NC-SC: 21.5%

What’s Happening? The data shows a dramatic drop in work-from-home (WFH) rates across nearly all markets. Cities like San Francisco, which saw 35% fully remote workers in 2021, have dropped to 21%. Only Phoenix-Mesa-Chandler, AZ bucked the trend, maintaining steady WFH rates at 19%.

Also Read: Where Gen Z Wants To Reside – The Top Cities For Young Adults

Why Remote Work Is Slowing

Big corporations are leading the return-to-office charge. Tech giants like Amazon and Starbucks have implemented stricter in-office mandates, with Amazon requiring corporate staff to return five days per week starting January 2024. The shift comes as companies seek better collaboration, innovation, and cultural connection among employees.

Key reasons for the decline:

• Economic pressures are giving employers more leverage to pull workers back.
• Companies want to improve teamwork and productivity through in-person interaction.
• Hybrid models are replacing fully remote setups in many sectors.

Also Read: How Smart Home Technology Is Redefining High-End Real Estate

What It Means For Housing Markets

The rise—and subsequent dip—of WFH is reshaping housing demand across the country. Here's how:

Markets Vulnerable To WFH Declines

“Zoomtowns” like Austin, Boise, and other cities that thrived on WFH arbitrage are at risk. If more workers are forced back to offices in urban cores, these markets could see slowing demand and potential housing corrections.

Deep Suburban & Exurban Markets Could Stay Strong

While fully remote work is shrinking, hybrid setups still push buyers toward deep suburbs and exurbs. These areas offer affordability, space, and proximity to major metros, making them resilient to WFH declines.

Office Real Estate Faces Continued Challenges

Even with workers heading back to offices, the hybrid trend has kept office utilization below pre-pandemic levels. This will likely sustain strain on commercial office real estate for years to come.

Also Read: 15 Home Staging Tips To Sell Your Home Fast & For Top Dollar

The Bigger Picture: WFH Is Here To Stay (In Some Form)

Even as remote work declines, it’s not going back to 2019 levels. Employers recognize that hybrid and flexible arrangements are essential for attracting and retaining talent. This ensures WFH remains a long-term tailwind for suburban and exurban housing markets, especially those with limited homebuilding.

Key Takeaways:

• The percentage of remote workers in 2023 (13.8%) remains far above 2019 levels (5.7%).
• The future is hybrid: WFH won’t disappear entirely, but fully remote setups are increasingly rare.
• Housing markets in deep suburbs and affordable areas are positioned to thrive.

Wrapping It Up

The remote work boom is waning, but its impact on housing markets is far from over. While the pullback could hurt high-flying Zoomtowns, hybrid work models and a permanent shift in workplace expectations will continue to shape where and how people live.

For homeowners, understanding these trends is crucial for navigating today’s real estate landscape. For workers, it’s a reminder that flexibility—while reduced—still holds value in modern employment.

Also Read: Important Pointers That All First Time Homebuyers Should Know