Skip to main content

Remote Work Could Lead To Homeownership For Nearly 2 Million Renter Households

Navi Persaud
Sep 08, 2020
City view of San Francisco

Research from Zillow revealed that remote work has the potential to unlock homeownership for close to two million renter households. The analysis found that those who benefit the most from this are millennials and renters in expensive coastal metros who use telecommunications for work.

"If remote work becomes a bona fide long-term option especially with the pandemic, that could reshape the U.S. housing market by opening up homeownership to people renting in expensive parts of the country," said Zillow economist Jeff Tucker. "However, it's unclear how many people would make the move to buy their first home. Proximity to work is just one of the factors people consider when choosing where to live. Other factors may keep them from moving including proximity to friends and family, cultural and natural amenities, and their kids' schools."

According to the report, the numbers are skewed to expensive coastal metros like San Francisco as 22% of renters priced out of their metro could afford monthly payments on a typical U.S. starter home, an estimate of $725.

"Two-thirds of our buyers are millennials," said Zillow Premier Agent Holly Mellstrom, a Pelham, New York-based associate broker at Julia B. Fee Sotheby's International Realty. "They're looking to put down roots and get more space for their money after high-rise city living. Many have young families and were planning to move to the suburbs in the future, but they're making the move now because they don't anticipate having to commute into the city to work every day."

"The tipping point was envisioning both of us working from home indefinitely alongside our daughter and a second child on the way," said Chris Chan, 40. He and his wife, Eunice Lee, 35, became home buyers during the pandemic, moving from a two-bedroom co-op in Brooklyn to a five-bedroom house in Westchester County, NY. Chan currently works in Connecticut. "We wanted to maintain the balance between space and proximity to the city. We could get more for our money just outside city limits and we're still only 30 minutes from Grand Central Station."

Read more from the report.

Published
Sep 08, 2020
Helping the H.E.L.P.E.R.s

Federal bill poised to open up market to more teachers, first responders

Dec 01, 2023
Fidelity National Financial Hit By Cyberattack

Industry-leading provider of title insurance and settlement services radio silent on reported breach.

Nov 28, 2023
Citizens Bank Bids Farewell To Wholesale Mortgage Channel

In a strategic pivot, the Providence-based banking giant will stop accepting new wholesale mortgage submissions.

Nov 16, 2023
Surprising Surge In Mortgage Customer Satisfaction, J.D. Power Study Reveals

Study found first-time homebuyers were harder to satisfy, customers don't just shop rates.

Nov 16, 2023
Women Continue To Defy Homebuying Challenges, Representing 22% Of The Market, Survey Finds

Young, educated, diverse, and increasingly savvy, women homebuyers navigate homeownership hurdles with determination.

Nov 15, 2023
Better.com Stays Bullish On Industry Disruption Amid Q3 Losses

Despite a $340 million Q3 loss, Better.com's leadership emphasizes cost reductions, automation, and investment in technology.

Nov 15, 2023