The location of one’s job has generally been a major determining factor for where people live. However, with technological expansion has come the rise of telecommuting, freeing some employees from the location-based constraints of their work. According to the latest Home Value Forecast from Pro Teck Valuation Services [1], this changing landscape of the labor force is having a notable impact on home prices in markets across the nation.
“Technology has revolutionized how business is done, allowing workers to escape the office and work from anywhere,” Pro Teck stated with the release of its latest forecast. “This, combined with employment gains and a shift from a labor-based to knowledge-based economy, is impacting home prices across the country.”
Metros such as Cleveland and Pittsburgh are beginning to see increased demand and rising home prices after wallowing in recent years. In fact, after crashing during the housing crisis, Cleveland’s home prices are at record highs, according to Pro Teck.
Cleveland’s economy outpaced both Cincinnati and Columbus in 2017, growing at a pace of 2.9 percent. This spur in growth is due to an uptick in the professional services sector, according to Pro Teck.
Another metro market experiencing home price growth due to the booming professional services sector is Denver. The Denver area has experienced substantial growth over the past few years, and according to Pro Teck, “The groundswell in Denver has spread the telecommuting trend throughout Colorado.”
Greely and Colorado Springs, Colorado both placed on Pro Teck’s 10 hottest core-based statistical areas in July. Greely home prices averaged $340,000, and in Colorado Springs the average home price was $302,000.
Pro Teck expects the telecommuting trend to continue and for it to continue to impact the housing market. Pro Teck anticipates “other lagging metros” will follow in the footsteps of Cleveland and Pittsburgh and “see an uptick in their desirability in the near future.”
In particular, the millennial generation is contributing to the uptick in housing demand in areas that were previously unpopular among young professionals. This generation, which strongly values work-life balance and tends to favor telecommuting, is now the largest generation in the labor force, according to recent data from Pew Research Institute.
Additionally, a large number of the jobs being created now are in the “professional and business services” sector, which lends itself to working remotely.