Policy Brief: How Remote Work is Affecting Real Estate Markets

The widespread adoption of remote work is reshaping urban real estate markets by reducing demand for office space and increasing demand for residential properties in less dense, more affordable areas. This shift is leading to a revaluation of real estate prices, with significant declines in office rents and values in major urban centers and rising residential property prices in suburban and rural areas. The long-term effects include the potential for more dispersed urban settlement patterns and a reevaluation of city planning and economic strategies. Cities must adapt to these changes by developing new policies that address the evolving needs of both residents and businesses. This includes leveraging technology to support hybrid work models, enhancing urban amenities to attract footloose workers, and promoting sustainable development practices to ensure resilient and inclusive growth in the post-pandemic era.