Real estate: perceptions & trends

Mayflower recently surveyed Americans moving over the last two years, and those planning to move within 24 months, to find out their perceptions and attitudes about relocating. Inflation is the leading theme across the Mayflower 2022 “Finding Home” study for future and past movers. In fact, 91% said the cost of living is their biggest concern with 84% saying affordable housing is next. 57% said they were going to cut back on their discretionary spending due to inflation with 46% expecting a recession to last 2-3 years.

COVID accelerated the “Work from Anywhere” movement and this is driving the migration from the Midwest and Northeast to the West (30%) and the South (50%).

Despite lower affordability, increased rents and higher home prices, movers continue to push forward with their plans. These migration trends started in 2020, accelerated in 2021 and now are continuing into 2022. This has significant implications for regional economies, job growth and real estate.

The Mayflower study supports data from the 2021 US Census Bureau’s National and State Population Estimates. The graphic shows states in the Northeast and Midwest (and California for the 1st time) experienced population declines while the West and the South saw their populations grow.

The Mayflower study showed the number one reason influencing the relocation to a new area was the cost of living. They simply wanted to move to a less expensive area. Generally, the most expensive areas to live in the United States are the cities. If an employee doesn’t have the need to be in the office, the opportunity to move away from a city or to another state presents the opportunity to reduce their housing costs.

The COVID driven trend towards work-from-home or work-from-anywhere remains robust. Research by ITAM, Stanford and the University of Chicago show 15% of full-time employees are fully remote, 30% are in a hybrid arrangement and 55% are full-time on site.

Source: WFH Research

There is a robust conversation occurring between companies wanting workers to return to full-time on site and workers preferring a hybrid/full remote option. While some of the return-to-work mandates are having an impact, the fact is that employers and employees have learned work can be done remotely. This enables workers to have wider range and less costly housing choices. With the demand for workers showing almost two jobs open for every worker, it’s unlikely this dynamic will change any time soon.

Disclaimer: This post is sponsored by Mayflower.