Is Working from Home Over? How Shifts in Work Culture Could Impact Property Markets
In recent years, the working-from-home (WFH) model has transformed the way businesses operate and where people choose to live. But is this shift coming to an end? In a thought-provoking episode of the Home Buyers Australia Podcast, hosts Damian Walker and Jack Corbett explore the push to return to the office and its potential impact on regional property markets. Watch the full episode here.
The Origins of the Work-from-Home Boom
How COVID-19 Changed the Workforce
The global pandemic of 2020 brought significant changes to every aspect of life, and the workplace was no exception. Damian and Jack reflect on how, during COVID-19, companies were forced to adopt WFH policies as a matter of survival. With lockdowns in place and offices closed, businesses had no choice but to implement remote work on a large scale.
This period also saw a drastic shift in property market dynamics, particularly in Australia. People left city centers in droves, seeking more space, affordability, and a better work-life balance in regional areas like Wollongong and the Illawarra. Property prices soared in these regions as WFH became the norm, and many believed this would become the new way of working permanently.
The Push to Return to the Office
Why Are Companies Calling Employees Back?
Despite the widespread adoption of WFH, many corporations are now reversing course. Some, including Amazon and the New South Wales government, have started mandating that employees return to the office full-time. This sudden shift has sparked debates about the future of work and raised concerns for those who moved to regional areas under the assumption that flexible working conditions would continue indefinitely.
Impact on Work-Life Balance
One of the key points discussed in the podcast is how the shift back to office life is likely to affect people’s work-life balance. For many, WFH allowed them to live further from their workplace, with the assumption that commuting would only be necessary one or two days a week. Now, with the prospect of a five-day office workweek returning, the benefits of moving out of the city—such as affordability and lifestyle—could be diminished. The question then becomes: will these workers regret their decision to move?
How Will the Return to Office Affect Regional Property Markets?
Will There Be a Regional Market Exodus?
Jack raises the critical question: will the corporate push for office work lead to an exodus from regional property markets? He believes that while this return to office life may inconvenience some, it’s unlikely to trigger a massive sell-off in regions like Wollongong. For many buyers, their decision to move was driven by more than just work flexibility. The lifestyle and affordability offered by regional areas remain attractive, even if commuting becomes more frequent.
Affordability and Housing Supply
The discussion also touches on the importance of affordability, which was a significant motivator for many people moving out of cities. Jack notes that the affordability gap between regional areas like Wollongong and Sydney is still substantial. Even with longer commutes, regional areas offer the opportunity to own a home with more space, something that may not be possible in the city due to higher property prices.
Additionally, housing supply is increasing in regions south of Wollongong, such as the Dapto corridor, where new developments are helping to ease some affordability pressures. Jack remains confident that people will continue to be drawn to regional markets, even if they need to make adjustments to their work situations.
Potential Winners and Losers in the Changing Work Landscape
Small and Medium-Sized Businesses May Benefit
While large corporations might be pushing for a return to traditional office settings, the podcast suggests that small and medium-sized businesses could benefit from offering more flexible work arrangements. Many employees who value work-life balance may choose to leave companies that require them to return to the office full-time, in favor of businesses that offer hybrid or remote options.
Jack and Damian see this as a significant opportunity for smaller businesses to attract top talent by offering flexible working conditions. This is particularly true for working mothers, who often benefit the most from WFH or hybrid arrangements. Returning to a rigid office schedule could disproportionately impact women, pushing many out of the workforce due to childcare responsibilities.
The Impact on Corporate Real Estate
Another topic raised in the podcast is the potential conflict of interest for corporations mandating office work. Many large businesses have significant investments in commercial real estate, and the shift to WFH has seen demand for office space decline. By requiring employees to return, companies may be trying to protect the value of their commercial real estate investments. Damian and Jack speculate that these corporate interests could be influencing the push for a return to full-time office work.
The Future of Property Markets in Regional Areas
Will There Be a Price Adjustment?
When considering the impact of the return-to-office push on property prices in regional areas, Jack doesn’t foresee a significant downturn. While property prices in regions like Wollongong surged during the pandemic, any major price adjustments have likely already occurred.
Jack suggests that the people who moved to regional areas and later decided it wasn’t for them have probably already returned to the city. Now, the property market has found a balance, with people who genuinely want to live in regional areas staying put. He doesn’t expect the return to office mandates to cause a widespread sell-off.
Regional Areas Offer More Than Just Affordability
Beyond affordability, regional areas continue to offer lifestyle benefits that city living can’t match. For many families, the chance to own a home with more space and access to nature is worth the longer commute. Jack and Damian believe that the draw of these lifestyle benefits will keep demand for regional properties strong, even if commuting becomes a regular part of life again.
Moreover, regional areas like Wollongong are seeing infrastructure improvements, such as new hospitals and highway upgrades, which make them even more attractive to homebuyers. While the pace of development could be faster, the ongoing investment in regional infrastructure ensures that these areas will remain desirable in the long term.
Will Employees or Employers Win the Battle?
As the episode draws to a close, Damian and Jack contemplate whether employees or employers will ultimately win the battle over flexible work arrangements. While large corporations are pushing for a return to the office, many employees, especially those with flexible work options, may push back.
Jack believes that flexible working is the future, and that small and medium-sized businesses offering hybrid models will have a competitive edge in the labor market. The corporate push for in-office work may be a temporary setback for WFH advocates, but in the long run, employees may hold the upper hand.
For now, regional property markets like Wollongong remain stable, and the long-term benefits of living outside the city continue to outweigh the drawbacks for many. Whether this balance will shift in the coming years as work culture continues to evolve remains to be seen, but for now, regional areas are here to stay.
Get in Touch
Ready to take the next step? Contact Corbett Property Buyers for expert guidance in navigating the property market, and reach out to Atelier Wealth for tailored mortgage solutions that suit your financial goals. Your journey to homeownership starts here!
For more tips and insights, tune in to the Home Buyers Australia Podcast on Spotify and Apple Podcasts.
