Google and several other Bay Area companies' decisions to transition from fully remote work to hybrid work models have prompted concerns among employees. The shifts are not only expected to influence daily routines but are also likely to impact the wider local real estate markets. Drawing from my personal experience as an equity trader at Fisher Investments, where I maintained a schedule of 5:30am to 2:30pm daily for over 6 years without the option of remote work, I understand the challenges that lie ahead. Employees returning to offices will struggle with lengthier commutes, an increase in car insurance and maintenance costs due to added mileage, and perhaps most dishearteningly, reduced time with their families.
Cities like Fremont, Newark, Union City, Milpitas and parts of San Jose, which already attract a high number of residents due to their lower costs and proximity to major business hubs, may see a further rise in demand. Employees who moved further away to take advantage of remote work and lower living costs might now find it necessary to return closer to their workplaces. The implications of this shift are significant. On one hand, it leads to the increased burdens mentioned earlier for employees. On the other hand, it is likely to result in quicker property sales in these areas, often with multiple offers, a sign of growing demand.
This increased property demand could herald a shift towards a more competitive market in these cities. Properties may sell more quickly, potentially at higher prices, creating a tough environment for homebuyers. Meanwhile, sellers and local economies might stand to benefit from this increased activity. As businesses reevaluate their remote work policies, the impact on employees' lifestyles and local housing markets is significant. While a busier market may be advantageous for some, the changes also present substantial challenges for others, underscoring the complexity of this transition.
