Working from home is a new normal for residents in the Bay Area and is also making it harder to predict the future of real estate.
“We know there’s not enough housing supply in the Bay Area, and as a result, many folks can’t afford to live in areas that are close to their office,” said Jordan Levine, deputy chief economist for the California Association of Realtors (CAR). Levine said that Bay Area workers will be “going to where the housing supply is.”
The definition of “close to their office” has changed during COVID-19 and will, most likely, continue changing after, COVID-19.
Asked what makes it difficult to predict residential real estate market behavior, Levine said, “In the Bay Area it’s really tough because the work-from-home component really influences the distribution of where folks are going to be living and how many folks really come back to work in the physical sense.”
Levine knows the Bay Area. Prior to joining CAR, he worked with Beacon Economics for more than eight years researching and analyzing Bay Area real estate and economic trends.