Real Estate

Tele-commuting impact on real estate?

  • Last Updated:
  • Nov 15th, 2018 10:30 pm
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Newbie
Apr 19, 2017
61 posts
27 upvotes

Tele-commuting impact on real estate?

With more and more employers offering work from home, what do you think will happen to RE?
People always mention "Toronto" because of "jobs, jobs, jobs"...

What happens when you can do that job anywhere (pretty much any office job you can)?

Telecommuting on the rise to meet challenges of real estate market, labour shortage

https://www.cbc.ca/news/business/teleco ... -1.4887564

Seems like businesses will want to do it too, as now a days everything is cost cutting to the bones..

"At a previous firm where Vigier was an investor, the company spent around $20,000 per month for office space, keeping with the industry's tradition of projecting an image of success through big boardrooms and beautiful views."
25 replies
Member
Jan 16, 2017
420 posts
255 upvotes
I can only speak to my area. I don't think it would work.

I am in strategy.
Deal Fanatic
User avatar
Jun 26, 2005
9505 posts
1549 upvotes
Toronto
The same impact when email came out and the entire world said

It will be a paperless society!!!

Then everyone started printing out their emails.
Deal Fanatic
Feb 1, 2006
9530 posts
678 upvotes
Muskoka
Longer term, it will have some impact. I have a lot of developer friends who work from home, and have made housing decisions based on that.

I live in Muskoka now, left the GTA last year. We moved here for other reasons, but I work part time from home, and most of my clients are in the GTA. They don't care that I am 2 hours away, as it has no impact on the work I do for them. So I can charge big city rates while living in a low cost area, it is pretty fantastic. I know others around here who do the same, and met many people while travelling who live as digital nomads.
Deal Addict
User avatar
Dec 13, 2016
2973 posts
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Millenial1994 wrote:
Nov 10th, 2018 10:03 pm
With more and more employers offering work from home, what do you think will happen to RE?
People always mention "Toronto" because of "jobs, jobs, jobs"...

What happens when you can do that job anywhere (pretty much any office job you can)?

Telecommuting on the rise to meet challenges of real estate market, labour shortage

https://www.cbc.ca/news/business/teleco ... -1.4887564

Seems like businesses will want to do it too, as now a days everything is cost cutting to the bones..

"At a previous firm where Vigier was an investor, the company spent around $20,000 per month for office space, keeping with the industry's tradition of projecting an image of success through big boardrooms and beautiful views."
Your post makes no sense, sorry.

If anything the real estate in the biggest cities will go up, simply because of infrastructure.

There are A LOT of so called "digital nomads" from USA and Europe in Asia. Do you think they get free or discounted rent? Do you think real estate is getting cheaper?

I have worked all my life since leaving University from home. I could have bought a house everywhere in Canada, but I chose Toronto, until I moved out to Bangkok. If someone works from home, do you really think they want to be in the middle of nowhere?
Newbie
Aug 5, 2018
70 posts
72 upvotes
With an "all-or-nothing" mindset, yes it is hard to get every facet of the city in the boonies. However, there is a lot of great cottage towns offering a middle ground. Telecommuting will open the market.
Jr. Member
Apr 15, 2009
130 posts
154 upvotes
toronto
Impact is obvious and multifaceted. Anyone working from home needs a home office and will therefore buy one extra bedroom compared to working from corporate office. Result: less corporate office space needed and more house offices ( bedrooms) needed. If 100 of corporate workers worked from home, downtown would be a ghost town and/ or converted to condo buildings.
Second, telecommuters have some flexibility in the location of their office. While some can work 3 hours out of the main center, most need to be closer to their clients but still have opportunity to go to the suburbs rather than be downtown. So again, pressure on downtown would be easing as more affordable living is available elsewhere.
Net, down the line you could see that downtown becomes less important for both business’ as they don’t need all that space rented as well as telecommuters who now have choice to live outside the range of daily commute and limit their commute to once or twice a month. With less traffic due to telecommuting, even workers who still have to commute should feel less stress around long commutes as reduce traffic jams may make their commute more acceptable hence allowing them to also live further away and still have similarly long commute.
So claims that telecommuting doesn’t have any effect on real estate don’t hold scrutiny. However process is slow and probably muted by ever increasing needs of of larger and larger population, more cars on the road etc.
Sr. Member
Dec 30, 2012
900 posts
972 upvotes
Toronto
BiegeToyota wrote:
Nov 11th, 2018 7:45 am
Your post makes no sense, sorry.

If anything the real estate in the biggest cities will go up, simply because of infrastructure.

There are A LOT of so called "digital nomads" from USA and Europe in Asia. Do you think they get free or discounted rent? Do you think real estate is getting cheaper?

I have worked all my life since leaving University from home. I could have bought a house everywhere in Canada, but I chose Toronto, until I moved out to Bangkok. If someone works from home, do you really think they want to be in the middle of nowhere?
Well that settles the issue I guess. Everyone in the world is exactly like you, apparently.
Sr. Member
Dec 30, 2012
900 posts
972 upvotes
Toronto
Staffah wrote:
Nov 11th, 2018 8:51 am
With an "all-or-nothing" mindset, yes it is hard to get every facet of the city in the boonies. However, there is a lot of great cottage towns offering a middle ground. Telecommuting will open the market.
Yes it's funny how unnuanced some people are.

Anything that isn't a massive metropolis is the "middle of nowhere".
Deal Fanatic
Feb 22, 2011
5890 posts
5589 upvotes
Toronto
I don't see it being a material issue, it has been possible for over a decade and isn't that common for many reasons. Not to mention unless both parents are able then it's pointless. Even further is that many like living in Toronto for reasons other than work.
Deal Addict
User avatar
Dec 13, 2016
2973 posts
2366 upvotes
civiclease wrote:
Nov 12th, 2018 6:51 am
Well that settles the issue I guess. Everyone in the world is exactly like you, apparently.
Yep. Most are. Big cities will never experience a crash.... you gotta accept a reality and get over it :)
Deal Addict
Jul 4, 2004
4818 posts
922 upvotes
Ottawa
The reality is that no matter how much telecommuting grows, it still only affects a small minority of the workforce and so it's impact on RE is negligible.
Sr. Member
Oct 8, 2003
618 posts
249 upvotes
Toronto
I think it works well for some jobs but there will always be a need for many jobs to be in a central location. My estimate is more higher paid jobs will be the office jobs and the work from home jobs will be lower level customer service. I don't think the impacts will be that much as they will continue building more office space and the wealthier people will need to be in the cities.
Realtor at Blue Elephant Realty focused on the Toronto Condo Market and Real Estate Investing

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