According to new data from the Placer.ai National Office Building Index, office attendance nationwide has reached 72.2% of July 2019 levels, marking the highest return rate since the COVID-19 pandemic. The top five cities with the highest office attendance rates are Miami (90.6%), New York (89.6%), Dallas (76.9%), Atlanta (76.7%), and Washington DC (73.9%).
This suggests that more employees are giving up fully remote work, although the hybrid model remains the new standard. This shift is impacting where people choose to live and buy homes. According to Hannah Jones, Senior Economic Research Analyst at Realtor.com®, many homebuyers are seeking areas that offer more space, affordable prices, and a relaxed lifestyle while still being close enough to commute to the office a few days a week.
Here’s an overview of the top 5 cities with the highest return-to-office rates and how their real estate markets are being affected:
Miami
- Median listing price: $650,000
- Number of homes for sale: 12,839
- Median days on market: 66 days
During the peak of the pandemic, homebuyers flocked to this vibrant coastal city. However, as the pandemic wanes and more people return to the office, the demand for office attendance is drawing some buyers back to their original locations. As a result, Miami's housing market has seen a recent drop in demand, presenting good opportunities for those considering buying.
New York
- Median listing price: $799,000
- Number of homes for sale: 33,108
- Median days on market: 75 days
New York saw a steeper decline in demand compared to cities like Miami, Dallas, and Atlanta during the pandemic. But return-to-office policies are driving people back, causing this market to heat up again. Many buyers are still grappling with the decision of living close to work or farther away, given that most don’t need to commute five days a week. As a result, areas like Basking Ridge, NJ (37 miles from Manhattan, zip code 07920) have emerged as some of the hottest markets nearby.
Dallas
- Median listing price: $449,000
- Number of homes for sale: 5,184
- Median days on market: 47 days
Dallas was a popular area during the pandemic, but as Americans return to the office, demand has slightly cooled. Some out-of-state buyers who moved here during the pandemic have returned to their previous locations. However, there is still a shortage of homes in Dallas.
Atlanta
- Median listing price: $400,000
- Number of homes for sale: 8,823
- Median days on market: 49 days
Another city that attracted buyers during the pandemic, Atlanta has also seen a slowdown since. Many people in the metro area have moved to less crowded suburbs, strengthening the suburban housing market. As a result, homes near office hubs in the city center are often very expensive, forcing workers to live farther away and endure long commutes. Fortunately, many companies have started relocating to the suburbs.
Washington DC
- Median listing price: $592,450
- Number of homes for sale: 8,156
- Median days on market: 49 days
Commuter-friendly areas near major Northeast business hubs like Washington DC are extremely popular among today’s buyers. If living in DC is not affordable, many consider nearby suburbs such as Arlington, VA; Fairfax, VA; or Rockville, MD. Recently, homes in the DC suburbs have seen bidding wars, with some selling for over $100,000 above the asking price.
As more people are forced to return to the office, many have had to move back to these areas, driving demand and pushing prices even higher.
In my area of Chicago, office returns are also increasing. As a result, home prices in areas with good school districts and access to commuter trains are expected to rise further. I also anticipate a slight uptick in the price of downtown condos. If you have any questions, feel free to reach out at any time.
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