How 2024’s Remote Work Trends Are Impacting Rental Demand

Proximity to workplaces has long driven rental demand, with hot job markets linked to lower vacancy and higher rents. This never changed — but the way we work did. When remote work became a necessity during the pandemic, people found themselves untethered from crowded cities. They headed further afield, chasing more space, family-friendly amenities and lower cost lifestyles. 

But a lot has shifted in a short few years, so let’s look at the impact that remote work is having on rental demand in 2024. Has remote work peaked as employers call staff back to the office? Are renters returning to cities or still rocking the suburbs?

Here are three of 2024’s remote work trends and their impact on rental demand across the US. 

1. Hybrid work is trending over remote-only

There’s been so much talk about employers pushing staff to return to offices in 2024 that it has its own acronym now — RTO. The Return To Office trend is seeing a decline in remote work from the pandemic highs of 2020-2021. Fewer than 26% of US households still have someone working remotely at least one day a week, down from 37% in early 2021. 

What’s emerging now is a hybrid work model. Many workers still enjoy the flexibility of working from home, but have a routine or required office hours for in-person collaboration.

What this means for the rental market in 2024:

Remote work may have dipped, but it’s here to stay. With flexibility a mainstay, more renters will place a premium on the comfort of their rental homes. Homes that are comfortable enough to both live in and work in will be in demand. As commuting returns, even part-time, proximity to offices and transport will also be as important as they were pre-pandemic. 

As a homeowner, you can help your home to attract long-term, hybrid-working residents by:

• Providing flexible spaces for living and working
• Optimizing natural light in the home with the right blinds, light fixtures, and paintwork
• Paying attention to comfort factors like heating and cooling in the home
• Making sustainability upgrades to lower the running costs of the home
• Allowing pets, as many hybrid workers have canine “coworkers”
• Promoting transport options and local amenities in your rental listing

2. Mid-size cities are having a moment

In a recent article on how remote work has shaped the economy, U.S. News notes a ‘chicken and egg’ scenario. People are relocating to remote-work friendly places where housing costs are more affordable. But these are also places where jobs are growing the fastest in 2024. Cities mentioned include:

• Charlotte and Raleigh, North Carolina
• Orlando and Jacksonville, Florida
• Houston and San Antonio, Texas

It used to be that people always moved where the work was, but it seems work is also moving to where the people are. Look at areas like North Carolina in particular, which is seeing major growth in the finance, education, and technology sectors (Apple even moved in). 

What this means for the rental market in 2024:

Population growth in mid-size cities is great news for individual rental owners, who can’t always compete with corporate landlords or the entry cost of major metropolitan areas like Los Angeles, San Francisco or Seattle. Mid-size cities in states (sometimes called “18-hour cities”) offer a similar quality of public services and job opportunities, attracting strong rental demand. 

If you own a rental home in a state like Texas, Florida, North Carolina or South Carolina, it would be wise to get your place move-in ready for long-term renters looking for a place to settle comfortably to live and work. Belong can help. Focused on individual homeowners and reliable, long-term residents, we can help you attract the best people (and price) for your rental home. Learn more about becoming a Belong homeowner and securing guaranteed rent. 

3. The ‘California exodus’ is overstated

There have been mixed reports on the ‘California exodus’. Some studies report that people are leaving the state in droves. Many pointed to the dramatic drop in rents in the Bay Area that hit in 2020. But none of these tell the whole story. 

For starters, San Francisco rents are still some of the highest in the nation. The Bay Area in particular is seeing rental growth, according to Zumper’s April rent report. There was even a report from CBS News that suggested that while many people have left California, there’s also plenty coming in from Texas, rather than just flowing out. 

Remote work also encourages people to ditch their roommates — creating a higher number of households. This is what saw rents rebound previously, with more households being created even when the population changes.  

What this means for the rental market in 2024:

It means owners of rental homes in California, particularly San Francisco’s Bay Area, don’t need to panic. Reported drops in asking rents of November-December 2023 are consistent with seasonal dips that were always experienced pre-pandemic. 

Homeowners looking to lock in the best rental price to achieve their financial goals should look to:

• List their rental in spring and summer months, when rental prices peak
• Follow the livability tips mentioned above to attract remote/hybrid workers in smaller households
• Secure guaranteed rent to ensure consistent cash-flow
  
  

Get your home remote-work ready with Belong

If you’re looking for a long-term solution and stability in your rental experience, Belong has you covered. We’re making rental finances predictable by offering stable, guaranteed rent. We’re providing flexible payment options to keep your cash flow steady. And we’re doing it while providing a better way of living for the millions of Americans who rent. 

See why thousands of US homeowners are ditching outdated Property Management in San Francisco,San Diego, Seattle, Charlotte, Jacksonville, Orlando and many more.