How remote work correlated single family real estate property price boom might be short lived
John Mondragon at the Federal Reserve Bank of San Francisco and Johannes Wieland at the University of California, San Diego, estimate that remote work fueled a 15 percent rise in house prices over the two-year period that ended in November 2021. That’s almost half of the total price increase for that period. Source: https://squaredawayblog.bc.edu/squared-away/remote-work-has-pushed-up-house-prices/ So, when we hear people being irrationally exuberant about single family real estate as next great investing option (or say contemplating moving to even bigger home from juicy investment perspective), remind yourself that recent increase is highly correlated to remote work and has very little to do with long term housing fundamentals. If corporate America starts requiring more team collaboration (and hence less remote work) as going forward trend, outer suburb single family home valuations are likely to go through correction cycle during next recession. Savvy investing is all about thin