*DataPoint* If Remote Work Becomes Commonplace, What Happens to Real Estate in Big Cities?

SalesForce, Microsoft, and Twitter have all extended their work from home policies either indefinitely or for the remainder of the year.

To say that housing is expensive in the Bay Area would be an understatement.

Frank ponders what will happen to the real estate market if you only go to the office once or twice a week? Or not at all?

Why spend money to be near a place you no longer go to daily?

Transcript (AI Generated)

Hey, what's up is Frank here from data driven,

the podcast or we explore the emerging fields.

Data science, machine learning and artificial intelligence.

So uhm, today this morning.

Actually, I read that Salesforce is allowing their workforce to

work from home for the remainder of the Year this.

Got me thinking. Uh, about other companies that have done

that.

Microsoft has at least last time I checked,

working from home or going into the office is voluntary

through at least October.

It might be extended. Who knows?

Twitter is said that they are going to make remote

work possible indefinitely.

I'm not sure Google stances,

but I think when you see the big tech industries,

the Big Giants in the tech industry is really what

I want to say.

Is they're all embracing work from home that is going

to have enormous.

I think implications across, well,

every industry, but I think one of the ones that

will be particularly impacted.

Given that number of Bay Area Giants have kind of

jumped on,

this will be real estate real estate in the San

Francisco area is notoriously expensive,

and it's the stuff of almost jokes in terms of,

you know, shack and cause a couple $1,000,000 and they'll

be a bidding war for said Shack.

I really wonder. Watt That will do for real estate,

because if you could you could stay in California.

Maybe move 3 four hours away from San Francisco or

the Bay.

And you can get a house that's more affordable.

And if you are going to be working remotely indefinitely,

or even when things kind of go back to normal,

whatever, that will look like.

You probably only be required to come in less than

five days a week.

Uh, you know, maybe a once a week,

4 hour commute. Each way maybe that won't be so

bad.

Uh, maybe maybe? I mean,

that's really going to. I think that's really going to

impact realestate ticular Lee in places like Silicon Valley and

San Francisco,

and possibly other places like New York,

but I'm really curious to see what the data will

say.

So if you have that bad of a commute once

a week,

I think most people would be willing to tolerate that

for more affordable housing an.

You know, I don't know.

I think that's really going to impact kind of not

the high end 'cause I think people are always going

to want to have some property there,

but I really think it's really going to change.

Kind of the lower to mid range of realestate all

over.

Let me not just San Francisco,

but I can easily see this applying to New York,

Seattle. Places where. Technology companies have really driven up the

real estate recently.

I don't know, you know,

and you also have the opportunity that you know if

you don't have to go into the office at all,

why not move to Nebraska?

You know where land is much cheaper than anywhere in

California?

I really think that when the dust shakes out of

this and now that remote work is much more accepted,

I think it's. I think we're going to see changes

or unanticipated changes.

I always like to say that one of the most

powerful forces in the universe is...