The big city lifestyle has drained the pockets of downtown workers
One of the main reasons downtown cities used to be busy was “office workers.” However, the coronavirus pandemic has left downtown cores bare and it’s becoming a new normal. As well, the new “elevator etiquette” has created bottle neck problems for large corporate offices. Rather than rebuild the whole downtown infrastructure, businesses are opting for employees to stay home as pandemics may rise again in the future.
With the rise of remote work, employees are no longer tied to a desk in one location. They are able to work from what location they want as long as their work gets done. This paradigm shift allowed many working families and individuals to move away from the expensive core downtown areas and to more affordable housing in the suburbs or outskirts of town. There is truly a shift towards a more balanced lifestyle and more affordable living.
How does a bare downtown affect the real estate industry?
Well, many economists are predicting the death of department stores as retail businesses cannot afford the high rent of downtown real estate. They are now competing with e-commerce businesses that can offer products at lower costs. Multiple corporate offices are closing their locations for 2020 due to the pandemic or getting rid of them as there is no need to keep a space. Most also, cannot afford to keep an office space with large rent downtown, as many businesses have been negatively affected by the pandemic and cannot keep afloat.
What about all the underground businesses below the TTC or corporate food courts that are only open during business hours? Who’s going to go to those locations now that no one is in the city? Luckily, there are some types of businesses that do need to stick around like advertising or film studios and financial services who need high-speed data capabilities that require them to be in the office.
Where you live will determine your salary, with remote work as the new normal
One thing to keep in mind is that employers are going to adjust wages based on what city you live in, stated Mark Zuckerberg from Facebook. So yes, moving to a smaller suburb will be more affordable, however, you may see a large decrease in your salary as your living costs have just dropped dramatically. You no longer need to go out for lunch downtown, pay for transit to and from work, or pay for your car. As well, you don’t need to pay for a pricey living location downtown.
Where are city dwellers moving to now that remote work is here to stay?
The Niagara region! There has been a steady increase in families buying in this area. The sought-after quiet family life lives and breathes here. No longer are families tied to living in big cities where jobs are.
Comment below and let us know your thoughts. Are you still living in the city? Thinking of moving away from the city? Or are you staying put?