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Working from home played part in home price jump, new study says

‘Great reshuffling’ created more housing demand as more people work from home

FILE - A for sale sign is displayed outside a home in Mount Lebanon, Pa., on Tuesday, Sept. 21, 2021. Sales of previously occupied U.S. homes slowed in March 2022, to the slowest pace in nearly two years as a swift rise in mortgage rates and record-high prices discouraged would-be homebuyers. The National Association of Realtors said Wednesday, April 20, 2022, that existing home sales fell 2.7% last month from February to a seasonally adjusted annual rate of 5.77 million. (AP Photo/Gene J. Puskar, File) (Gene J. Puskar, Copyright 2021 The Associated Press. All rights reserved)

The “great reshuffling” has been a huge reason why home prices have been skyrocketing.

New research shows that home prices jumped 23.8% during the pandemic and that 15% of that growth was due to remote work.

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Many people turned to warmer climates around the Sun Belt, a move that was a significant driver in prices.

By the end of the fourth quarter of 2021, the median single-family home in Austin, Texas, grew by 26%. Phoenix was also up by 26% and Boise, Idaho, climbed 24%.

This “great reshuffling” has created a nationwide demand for housing as more and more people work from home and get the choice about where they want to live.


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