Remote Work is Driving a Second Wave of Relocation in 2021: Trends and Data

Pandemic-driven migration is far from over, with a significant majority of homebuyers and sellers considering or having already made a move facilitated by permanent remote work. According to a late-2020 survey, two-thirds of respondents are leveraging the freedom to work from anywhere to prioritize affordability and lifestyle, signaling a sustained shift in U.S. real estate patterns throughout 2021.

What Do the Survey Results Reveal About Relocation Trends?

The data, commissioned by real estate brokerage Redfin and fielded in November and December 2020, surveyed over 1,400 participants across 32 major U.S. housing markets. The key finding is clear: 66% of homebuyers and sellers have either already relocated or would consider moving to a different city or area if given the chance to work remotely permanently. This breaks down to 34% who have already moved and 33% who would like to. Of those who moved, a majority (30% of total respondents) relocated less than 50 miles, often from urban cores to nearby suburbs, while a smaller but significant segment (4%) moved more than 50 miles away.

How Does Income Level Influence the Ability to Relocate?

The trend reveals a distinct economic disparity, often described as a K-shaped economic recovery. This term refers to a situation where different parts of the economy recover at different rates. The data shows that higher-income earners are leading the relocation charge. A striking 44% of individuals earning over $150,000 annually had already moved to a different city or area, a significantly higher rate than other income brackets. This discrepancy is likely because wealthier Americans are more likely to have remote-work opportunities and the financial flexibility to afford moving costs and higher down payments.

Will Remote Work Continue to Fuel Migration Post-Pandemic?

The expectation that remote work is permanent is the primary engine behind this migration boom. The survey indicates that 72% of respondents currently working remotely believe their arrangement will continue after the pandemic subsides. With such a large portion of the workforce anticipating long-term remote flexibility, the record-level migration rates seen in late 2020 are expected to persist. This suggests that homebuyers are making long-term decisions based on lifestyle preferences rather than proximity to a physical office.

Is Migration Impacting Political Division in the U.S.?

Americans are divided on whether this internal migration will make the country more or less united, with 27% of respondents believing it will lead to less division and an equal share believing it will cause more. The data shows a political split: 33% of Biden voters see migration as a unifying force, while 31% of Trump voters view it as a divisive one. Interestingly, willingness to move to a politically diverse area is at a four-year low. In December 2016, 42% of respondents expressed hesitation, compared to just 27% in late 2020, suggesting that affordability and space are now bigger priorities for movers than political alignment.

Based on our experience assessment, the key takeaways for anyone navigating the current market are:

• The migration trend is solidifying. If you are considering a move, you are part of a major, ongoing shift. Remote work policies are a key factor in long-term housing decisions.
• Affordability is a primary driver. Buyers are seeking more space for their money, which often means looking beyond traditional city centers.
• Personal priorities are evolving. The decreased hesitation about political differences indicates a growing focus on practical housing needs over neighborhood demographics.