COVID Musings 11
If we take as a given that more individuals will either seek, or be forced into work from home scenarios either part time or full time in the future, we must ask the question, how will this affect residential real estate.
My friends who focus on the social and psychological side of Word From Home all point to an ability to shut out home distractions and create a mental "transition" from home life to work life to be critical to success. A work sanctuary space.
This has substantial impact on the desired configurations of multifamily. Where a 1 bedroom was sufficient in the past, a 2 bedroom will now be required. 2 bedrooms will evolve to a 3 bedroom .
The need for 3 bedrooms will probably have the most impact. For one, many families with two bedrooms use them as one for the parents and the other for the kids. And the presence of kids in the residence is a MAJOR challenge to productivity and efficiency in a WFH scenario. So those families with kids in a 2BR will drive this change.
But where are the 3 BR's going to come from? Most developments have very few if any 3 BR apartments for rent. This will be the driving challenge in the future, for new development, and for existing development, how to take a 1 BR and 2 BR and combine them cost effectively.