It’s been more than three years since offices emptied out for what many thought would only be a temporary period. Little did we know three years later many would still sit empty. While that has been true in general, the pace at which workers have returned and where they have returned to the office has differed greatly. A lot of trends emerged as a result of the pandemic: more remote work, the new concept of “hybrid” work schedules, and for a lot of city dwellers in particular, relocating to places with a lower cost of living. Housing costs around the country have certainly been a factor in discussions around returning to the office. Inflation has been on the rise in the U.S. since 2021, the year residential asking rents hit a record high. Added to the ongoing affordable housing crisis, the cost of living has risen almost everywhere, so it’s easy to see why office employees are seeking to work remotely in places where they aren’t crushed by steep housing costs.
CityMedian one-bedroom apartmentOffice vacancy rateNew York, NY$3,78022.4%San Francisco, CA$3,00024.8%Miami, FL$2,90015.8%Boston, MA$2,70013.1%San Jose, CA$2,63014.2%Los Angeles, CA$2,42025.5%San Diego, CA$2,40014.8%Washington, DC$2,37019.7%Fort Lauderdale, FL$2,10017.6%Seattle, WA$1,98021.1%Data: Zumper, Cushman & Wakefield
Now, at a time when the worst of the pandemic is in the rearview mirror and companies are calling workers back to the office more frequently, are steep rental prices leading to higher vacancy rates in major cities around the country? Based on median rental prices for one-bedroom apartments from Zumper and first quarter 2023 office
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