Suburbia is About to Thrive Thanks to ‘Zoomshock’

With nearly 30 percent of the Irish workforce working from home during the pandemic, the economic ramifications of this relocation of work are now beginning to emerge. In a piece for the Irish Times, Cliff Taylor explores how the residential and commercial sectors will change if working from home remains at least partially the norm. The article contains commentary from some of the country’s busiest estate agents and is well worth a read: https://www.irishtimes.com/business/economy/the-rise-of-suburbia-how-we-live-is-about-to-change-1.4645585.

Known as ‘zoomshock’ (another word to add to our growing pandemic lexicon), the impact working from home is having on society is far-reaching, with most agreeing that the suburbs of Ireland are most likely to benefit, despite the recent focus on a rural renaissance. Suburbs in Ireland and elsewhere are now seeing a lot more activity, both socially and commercially.

Regional and Suburban Housing Demand

This change to working where we also live is changing buying habits too, especially in the residential market, with many now weighing up their housing options. Working remotely enables workers to live farther from city limits, finding larger homes within their budget.

According to the managing director of Sherry FitzGerald, Marian Finnegan, working from home is likely to become the new normal, at least part of the time. Observing the day-to-day property market, she believes that residential buying habits indicate workers are expecting to work remotely in the future. Whether working from home is full-time or for a few days per week, estate agents are now seeing demand for properties further away from cities, with the ‘15-minute commute’ no longer as persuasive as it once was. Finnegan notes there is significant market activity relating to the sale of rural homes too, with remote homes, especially coastal properties, particularly in demand.

Despite this, suburban and larger regional towns still stand to benefit the most from zoomshock. As the pandemic raged, working from home meant the income of many was not significantly disrupted. Savings also grew with no commuting costs, holidays, or restaurants to spend cash on.

What had been a commuting population prior to the pandemic is now a quality of life population, with intending homebuyers seeking a move to suburban environments that are conducive to the new working landscape. With many people formerly shopping, socialising, and hitting the gym on lunch breaks and after work in the city, suburban environments that afford these same opportunities will be popular markets. Additionally, many workers are actively looking for larger homes with more rooms, attempting to meet the demands of work in a residential setting.

According to the Finnegan estate agents, this change in buyer attitudes is reflected across the market. The upmarket Dublin suburbs, for example, are seeing a lot more interest, especially in properties worth in excess of €800,000.

Regional towns that have experienced a high level of interest from relocating homebuyers will likely see this trend continue into 2022. Being close to cities with good transport links keeps the office close enough for necessary visits but affords the benefits of suburban living. Studying 177 regional towns, chief economist at IBEC, Gerard Brady, expects these suburban areas close to major cities to become the most desirable residential areas.

Commuting Changes

Of course, a continued increase in suburban market activity will depend on whether working from home remains after the pandemic eases. Over the past twelve months, several surveys have been conducted to gauge worker attitudes towards working from home. The results of these surveys have found that people enjoy remote working, but the majority prefer a mixture of home and office.

According to a survey by Morning Consult for Prudential in the U.S., 87 percent of workers want to at least partially work from home. This hybrid model of working, where workers could have as little as one day a week in the office, may explain the uptick in suburban and country property demand.

Cliff Taylor, the article’s author, believes the days of the five-day commute are now over. He argues that if office numbers continue to shrink, government policy should reflect a changing society, redirecting investment in suburban residential development as well as more services and shops to benefit at-home workers. And if working from home continues, Taylor believes government focus would need to change. The need for huge investment in public transport is lessened if people only need to venture into the city once or twice a week. The plans to cut carbon emissions would also likely need to be re-assessed, perhaps investing more in energy-efficient home measures and construction. While it is still too early to predict likely trends post-Covid, it certainly appears that Ireland’s property market is set for a balance, which has been sorely lacking in recent decades