Of course, the areas that lost industrial jobs over the last few decades are not necessarily the places that are gaining remote workers today. The important thing, however, is that smaller towns typically have fewer restrictions on land use. This means greater demand for housing will not necessarily translate into higher rents, but increased housing supply.
The flexibility of remote work means that areas which do allow their housing stock to expand should attract more remote workers. As long as that’s the case, the possibility exists for lower-skilled non-remote workers to be able to move to where demand is greatest.
It’s hard to say whether this move toward remote work has staying power. But the early signs are encouraging. If the trend persists, the U.S. could see a reversal of one the most punishing developments of the last few decades—and a rise in the productivity and standard of living for lower-skilled Americans.
This article was provided by Bloomberg News.