Key Details:
- Data from Placer.ai shows an increase in office building visits in July 2024 compared to the previous month, while foot traffic levels reached 72.2% of July 2019 levels—the highest level reached since the pandemic.
- A new article on Realtor.com explores the impact of back-to-office trends on five major U.S. metros.
Employees clocked in at the office more frequently in July 2024 compared to the previous month. And while we can’t rule out “coffee badging”* as a factor, July’s uptick still points to an ongoing acceleration in return-to-office (RTO) trends.
Nationwide, office foot traffic reached 72.2% in July 2024 compared to July 2019 levels, marking the highest level since the pandemic started.
And it’s having an impact on major housing markets.
A new article on Realtor.com uses the Placer.ai data to show the impact rising office visits are having on the housing market, specifically in five major U.S. cities:
- Miami — with office building visits up to 90.6% of July 2019 levels
- New York — 89.6%
- Dallas — 76.9%
- Atlanta — 76.7%
- Washington, D.C. — 73.9%
All 11 of the cities analyzed by Placer.ai saw a year-over-year increase in office visits, with Miami recording the highest annual visit growth at 22.8%, followed by San Francisco and Los Angeles.
Even cities like Houston, which was negatively impacted by flooding and power outages caused by Hurricane Beryl, saw an uptick in office foot traffic compared to July 2023.
Read on to see how the increase in office foot traffic is impacting homebuyer behavior in the most affected cities.
*Note: “Coffee badging” is a term used to describe when an employee pops into the office and scans their badge just to get a coffee and then leaves. Employers nationwide, from local governments to major corporations, are tightening their return-to-office (RTO) policies to address this and increase in-office productivity.
5 Metros Most Affected by Rising Office Visits
The accelerating return-to-office (RTO) trend is causing a shift in homebuyer preferences, particularly in the five metros highlighted by Realtor.com. Buyers are now more likely to seek areas that allow for a better balance between personal and professional life, with—
- More space
- Lower home prices
- Slower pace of life
- Plus—close enough proximity to work for commuting a few days per week
Read on to see how the shift in buyer behavior is impacting the five most affected metros.
1. Miami Real Estate Market
- Median List Price: $650,000
- Number of Homes for Sale: 12,839
- Median Days on Market: 66
Market Trend: Miami saw a surge in demand during the pandemic, attracting remote workers due to its sunny weather, lack of state income tax, and lifestyle benefits.
More recently, though, return-to-office (RTO) mandates have reduced housing demand as some buyers return to their original, more commute-friendly locations.
2. New York City Real Estate Market
- Median List Price: $799,000
- Number of Homes for Sale: 33,108
- Median Days on Market: 75
Market Trend: New York City saw a significant drop in demand during the pandemic but has since seen steady growth as return-to-office policies bring people back. Suburbs such as Basking Ridge, NJ (ZIP code 07920), just 37 miles from Manhattan, have become highly attractive for buyers looking for commuting proximity.
3. Dallas Real Estate Market
- Median List Price: $449,000
- Number of Homes for Sale: 5,184
- Median Days on Market: 47
Market Trend: While some out-of-state homebuyers who moved to Dallas during the pandemic have left, the low inventory keeps competition high. Multiple offers on homes are still common, and prices continue to climb, though less sharply than they did during the pandemic surge.
4. Atlanta Real Estate Market
- Median List Price: $400,000
- Number of Homes for Sale: 8,823
- Median Days on Market: 49
Market Trend: Atlanta attracted buyers during the pandemic but has since experienced a slowdown, especially in urban areas. Suburban markets remain strong as companies relocate offices closer to workers, offering more affordable housing and reducing employee commuting times.
5. Washington, DC Real Estate Market
- Median List Price: $592,450
- Number of Homes for Sale: 8,156
- Median Days on Market: 49
Market Trend: Areas surrounding Washington, DC—including Arlington, VA, Fairfax, VA, and Rockville, MD—are highly popular among buyers due to their proximity to business hubs. DC suburbs have seen homes selling for upwards of $100,000 over asking prices, reflecting strong demand, especially with workers returning to offices in the region.
Read the full articles on Placer.ai and Realtor.com for more information.
