The COVID-19 pandemic has changed the way that people interact, ensuring that safety is the top priority while people are trying to go on with day to day life. Social distancing, the closure of businesses and schools, and the requirements to wear personal protective equipment (PPE) for regular people seems to be the new norm. But once the shelter in place orders and social distancing requirements are lifted, can we ever truly go back to the way it was before? That question seems to be on the tip of everyone’s tongue, and while the jury may still be out on the conclusion, we already know that things will never quite be the same.

We thought we’d take a look at what changes to our society and economy are likely to stay in place post-pandemic as well as what that means for the real estate market. Things might not go back to the way that they were, but that doesn’t mean we don’t have a bright future ahead of us!

Social Changes That Are Likely to Stay in Place

Modifications that will continue to keep people safe post-pandemic

Altering the Workplace

The majority of American workers--except those that were deemed essential--were ordered to work from home at the start of the crisis. Many had never had the opportunity to do this before, and businesses scrambled to get their employees set up and functioning as quickly as possible from dining rooms, kitchens, and couches that had become new workplaces. Eventually, we learned how to adjust our schedules to no longer include commutes, getting kids to school, meetings, and travel. However, once employers are once again allowed to open their doors, what is mostly likely to still stay in place?

One thing we know is that there’s going to be a lot less in person meetings, and possibly a lot less employees in one spot at any given time. Many employers will choose to keep a portion of employees onsite, working from home, and possibly at newly created regional hubs or workspaces. This allows them to keep some of the traditional office environment, but with much less people gathered together at any given time. Meetings will also look a little different, with many continuing to function via video chat when some employees are in the office, and others are not.

With working from the new norm during the pandemic, many employees have grown accustomed to the flexibility it offers them-- including possibly a better work/life balance than they had before. Employers who may have been less flexible with schedules before the work from home requirement have now seen first-hand how productive and responsible their employees can be away from the office setting. This might lead to greater numbers of people participating in a more flexible work schedule than ever before. As businesses move away from having all employees report to the same location at the same time, it could be the end of the mandatory 9am-5pm work day as we know it.

Certain businesses may not recover

Many businesses such as restaurants and those in retail have had to close their doors to the public due to the coronavirus. Post-pandemic, we could see this part of the economy looking a little different than what it did before. One of the hardest hit industries has been the service industry, and many small, local, and family-run restaurants have struggled due to the pandemic closures. The pandemic forced many to become more tech savvy to reach their customers and let them know they would be open for curbside pickup or delivery. Some restaurants joined third party services such as DoorDash and GrubHub to help them stay afloat as well, at the expense of sharing a portion of their profits. This has enabled many places to stay above water, but many will not be opening their doors again in a post-pandemic world. Restaurants can apply for the CARES Act Paycheck Protection Program for loan coverage, but many mom and pop restaurants either can’t get through the red tape that surrounds application, or just don’t have a loud enough voice to be considered. What we’re left with might be a lot less selection when it comes to eating out.

The retail industry was also hit hard, especially smaller local shops. With their brick and mortar stores shuttered, stores that didn’t have a large online presence quickly scrambled to get one. The large chains such as Amazon, Target, and Walmart were able to keep going due to their ability to handle large volumes of online orders for delivery and pickup. But smaller stores have been having difficulty without the ability to have walk-in clientele. Post-pandemic, online retail and social media knowledge will be a necessity for stores to stay open and make a profit.

Even going to the doctor’s office is going to be changed. More and more appointments will be shifted to online, making telehealth the new normal. Healthcare may even seep more into our everyday lives post-pandemic, with businesses or places where large numbers of people gather (such as malls, airports, train stations, etc.) requiring some form of temperature testing and mask requirements.

Family and social life will look different

Post-pandemic, many people agree that social distancing and limiting our interactions in public will still be in place--at least for a while. People will eschew handshakes and hugs and instead use waves and air kisses to greet friends and family. People may be hesitant to gather where there are large numbers of people--after all, how will things be disinfected? When COVID-19 hit schools were closed and children came home from universities, forcing academia to shift entirely online. Perhaps this might be the future of higher education, which would cost less and no longer require students to take on significant amounts of debt. With family life looking a lot different as we move post-pandemic, that begs the question--what types of changes will come to real estate and the housing market?

What Will the Post-Pandemic Real Estate Market Look Like?

There are already shifts in the real estate market

Multi-family living will be the new norm

The real estate market was hit incredibly hard by the pandemic, with sales plummeting in March 2020 as in-person showings and closings were no longer the norm. But the market is showing signs of a comeback, with Zillow reporting an increase of web traffic for available listings as well as a demand to contact real estate agents. The real estate market has switched to a virtual environment, with home showings and even appraisals and closings being done completely online. But what types of homes are buyers looking for now, and post-pandemic? Experts believe people should be looking for homes that can offer them not only an affordable price, but provide them with the flexibility to make room for the new at-home normal:  multi-family living.

Due to the closure of schools, many college age children have returned home to finish out their semesters online. If you’re lucky, you have a quiet, separate space for them to do their learning, but unfortunately, many people simply do not. Prior to the pandemic, downsizing and moving into smaller--and even tiny--homes really resonated with a lot of people. While smaller living does have its pluses (costs less, more environmentally friendly) it just doesn’t offer the space to have more than two people living there comfortably. Going forward, no one knows how universities will again open their doors--perhaps there will be more options to learn completely from home? That means no more dorm living or access to the campus library for studying. That’s going to mean a bedroom for adult children is a must.

If you didn’t already have a parent or in-law living in your house, chances are you do now. Elderly family members have increasingly been moving back in with their adult children--typically to assist with the care of younger children or to be under the care of a loved one themselves. Although a lot of people may have had one extra room they may have previously used for storage, now they’ll have to be used as a bedroom for grandparents. Houses with extra bedrooms or built-in guest bedrooms/in-law suites are going to be very high demand, as no one wants to give up their privacy long term--even if it’s to share a space with a family member.

Flex rooms are key

Because more people are going to be living under one roof post-pandemic, you’re going to need space for more than just bedrooms. Flexible spaces are also going to be very much an important selling point. These types of spaces can be used for a variety of different things, depending on your needs. If you were commuting to work everyday to an office, there’s a good chance that may change. Many jobs done in an office can be done remotely--as long as you have access to the appropriate technology-- as the mandatory closure of businesses has shown us. That means you’re going to need a space for a real home office--instead of just using the dining room table or the breakfast nook. A dedicated workspace is essential to ensure productivity and to keep work and home separate. This is doubly important if both partners will be changing from commuting to a more work at home schedule.

Flexible spaces are intended to be multi-functional, so while they may be primarily home offices, they could also be where you sneak in an extra bed, or where the family gathers after the work day to watch a movie or catch up on their favorite shows. Elementary and secondary school children also need a space where they can attend their classes online and complete assignments. While this needs to be separate from a home office, there’s no reason why this activity room couldn’t also double as a storage room, a studio, or even snuck into a larger washer/dryer area.

More space is better

What it comes down to is that post-pandemic, people are going to demand more space for a host of different reasons. This demand for more space isn’t limited to just a number of rooms or flex rooms that a house might have, but also includes the need for larger kitchens, dining areas, living rooms, and bathrooms. When you have more people living in a single space, they’re going to want a little more breathing room then what families may have been used to in the past. Kitchens that can accommodate more storage and include rooms like a walk-in pantry, islands, and lots of counter space are all items that interested buyers are going to be looking for. If there are more people at home, there’s going to be more people at the dinner table too, increasing the need for space that can handle larger furniture and offer alternative places to eat--such as a breakfast bar or a nook--where people can grab a meal.

Going forward, we’re still going to be spending a lot of time at home, and that means homes will need to include enough space for a family to incorporate a home gym or activity area. Exercising is still extremely important, but no one is going to be rushing to go back to the gym where you’re in close contact with other people and sharing equipment that is not always properly sanitized. Gyms are easily incorporated into a finished basement and do well in flex rooms too. There’s no need for a huge amount of equipment, with maybe one bulky treadmill or elliptical, but weights, yoga mats, and resistance bands certainly don’t take up that much space.

While we’re social distancing and living under shelter in place orders, patios and decks are definitely getting a lot more use than ever. Post-pandemic, this kind of outdoor space is going to be coveted by buyers who in addition to indoor areas, will want somewhere safe and private where they can relax, eat outside, and enjoy the company of each other.

There might not be a way to return to life before the coronavirus, but that doesn’t mean that we can’t be optimistic about the future. It may look a little different but it will eventually help us return to the safety and stability that we know, which is something to look forward to!