The Covid-19 pandemic has brought about significant changes in the way people work, with remote work becoming the new norm for many. A new study conducted by the ifo Institute and immowelt has found that this shift towards working from home has motivated many people to relocate, with former city dwellers being the most likely to move to the suburbs or smaller cities.
The survey, which was conducted in the fall of 2022 and involved 12,000 people in Germany, found that 38 percent of those who left big cities moved to the suburbs, while 30 percent moved to smaller cities with populations between 100,000 and 500,000. Only 9 percent moved to small towns, and 5 percent to rural areas. These results indicate that contrary to some expectations, the Covid-19 pandemic has not provoked an exodus to the countryside.
Financial considerations have also played an increasingly significant role in people's decision to relocate. Respondents cited increased basic rents and higher energy prices as major cost drivers. In May 2021, only 12 percent of respondents perceived housing costs to be a major financial burden, but this percentage rose to 20 percent among those surveyed in the fall of 2022. Of those planning to move in the next 12 months, 12 percent cited financial burden as the most important reason for moving.
The study's results are not limited to Germany, as remote work has become a global trend. The Covid-19 pandemic has forced many companies to adopt remote work, and the trend is likely to continue. In the United States, for example, remote work has become increasingly popular, with many companies offering their employees the option to work from home. This trend has also led to many people relocating to suburbs or smaller cities with lower costs of living and more affordable housing.
In Australia, remote work has also become a popular trend, with many companies offering flexible working arrangements. This shift has led to many people relocating to the suburbs or smaller cities, where housing is more affordable, and the cost of living is lower. In Canada, remote work has become increasingly popular, and many people have moved to suburbs or smaller cities, where they can enjoy a better quality of life and a lower cost of living.
In conclusion, the ifo Institute and immowelt survey has shown that remote work has motivated many people to relocate, with former city dwellers being the most likely to move to the suburbs or smaller cities. Financial considerations have also played a significant role in people's decision to relocate. This trend is not limited to Germany but is also being observed in other countries worldwide. As remote work continues to grow in popularity, it is likely that this trend towards suburban and smaller city living will continue.