Working from Home: How Real Estate is Adapting
- magnate79
- Nov 19
- 8 min read
The Australian property landscape has undergone a seismic transformation since March 2020, when COVID-19 forced an unprecedented shift in how we work. What began as an emergency measure has evolved into a permanent restructuring of our relationship with residential space. From 2020 to 2025, working from home statistics tell a compelling story of adaptation, and as we look toward 2026, the real estate sector faces critical decisions about how to serve this enduring demand.
The Working from Home Revolution: 2020 to 2025 in Numbers
In March 2020, when Australia entered its first lockdown, all workers capable of working from home were mandated to do so. By November 2020, 67% of employed Australians were sometimes or always working from home, a dramatic increase from 42% pre-COVID. This wasn't merely a temporary blip—it represented the largest workplace transformation in Australian history.
The trajectory from 2020 to 2025 reveals fascinating patterns. By August 2021, 40.6% of employed Australians regularly worked from home, marking the peak of the remote work revolution. By April 2022, 46% of people had worked from home at least once per week, the highest level recorded since the pandemic began. Whilst these figures have moderated slightly, in August 2023, 37% of Australians worked from home regularly, still five percentage points above pre-pandemic levels.
The sector-specific adoption reveals stark disparities. Close to two-thirds of managers and professionals (60-64%) were regularly working from home, compared with around one-quarter across other occupations. This occupational divide has fundamentally reshaped property demand, with professional couples seeking homes that accommodate dual workspaces becoming a dominant market force.
Perhaps most tellingly, 88% of Australian workers surveyed in July 2022 indicated they would like to work from home at least partially, and 60% preferred a hybrid arrangement. This isn't workers capitulating to employer demands—it's workers insisting on flexibility as a non-negotiable employment condition.
How Working from Home Reshaped Real Estate Markets
The Great Regional Migration
The most visible impact of working from home between 2020 and 2025 was the exodus toward regional centres. Before the pandemic, approximately one percentage point every two years saw increases in remote work. Post-pandemic, regional migration patterns accelerated dramatically. Properties in Geelong, Bendigo, Ballarat, and the Sunshine Coast experienced unprecedented demand as professionals realised they could maintain metropolitan salaries whilst enjoying regional lifestyles and lower housing costs.
Regional property price growth outpaced the national average, rising by 26.1% in the 12 months following the pandemic's onset. This wasn't speculation—it was families and professionals voting with their feet and their mortgages. The comparative advantage became impossible to ignore: whilst Sydney's median house price approached stratospheric levels, regional markets offered detached homes with genuine workspace potential at entry points that actually accommodated young families and first-home buyers.
The Domestic Infrastructure Boom
Between 2020 and 2025, Australian households invested billions in transforming residential spaces into functional workplaces. The Australian home office furniture market reached USD 867.3 million in 2024 and is projected to reach USD 1,345.60 million by 2033, with a growth rate of 4.90%. These weren't cosmetic upgrades—they represented fundamental infrastructure investments.
Ergonomic design transitioned from luxury to necessity. Height-adjustable desks, proper task lighting, acoustic treatments, and dedicated internet connections became standard requirements. One study found that 37% of Australians working from home daily drove investments in interior upgrades, with a 13% increase of up to USD 17,000 in 2022 compared to 2021. Estate agents quickly learned that properties featuring dedicated studies, second living areas convertible to offices, and superior NBN connectivity commanded premiums of 5-10% over comparable homes lacking these features.
By September 2024, 36.05% of Australian households had solar panels installed, with 3.912 million systems across homes and small businesses. For remote workers running home offices daily, these installations offered both environmental credentials and genuine cost savings on electricity bills—particularly relevant when heating, cooling, and powering workspaces throughout business hours.
Property Design Features That Defined Working from Home Real Estate
The specifications buyers prioritised from 2020 to 2025 shifted fundamentally. The traditional "fourth bedroom" evolved into the "home office suite" in marketing materials, and this wasn't semantics—it reflected genuine buyer demand backed by willingness to pay.
Properties succeeding in this market featured soundproofing between living and working zones, abundant natural light in study areas, and separated entrance points for deliveries. Developers began incorporating these features from planning stages rather than as afterthoughts. Integrated work-from-home functionality and wellness-focused living developments became standard rather than premium offerings.
Paul Virdi, Director of Alpha Real Property Group, observes: "Between 2020 and 2025, the question fundamentally changed from 'where do you want to live?' to 'where can you live and work sustainably?' Properties answering both questions simultaneously outperformed the market by considerable margins—we documented premiums of 8-12% for homes with dedicated, well-designed office spaces compared to equivalent properties without them. This wasn't a trend; it was a permanent market recalibration."
The Commercial-Residential Working from Home Convergence
The boundaries between commercial and residential real estate blurred substantially from 2020 to 2025. The Australian flexible office space market registered a CAGR exceeding 8% during 2024-2029, with much of this growth occurring in suburban locations rather than traditional CBDs. These spaces served remote workers seeking professional environments without lengthy city commutes.
As of August 2024, 14.3% of Australian job listings explicitly incorporated phrases like 'work from home' or 'work remotely', nearing an all-time high, with Australia's share of remote postings rising by 12.2% from 2023. This sustained demand reshaped suburban high streets, where former retail spaces increasingly housed co-working facilities serving local populations. The work-from-home revolution didn't eliminate demand for professional workspaces—it redistributed them geographically.
Investment Performance and Market Dynamics: The Reality
For investors navigating 2020 to 2025, working from home created both opportunities and complications. House prices rose by an unprecedented 22.2% year-on-year at the peak, the highest increase since 1989. However, this growth wasn't evenly distributed.
Properties in regional centres with strong internet infrastructure and lifestyle amenities dramatically outperformed metropolitan units lacking workspace functionality. Capital city house values rose almost three times as much as unit values from COVID's onset through 2023, as buyers prioritised space over location. However, the gap narrowed across most cities by 2025, with unit prices recording stronger growth as affordability constraints drove market rebalancing.
Units lacking dedicated workspace or suffering from poor internet connectivity significantly underperformed their better-equipped counterparts. Savvy investors recognised that properties accommodating remote work commanded not only purchase premiums but also rental premiums—tenants actively sought homes supporting work-from-home arrangements and paid accordingly.
Looking Forward: Working from Home Real Estate in 2026 and Beyond
As we transition into 2026, the evidence overwhelmingly suggests that working from home isn't a temporary phenomenon but a permanent restructuring of Australian work culture. The question facing investors, developers, and homebuyers isn't whether remote work will persist, but rather how property markets will continue evolving to meet this demand.
Market Predictions for 2026: The Working from Home Factor
Property market forecasts for 2026 anticipate continued growth, with houses projected to rise approximately 6-7% and units 5-5.5%. Sydney houses are projected to reach approximately $1.83 million by June 2026, whilst Melbourne approaches $1.11 million. However, these headline figures mask significant variations driven by working from home accommodation.
KPMG anticipates more balanced growth in 2026, with house prices rising 4.5% and units by 5.1%, as supply improves and population growth normalises. Interest rate cuts implemented in early 2025 are improving borrowing capacity, potentially accelerating demand throughout 2026. The federal government's 5% deposit scheme launching January 2026 will further energise first-home buyer demand—and these buyers are explicitly seeking work-from-home functionality.
Australia faces an extreme housing supply shortfall that will exert upward pressure on prices and rents throughout 2026. KPMG forecasts 160,000 new dwellings annually over the next two years—30% below the national target of 224,000 homes needed. This supply constraint means properties offering genuine work-from-home functionality will command even greater premiums as competition intensifies.
Regional Markets and Working from Home in 2026
Regional hubs with transport links and lifestyle amenities remain attractive for 2026 investment, particularly as remote work continues influencing residential choices. The regional renaissance sparked between 2020 and 2023 shows no signs of reversal. Properties in areas like Greater Geelong, the Sunshine Coast, and Wollongong are positioned to maintain value premiums as CBD workers cement permanent work-from-home arrangements.
Adelaide projects 4% growth in 2026, whilst Perth forecasts 5%, representing stable performers for investors seeking working from home-friendly markets outside the traditional Sydney-Melbourne duopoly. These cities offer compelling combinations of affordability, lifestyle amenity, and infrastructure supporting remote work.
Technology Integration: The 2026 Working from Home Home
With 42% of Australians planning $1,500-$5,000 smart home upgrades, technology integration is becoming standard rather than luxury. Properties featuring smart home capabilities, superior internet infrastructure, and integrated home office technology will increasingly dominate buyer preferences in 2026.
Developers are responding strategically. New residential projects for 2026 delivery feature communal co-working spaces, enhanced internet infrastructure as standard, and floor plans explicitly acknowledging that homes must function as workplaces. The "live-work-play" concept isn't marketing hyperbole—it's a genuine planning principle driving development decisions.
Unit Markets and Working from Home Functionality in 2026
Unit prices in four of the six capital cities are on track to hit record highs by June 2026. However, not all units are created equal. Those featuring dedicated study nooks, superior soundproofing, and reliable internet connectivity will dramatically outperform standard apartments lacking these features.
Units may outpace houses in certain markets due to affordability pressures, but only those genuinely accommodating work-from-home requirements. The 2026 apartment market will increasingly bifurcate between work-from-home-friendly units commanding premiums and traditional apartments struggling to attract buyers and tenants who require functional home workspaces.
First-Home Buyers and Working from Home in 2026
First-home buyers may face more challenges, with households potentially needing annual incomes exceeding $180,000 in cities like Brisbane to afford a median home by 2026. However, buyers prioritising work-from-home functionality may find opportunities in well-located units and regional properties offering genuine workspace at more accessible price points.
If rate cuts occur in 2025, their full impact will likely be felt in 2026, further fuelling price growth. First-home buyers entering in 2026 should prioritise properties with demonstrable work-from-home functionality—these features will protect value during any future market corrections whilst maximising rental returns if circumstances change.
Investment Strategy for 2026: The Working from Home Imperative
For investors approaching 2026, the implications are unambiguous: properties accommodating remote work will continue commanding premiums, whilst those lacking these capabilities face headwinds. The Australian real estate market isn't merely adapting to working from home—it's being fundamentally reshaped by it.
Strategic opportunities for 2026 include properties in regional centres with strong infrastructure, well-designed apartments featuring dedicated workspaces, and suburban homes near emerging co-working hubs. Emerging lifestyle or regional markets where remote work is still influencing choices represent compelling value propositions.
Conversely, properties to avoid include apartments with poor internet connectivity, homes lacking any dedicated workspace, and properties in locations struggling to attract remote workers. The market has spoken clearly from 2020 to 2025: functionality for working from home isn't optional—it's essential.
The Permanent Transformation: From 2020 to 2026 and Beyond
The journey from March 2020's emergency response to 2026's mature market reflects more than cyclical change—it represents structural transformation. Working from home sustained increases suggest there may not be a return to pre-pandemic levels. Indeed, many workers under age 54 have reported they would leave their job or seek alternative employment if unable to access flexible work options.
The Australian real estate market valued at USD 206.8 billion in 2024 and projected to reach USD 305.8 billion by 2033, exhibiting a 3.99% growth rate, will see work-from-home accommodation playing an increasingly significant role in this expansion. Developers, investors, and homebuyers who recognised this transformation early between 2020 and 2025 benefited substantially. Those positioning for 2026 and beyond must accept that working from home functionality isn't a premium feature—it's baseline expectation.
The question facing Australian property markets isn't whether remote work will persist, but rather how quickly the built environment can continue evolving to meet this enduring demand. Based on the trajectory from 2020 to 2025 and forecasts for 2026, that evolution is accelerating, not decelerating. Properties embracing this reality will thrive; those ignoring it risk obsolescence in an increasingly discerning market where buyers and tenants know precisely what functionality they require—and won't settle for less.
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