There are plenty of residents employed as remote workers in Colorado. So, why are some companies advertising for employees anywhere else but Colorado. A Wall Street Journal report from June 17, 2021 explained how a new state law that requires employers to disclose salaries for open positions are advertising jobs available anywhere in the U.S. but Colorado.
The legislation aim was to ensure that women are paid equally to men, a first-in-the-nation policy that requires that companies post internal advancement opportunities and salary. The law that went into effect January 1, 2021 creates a vehicle for employees to file complaints if they believe they are being underpaid because of their gender. It is called The Equal Pay For Equal Work Act and here it is in the complete form.
Does Remote Work Impact Colorado Real Estate?
It does not appear that this legislation will affect the local real estate market since companies with offices in Colorado have to comply with this measure anyway. Although some large companies outside the state are limiting posting of remote work in Colorado this is not making a significant impact on real estate. Local companies have been moving to offering more choices of hybrid work situations to residents that already reside in the state.
Currently the impact is low, but the future will tell if businesses move from high regulation states to more favorable business climates. If regulations become tougher down the road, they might opt for other places like Salt Lake City, Boise, or Nashville, other areas that have less business regulations.
It’s Still a Matter of Supply and Demand
Moving remotely has opened possibilities never before offered. The home office business is booming and one Denver tech company whose CEO David Boskovic that does data onboarding, called Flatfile, has offered their 35 employees $10,000 stipend for a home office re-do to expedite his remote-first formula. This allows for the employee to hire an interior designer to come in and provide an extreme home-office makeover.
The state offers many options for suburbs, mountain communities, or isolated housing, but, some areas there are extremely limited quantity available for sale or rent where families can reside and work remotely.
The idea of both where we live and where we work has shifted with working remotely having become the norm. That immediately shifts how commercial real estate and office space development will look like in the future. Suburbs and smaller towns seem to have become very attractive as the population moves from city to suburbs or are buying or renting in areas which were not as popular before.
Throughout this shift, it hasn’t slowed down residential buying. The buying interest has just modified locations. Smaller cities and suburbs seem to have a better quality of life and a better cost of living, which in anybody’s mind becomes a win-win situation. As people begin to realize that they do not have to be tied down to a physical location for their employment, the residential real estate market will keep realizing a constant movement. This also means reduction of inventory.
The End Result
In a direct quote from Forbes: “From bidding wars in rural communities and the suburbs to urbanites sizing up to carve out dedicated workspaces at home, this spring may yield more transactions than any quarter in recent memory. Where and what people buy over the coming months will also offer insight into the types of properties likely to be in high demand in the near future.”
A different type of working and living space movement has been set in motion. The landscape continues to evolve and emerge since remote working is seemingly here to stay. The real estate industry needs to continue to pay attention to the behavioral change of its consumers. Keeping close watch to these new recent shifts gives real estate the opportunity for the industry to adapt and evolve to cater to the needs of the people and the ever emerging market.
Finding and buying a home is an experience that should be enhanced by working with someone who is concerned about you, treats you same as family, and strives to protect your interests with dedication and knowledge. The expert specialists at Katchen Company are respected team players who will complement your buying experience with their expertise and insights into the Denver market.