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Home becoming workplace for many American workers

The Internet will significantly change both where and how we live and work, according to research by John Baen, professor of finance, insurance, real estate and law.

For businesses, this means a surge in financial savings as the need for office space decreases.

"As more people begin to telecommute and work from their homes at least part of the time, the proximity of their homes to their offices becomes less important," says Baen.

Current estimates indicate that 19.6 million people, or 10 percent of all American adults, currently work from home at least one day a month during regular business hours.

For now, state employees can't take part in the trend. State law generally prohibits employees from working from home.

Baen says that the trend may not hurt the real estate industry, but it will change considerations for future homebuyers. Fewer people will be looking for homes close enough to work for a comfortable commute.

"Our homes won't just be the places we live. Increasingly, they will become places we work, shop, go to school and play. Accommodations to the new electronic economy, instead of location, will be the key factor in determining home value," Baen says.

If this trend continues, businesses will need less office space. Some companies that allow employees to combine working at home and working in the office have begun experimenting with shared office space — one employee uses the space while another works at home.

Baen predicts that the telecommuting trend will continue to increase because of its economic benefits for both employers and employees.

Companies such as AT&T are reporting real savings of $10,000 annually per employee, which is a direct result of such factors as reduced office space requirements, less absenteeism and lower turnover rates. Direct real estate savings alone account for about $6,000 per employee. At the same time, companies that allow workers to telecommute report significantly higher productivity.

The benefits to employees can include elimination of traffic and parking stresses and financial savings resulting from less unpaid absenteeism and reduced commuting expenses.

With the combination of telecommuting and other electronic trends, such as e-commerce shopping and distance learning opportunities, workers are free to find homes farther away from traditional metropolitan business centers.

In addition, the money that workers save by telecommuting can go toward housing. They are no longer bound to the cities in which they work, Baen says.

However, Baen warns that telecommuting may affect population centers — many people will head out to the countryside, emptying out the cities.

"The impact that telecommuting will have on how people interact is something else we'll have to consider," Baen says. "Daily face-to-face interactions that would normally occur in places like an office will be lost."

Additionally, he suggests that instead of renting a home or condo for a vacation, people will rent small condos, apartments or budget hotel rooms in city or suburban areas for a few days each week or month as temporary workplaces.

BY RUFUS COLEMAN
rcoleman@unt.edu

 

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