What is the outpost economy?
The outpost economy is defined as the rise of a more dispersed economy and employment base away from major cities, to smaller cities with a high quality of life that draws workers who have become untethered from their offices in major cities.
Will this impact the Boston rea estate market?
Clearly, this has implications for the Boston real estate market – on both primary markets, as corporate headquarters become decentralized, and on secondary markets, as they evolve into “outpost economies.”
Takeaways on how it will impact the Boston condo market:
- Prior to COVID-19, many workers built their lives around downtown Boston where they were employed. But, today, Millennials and younger workers are nesting, focusing on purchasing homes in the suburbs and like raising families there. The pandemic has enabled them to do this due to greater acceptance of remote working.
- Still, the office is not dead. Many remote workers have already returned to the office, and offices are migration evolving as well. Employers may end up leasing smaller spaces in secondary markets to allow employees in those areas to work from those hubs.
- Despite the rise of many outposts, primary markets like New York. Boston and San Francisco have been economic hubs for major industries for many years and aren’t expected to go away overnight.