{"id":186704,"date":"2021-02-23T14:01:00","date_gmt":"2021-02-23T11:01:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/theres-a-hidden-financial-drawback-to-remote-working\/"},"modified":"2021-02-23T14:01:00","modified_gmt":"2021-02-23T11:01:00","slug":"theres-a-hidden-financial-drawback-to-remote-working","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/theres-a-hidden-financial-drawback-to-remote-working\/","title":{"rendered":"#\n  There\u2019s a hidden financial drawback to remote working"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2a39cd88a30\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2a39cd88a30\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/theres-a-hidden-financial-drawback-to-remote-working\/#The_rise_of_remote_working_may_provide_workers_freedom_to_live_where_they_want_%E2%80%94_but_that_doesnt_mean_theyre_saving_money\" >The rise of remote working may provide workers freedom to live where they want \u2014 but that doesn\u2019t mean they\u2019re saving money<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/theres-a-hidden-financial-drawback-to-remote-working\/#Jacob_Passy\" >Jacob Passy<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  There\u2019s a hidden financial drawback to remote working<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"The_rise_of_remote_working_may_provide_workers_freedom_to_live_where_they_want_%E2%80%94_but_that_doesnt_mean_theyre_saving_money\"><\/span>\n  The rise of remote working may provide workers freedom to live where they want \u2014 but that doesn\u2019t mean they\u2019re saving money<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000174720\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Employers across the country quickly embraced remote working when the COVID-19 pandemic began last year, and in many cases companies have suggested the new working arrangement was a success.<\/p>\n<p> Remote working becoming the new normal was a godsend for many employees, particularly those who worked in major metropolitan areas along the coasts where the cost of housing was high. Suddenly, these workers seemingly had the freedom to work from anywhere \u2014 meaning they could move further out into the suburbs where larger homes are cheaper without having to necessarily worry about the burden of a long commute.<\/p>\n<div class=\"paywall\">\n       But new research suggests that as people start to choose where to live with remote working in mind, workers and companies alike won\u2019t necessarily be reaping major savings.<\/p>\n<p>A <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nber.org\/system\/files\/working_papers\/w28483\/w28483.pdf?utm_campaign=PANTHEON_STRIPPED&amp;amp%3Butm_medium=PANTHEON_STRIPPED&amp;amp%3Butm_source=PANTHEON_STRIPPED\" class=\"icon none\">new working paper<\/a> from researchers at Harvard University examined how much households with remote workers spent compared with their peers who commuted to work, prior to the COVID-19 pandemic. And while it might be feasible that these remote-working households could move to more distant, potentially cheaper locales, in reality they didn\u2019t necessarily save money.<\/p>\n<p>The amount of money households spent on housing, as a share of overall spending, was more than 7% higher for remote households than for non-remote households who lived in the same commuting zone. \u201cRemote households\u2019 higher housing expenditures arise from larger dwellings (more rooms) and a higher price per room,\u201d the researchers wrote.<\/p>\n<p>Moreover, remote workers weren\u2019t significantly more inclined to up and move to a more rural location prior to the pandemic, meaning that the locations they chose didn\u2019t necessarily offer savings to counteract the expensive need for more space.<\/p>\n<p>One factor that <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared to prevent many remote workers from moving to more distant and affordable areas was the fact that most households are mixed: Over half of the remote households in the researchers\u2019 sample included at least one adult who did still work outside the home. \u201cThese households may need to locate closer to an urban core to accommodate commuting needs, whereas fully remote households may be able to more freely sort to areas with different amenities or cheaper prices per square foot,\u201d the researchers wrote.<\/p>\n<p>People may also be inclined to continue living in more expensive areas if they have amenities such as entertainment or better schools.<\/p>\n<p>For companies, the higher cost of housing that remote workers incur muddled how much they stood to save by transitioning to a remote working environment on a more permanent basis. Companies that make the switch will save money on rents for office real-estate, but they might need to offer compensation to the affected workers to cover their work-related housing costs.<\/p>\n<p>In some markets, the high cost of housing relative to the cost of real estate dwindles the potential savings. New York, for instance, was reported to have the third-highest commercial rents in the country as of 2020, but only ranked sixth when it came to the savings for remote work because of how high the local housing costs were.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jacob Passy\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jacob_Passy\"><\/span>Jacob Passy<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D2AA8051A7DA%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# There\u2019s a hidden financial drawback to remote working &#8221; The rise of remote working may provide workers freedom to live where they want \u2014 but that doesn\u2019t mean they\u2019re saving money Employers across the country quickly embraced remote working when the COVID-19 pandemic began last year, and in many cases companies have suggested the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":186705,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-186704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/186704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=186704"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/186704\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/186705"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=186704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=186704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=186704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}