Working from Home in 2025: The New Normal and the Real Estate Outlook

The #COVID19 pandemic made #WorkFromHome (#WFH) a mainstream reality. Now, as COVID is seen as a mild, ongoing illness, WFH is evolving in response to economic, political, and lifestyle trends.

Residz Team 5/16/2025 12:26:08 PM 2 min read

The #COVID19 pandemic made #WorkFromHome (#WFH) a mainstream reality. Now, as COVID is seen as a mild, ongoing illness, WFH is evolving in response to economic, political, and lifestyle trends.

Key Trends and Statistics

Before COVID, about 20% of Australians worked from home regularly. During the pandemic, this soared to 40%. In 2025, the proportion remains high at around 36–37%. Hybrid work is now the standard, with most Australians working from home 1.5–2 days per week. Over half of workers would consider changing jobs if forced back to the office full-time.
#FlexibleWork is a strong preference, with 76% of workers globally valuing flexibility over when and where they work.

Political Backdrop

Peter #Dutton’s failed push to force public servants back to the office, followed by his election defeat, highlighted the public’s strong support for flexible work and signalled that rigid return-to-office mandates are out of step with workforce expectations.

Economic Influences

Falling #InterestRates and easing #Inflation (now at 2.4–2.9%) are improving affordability. Lower rates may encourage more people to borrow for #HomeOffice upgrades or to buy homes with dedicated workspaces, further embedding WFH in Australian lifestyles.

Lifestyle and Technology Shifts

The rise of #EVs (#ElectricVehicles) fits with WFH: fewer commutes mean more home charging and interest in energy-efficient homes.
Workers cite improved #WorkLifeBalance, reduced #Commute, cost savings, and better #MentalHealth as major reasons for preferring remote or hybrid work.
Employers are increasingly accepting of hybrid models, with 43% seeing WFH as positive for productivity.

Real Estate Market Outlook for 2025 and 2026

Most experts predict #AustralianProperty prices will rise in 2025, driven by improving affordability, rising incomes, and anticipated interest rate cuts. About 65% of real estate agents expect house prices to rise, with a quarter predicting gains above 5%. Many of those now choosing to purchase are more comforted by the established WFH trend.
National forecasts suggest house prices will increase between 4–6% in 2025, with units set to grow at 3–5%. The strongest growth is expected in Queensland, especially Brisbane, and in Perth, where population growth is outpacing supply. The clear move to regional areas has been a contributor to the higher growth expectations outside Sydney and Melbourne.
However, price growth is still expected to be stronger overall in the second half of 2025 as interest rate cuts take effect. In 2026, growth is forecast to accelerate, with house prices in some cities like Sydney and Melbourne predicted to rise by 6–8%.
Units and townhouses are expected to outperform detached houses due to ongoing affordability constraints, especially in major cities. Family-friendly apartments in desirable neighbourhoods are likely to see strong capital growth.
Regional property in general remains in demand as workers continue to embrace WFH and hybrid models, leading to renewed interest outside capital cities.

What’s Next?

Hybrid work is here to stay, with ongoing demand for #Flexibility, #Autonomy, and #LifestyleChoice.
Expect continued innovation in #Coworking spaces, #RemoteWork tech, and home design.
The real estate market will be shaped by these trends, with WFH influencing the types of properties in demand and supporting price growth, especially for homes with dedicated office space.

Hashtags:
#WorkFromHome #HybridWork #FlexibleWork #HomeOffice #EV #InterestRates #Inflation #Lifestyle #Productivity #MentalHealth #Commute #RemoteWork #Coworking #Election2025 #Dutton #Australia #AustralianProperty #RealEstate #PropertyMarket

The future of work is flexible and digital, and it’s reshaping both how we work and where we want to live. The Australian property market is set for continued growth as WFH becomes a permanent part of our lives.