Home Prices Are Booming. Here’s What It Means for Your Business–Even If You’re Not in Real Estate

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The United States is entering 2022 with a 3.8 million housing unit shortfall, even as home-buying has been on a major tear since Covid-19 began. As LinkedIn’s 29 Big Ideas for 2022 post noted, home prices in growing cities like Austin, rose more than 40 percent.

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The combination of high prices and remote work means that companies need to plan aggressively for a new environment in 2022. Here are three important decisions small business owners should focus on.

Adjust compensation to remain competitive.

Some professionals, particularly in the software engineering and data science spaces, are seeing their salaries rise 100 percent or more when switching jobs. Increased costs for housing will only fuel that fire, and companies that want to attract or retain talent need to be aggressive in pursuing information about competitive salaries and making competitive offers.

Embrace remote-first culture.

Many jobs that used to be thought of as simply impossible to do outside of an in-office culture now seem completely possible in remote-first and/or hybrid environments. Housing costs factor into that, as employees who don’t have to be very close to their office might choose a less-expensive housing option farther away. Building a culture that embraces remote working allows you to keep those employees happy, and attract talent from a much larger pool.

Consider business locations carefully.

Where you choose to locate your offices and other operations that can’t be remote will affect your ability to attract talent and certain kinds of customers. Where you are could matter a lot — and you might make different choices when you look at comparative costs of housing around the country.

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