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Share of Remote Workers Increases Despite Drop in Weekly Teleworked Hours

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The total share of workers teleworking or working from home for pay has increased from 2023, according to the latest Telework or Work at Home for Pay Survey from the Bureau of Labor Statistics. In June 2023, 19% of the labor force teleworked on a non-seasonally adjusted basis. This share rose to 22.3% in June 2024, even though the total number of workers remained stable. However, the average weekly hours of remote work among teleworkers decreased slightly by 1.7 hours, from 28.7 to 27 hours a week. This decline is due to a shift toward hybrid work, with the proportion of people working all their hours remotely dropping from 53.2% to 48.4%.

Across all occupations, the share of teleworkers has increased, while the average weekly telework hours have declined. Management, professional, and related occupations had the highest share of teleworkers, with 37.8% working remotely in June, averaging 27.1 hours per week. In contrast, natural resources, construction, and maintenance occupations had the lowest share, with only 3.0% teleworking for an average of 21.4 hours a week.

By industry, financial activities saw the largest increase in teleworkers, rising by 7.5 percentage points from 44.9% in June 2023 to 52.4% in June 2024. Meanwhile, the average weekly telework hours for this industry decreased modestly from 30.4 hours to 28.8 hours. The information industry, previously the leader in telework, increased by 3.8 percentage points, from 47.8% to 51.6%. Its average weekly telework hours declined by 1.1 hours, from 31.4 to 30.3 hours.

The increase in teleworking has significant implications for the housing and real estate market. With more people working from home, there may be a growing demand to remodel their current homes to have dedicated office spaces. Additionally, commercial real estate could face challenges as businesses reconsider their office space needs, potentially leading to an increase in flexible workspaces or a reevaluation of leasing strategies.

There are also policy proposals that NAHB supports which aim to repurpose underused commercial spaces into residential real estate, such as the “Revitalizing Downtowns and Main Streets Act” that proposes a 20% tax credit to encourage converting vacant commercial properties into affordable housing, thereby addressing the nationwide housing shortage.

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Lowest Homeownership Rate for Younger Householders in Four Years

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The U.S. homeownership rate was 65.6% in the second quarter of 2024, unchanged from the first quarter of 2024, according to the Census’s Housing Vacancies and Homeownership Survey (HVS). However, this marks the lowest rate in the last two years. The homeownership rate is below the 25-year average rate of 66.4%, due to a multidecade low for housing affordability conditions.

The homeownership rate for the head of households (householders) under the age of 35 decreased to 37.4% in the second quarter of 2024. Amidst elevated mortgage interest rates and tight housing supply, affordability is declining for first-time homebuyers. This age group, who are particularly sensitive to mortgage rates, home prices, and the inventory of entry-level homes, saw the largest decline among all age categories.

The national rental vacancy rate stayed at 6.6% for the second quarter of 2024, and the homeowner vacancy rate inched up to 0.9%. The homeowner vacancy rate is still hovering near the lowest rate in the survey’s 67-year history (0.7%).

The homeownership rates for householders under 35, between 35 and 44, and 65 and over decreased compared to a year ago. The homeownership rates among householders under 35 experienced a 1.1 percentage point decrease from 38.5% to 37.4%. Followed by the 35-44 age group with a 0.9 percentage point decrease from 63.1% to 62.2%. Next, were households with ages 65 years and over, who experienced a modest 0.3 percentage point decline. However, homeownership rates for the 45-54 age group inched up to 71.1% in the second quarter of 2024 from 70.8% a year ago. The homeownership rate of 55-64 year olds edged up to 75.8% from a year ago.

The housing stock-based HVS revealed that the count of total households increased to 131.4 million in the second quarter of 2024 from 130 million a year ago. The gains are largely due to gains in both renter household formation (855,000 increase), and owner-occupied households (515,000 increase).

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Share of Non-Conventional Financing Increased in 2023

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Nationwide, the share of non-conventional financing for new home sales accounted for 32.4% of the market per NAHB analysis of the 2023 Census Bureau Survey of Construction (SOC) data. This is a significant 4.3 percentage point increase from the 2022 share of 28.1%. As in previous years, conventional financing dominated the market at 67.6% of sales, albeit lower than the 2022 share of 71.9%.

Non-conventional forms of financing, as opposed to conventional mortgage loans, include loans insured by the Federal Housing Administration (FHA), VA-backed loans, cash purchases and other types of financing such as the Rural Housing Service, Habitat for Humanity, loans from individuals, or state or local government mortgage-backed bonds. The reliance on non-conventional forms of financing varied across the United States, with its share at almost 40% in West South Central but only 17.1% of new single-family home starts in the Middle Atlantic division.

Nationwide, cash purchases were the majority share of non-conventional financing of new home purchases, accounting for 14% of the market share, slightly up from 13% in 2022. NAHB survey based on builders reported that for 2024, all-cash sales are a higher share at 22%. FHA-backed loans accounted for 12%, whereas in 2022, it was only 8% of the market share. The share of VA-backed loans was at 4% market share in 2023, while Other Financing was 3% of market share.

Regionally, cash financing held the highest share in East South Central, where 24.6% of all homes started were purchased with cash. Except for the South Atlantic, West South Central, and the Pacific, cash purchases led non-conventional financing in the remaining six census regions. Cash purchases accounted for 22.0% in East North Central, 16.9% in New England, 12.3% in Mountain, 12.0% in Middle Atlantic, and 10.6% in West North Central region.   

FHA-backed loans accounted for the majority of all non-conventional financing in the West South Central division accounting for 20.8% of the homes started. This share has gone up considerably  from 12.9% in 2022. The New England division reported the lowest FHA-backed loans with only a share of 1.2% of the homes started in 2023.

VA-backed loans were most used in the South Atlantic division, which accounted for 5.9% of non-conventional forms of financing. In New England, none of the homes started used VA-backed loans in 2023.  

Other financing such as the Rural Housing Service, Habitat for Humanity, loans from individuals, state or local government mortgage-backed bonds was highest in East North Central where it was collectively 5.6% of market share, while Middle Atlantic division reported the lowest share at 0.9%.

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