Benjamin Tal doesn’t think a remote work trend will last for long

Because of the COVID-19 pandemic, many Canadians switched from the downtown city cores to working from home. Nevertheless, according to Benjamin Tal, deputy chief economist at CIBC World Markets Inc., workers predicting a long lasting trend of remote work may be exaggerating.

In his opinion, Canadians may face certain risks when remote work is no longer possible after the pandemic.

“I think this trend is unsustainable,” – Tal said. “It will probably continue for the next few months, but let’s picture our lives a year or ten years from now. Many workers will return to offices. Many of them work in large cities, and all of a sudden you understand that you have to commute about two or three times a week.”

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Tal believes ending the remote-work trend will not bring positive consequences for the economy. When Canadians return to working in offices, they will have less flexibility and longer commute times. Moreover, it’s unknown how many employers will continue the remote work trend when the pandemic is over.

“And yes, now your job allows you to work from home, but what if your next one doesn’t?”, – Tal asks.

He says Canadians who purchased a property in remote areas outside Toronto, Montreal and Vancouver may have to invest into living arrangements in the city to be closer to work.

Such a change may affect the suburban housing market negatively, Tal added. The pandemic created optimal market conditions for many Canadians to buy a home in a remote area at a lower price. However, he warns that price growth in these areas may be risky.

“The real question is to what extent home prices in remote areas are growing too fast?”