The number of renters working from home is steadily declining, signaling a significant shift in the residential and remote work markets. In 2023, four million rental units in the U.S. were occupied by heads of households who worked from home, marking a 20% drop from the peak of five million in 2021. This data, analyzed by Chandan Economics using the Census Bureau’s 2023 American Community Survey, highlights a notable trend despite the total number of full-time work-from-home renters still being 184% higher than pre-pandemic levels.
“As we look ahead, two competing truths will impact labor markets and rental markets alike,” the Chandan Economics report noted. “The prevalence of remote work is considerably more widespread than it was a half-decade ago — and Pandora is not going back into her box. At the same time, return-to-office momentum accelerated in 2024, and these data are likely to show continued declines in future releases.”
This tension remains evident in April 2025 as companies grapple with return-to-office (RTO) policies. Major firms such as Amazon, Salesforce, IBM, Dell Technologies, JP Morgan Chase, Goldman Sachs, HSBC, Barclays, and Citigroup have implemented full-time RTO mandates. Additionally, the Trump administration has required all federal agencies to end remote work arrangements. However, hybrid schedules continue to dominate workplace practices despite these high-profile mandates. According to Flex Index data, 68% of companies offer location flexibility, while only 32% enforce strict in-office policies.
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“For the most part, we haven't seen return-to-office mandates translate into leasing demand," said Phil Mobley, CoStar's national director of office analytics. "There may be fewer move-outs now, but there hasn't been much of an increase in leasing activity to drive any meaningful growth. The sheer force of math suggests that we’re going to be looking at high vacancy for a long time, and it will probably keep rising over the next 12 to 18 months."
The decline in renters working from home also poses challenges for landlords seeking to attract tenants who continue remote work arrangements. The National Apartment Association has emphasized the need for upgrades such as floor plans accommodating dedicated workspaces, reliable broadband and cellular service, and common areas equipped for coworking needs. Renters are increasingly demanding larger living spaces and outdoor areas like patios or balconies as part of their work-from-home preferences.
Meanwhile, employers appear reluctant to fully abandon remote work models. A February 2025 survey by Stanford’s Institute for Economic Policy Research (SIEPR) found that only 12% of business executives with hybrid or remote workers plan to implement RTO mandates within the year ahead. Even among these mandates, more than a quarter involve requiring on-site work only one to four days per week. “These findings suggest that many employers like remote work because it reduces floorspace needs, raises productivity, and lowers quits,” SIEPR commented.
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