From The High Country News (Jonathan Thompson):
In the spring of 2020, FIS Worldpay, a payment-processing company, sent more than 200 of its Durango, Colorado-based employees home to work remotely, in order to stem the spread of the novel coronavirus. Even when pandemic-avoidance measures were loosened over the summer and many workplaces filled back up, the 81,000-square-foot building remained dark. Then, in November, the Jacksonville, Florida-based company announced that the staff would continue to work remotely, and that the Durango building — the largest of its kind in town — would close for good.
This phenomenon — one-time cubicle workers becoming full-time telecommuters, liberated from corporate headquarters — deprived Durango of one of its largest private employers and has driven up office vacancy rates nationwide. Yet at the same time, it is also fueling housing booms in so-called “Zoom towns,” Durango included, as the born-again remote workers seek out more desirable areas.
Zoom towns are scattered across the United States, but the most popular ones seem to be small- to mid-sized, amenity-rich communities, with plenty of public land nearby, from Bend, Oregon, to Flagstaff, Arizona, along with a whole bunch of best-place-to-live-list towns. In most cases, their real estate markets were already overheated. But they exploded in the wake of the pandemic’s first wave, driving home prices to astronomical levels and putting homeownership even further out of reach for the typical working-class person.
The telecommuter-migration is just one of many reasons behind the current real estate craze. Rock-bottom interest rates have also contributed, along with wealthy investors seeking refuges during tumultuous times. “It’s clear that many buyers are being driven out of large cities by both COVID-19 and civil unrest,” wrote the authors of the Jackson Hole Report, regarding the recent uptick in homes priced over $3 million. “Most have been contemplating a move for some time, and felt that now was the right time.”
The Zoom economy has come at Durango from two directions. The housing market went berserk in the third quarter of 2020, and the median home price shot up to about twice the amount that a median-income earner could afford. Meanwhile, economic development officials are trying to figure out what to do with a giant, empty office building. One option: Convert it into affordable housing.
Jonathan Thompson is a contributing editor at High Country News. He is the author of River of Lost Souls: The Science, Politics and Greed Behind the Gold King Mine Disaster. Email him at email@example.com.