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I think most places who want to do offshoring have already done so. A lot of companies are considering adjusting pay for people who don’t come into the office accordingly. If you work for a company in a high COL area and elect to move to a low COL area, there is no need for that company to continue to pay the high COL area salaries. Plus, a lot of companies that have offices in city centers are there to attract a certain type of talent. If they didn’t want that talent, they would likely relocate elsewhere.
If this "dream," I guess, for lack of a better term, comes to pass I think the salaries of highly paid professional employees are going to follow after the office downsizing. As you point out, if you do not need to locate in a high rent area to attract a quality workforce, the salaries will go down because people will work for less. Eventually, companies will realize they can just offshore a lot of this stuff to China and India. I think they'll also see they have a lot of fat they can trim from their workforces, if social media during the pandemic was any indication. As my grampy used to say, be careful what you wish for! The white collar class could suffer the same thing that the blue collar class has been suffering for the past few decades.
If this "dream," I guess, for lack of a better term, comes to pass I think the salaries of highly paid professional employees are going to follow after the office downsizing. As you point out, if you do not need to locate in a high rent area to attract a quality workforce, the salaries will go down because people will work for less. Eventually, companies will realize they can just offshore a lot of this stuff to China and India. I think they'll also see they have a lot of fat they can trim from their workforces, if social media during the pandemic was any indication. As my grampy used to say, be careful what you wish for! The white collar class could suffer the same thing that the blue collar class has been suffering for the past few decades.
I doubt you can offshore most high cost white collar workforce offshore given time zone / language / culture issues. Tech and software is one exception but most other white collar jobs will be fine. I'm more worried about AI / Tech replacing them than offshore.
I doubt you can offshore most high cost white collar workforce offshore given time zone / language / culture issues. Tech and software is one exception but most other white collar jobs will be fine. I'm more worried about AI / Tech replacing them than offshore.
Same. I had to deal with a professional services firm who offshored our service earlier this year to India, and they were unavailable from 9am to 3pm every day. It's quite difficult to get decent service if your day only overlaps by a couple hours.
I think you're right though that there are a whole lot of white collar professions that be automated.
I’m considering moving to Chicago sometime after Covid. I rely on public transit and was wondering what anyone thinks about the future of public transit in Chicago. I’ve heard different things about the future of public transit in this country post Covid, but I wanted to hear input specifically from Chicagoans. I’m basically wanting to get away from small towns and small cities as they are too small minded, I’ve always been a big city person. That said, I think it’s best to continue researching a potential move.
I'm considering a couple places to move to post covid, Chicago being one of them. I know the city fairly well, I've spent a lot of time there.
I believe Chicago can't wait until this is over to be CHICAGO AGAIN!
City people will always love the hustle and bustle, the conveniences, walking out your door and sitting down at a sidewalk cafe in 1-5 minutes, going to the theater, all the great restaurants, people watching, the parks, the beaches, the shops on the mag mile. Seeing friends, making friends, dinner parties, large gathering wherever!
I anticipate a reduction in mass transit for a couple years, those that don't want to live downtown will move to Schaumburg or some other hellish place, (if they don't already commute from there to downtown) and people who love people will be snatching the available condos and apartments in the blink of an eye. The population using the CTA will then start to increase and non abate for a hundred years until the next pandemic.
Those who wish the demise of large cities because of, well you know, will find out that youth and vibrancy always will love cities...such interesting fascinating diversity.
I'm considering a couple places to move to post covid, Chicago being one of them. I know the city fairly well, I've spent a lot of time there.
I believe Chicago can't wait until this is over to be CHICAGO AGAIN!
City people will always love the hustle and bustle, the conveniences, walking out your door and sitting down at a sidewalk cafe in 1-5 minutes, going to the theater, all the great restaurants, people watching, the parks, the beaches, the shops on the mag mile. Seeing friends, making friends, dinner parties, large gathering wherever!
I anticipate a reduction in mass transit for a couple years, those that don't want to live downtown will move to Schaumburg or some other hellish place, (if they don't already commute from there to downtown) and people who love people will be snatching the available condos and apartments in the blink of an eye. The population using the CTA will then start to increase and non abate for a hundred years until the next pandemic.
Those who wish the demise of large cities because of, well you know, will find out that youth and vibrancy always will love cities...such interesting fascinating diversity.
It's really hard to alter trends. I don't think this 1-year virus, which was partially overblown for political reasons, is going to alter what's been happening for 35 + years.
Way before the Covid, young Chicagoans have had children and not wanted those kids going to school in an urban area. So they've moved to the 'burbs. It would be easy for some journalist to get them to admit the Covid and crime factored in their decision in order to push a narrative that people are fleeing the City in droves because of this Crisis. But this has been happening for decades.
It's really hard to alter trends. I don't think this 1-year virus, which was partially overblown for political reasons, is going to alter what's been happening for 35 + years.
Way before the Covid, young Chicagoans have had children and not wanted those kids going to school in an urban area. So they've moved to the 'burbs. It would be easy for some journalist to get them to admit the Covid and crime factored in their decision in order to push a narrative that people are fleeing the City in droves because of this Crisis. But this has been happening for decades.
Any young family that can afford to live in Chicago's better areas already put their kids in private schools. Covid isn't going to alter that. If anything, I think young families move to the suburbs because they can't afford downtown Chicago. Try to put 2 parents and 2 kids into a 700 sq ft condo at $2,000 a month. That isn't a bad thing about Chicago though--it's a good thing. Rent wouldn't be high if it wasn't so desirable.
Haven't looked at available properties lately have you? Even with covid and job losses and the rest of it, a regular family of 4 with an income of 75,000 can barely touch Chicago.
Any young family that can afford to live in Chicago's better areas already put their kids in private schools. Covid isn't going to alter that. If anything, I think young families move to the suburbs because they can't afford downtown Chicago. Try to put 2 parents and 2 kids into a 700 sq ft condo at $2,000 a month. That isn't a bad thing about Chicago though--it's a good thing. Rent wouldn't be high if it wasn't so desirable. Haven't looked at available properties lately have you? Even with covid and job losses and the rest of it, a regular family of 4 with an income of 75,000 can barely touch Chicago.
Actually I have. And you'll find many comments from me saying esentially that for a city that supposedly everybody's riding out of into the low tax outdoorsey great weather work from home with mountain view lifestyle, the housing market here sure is awfully strong.
I look at small multi units and most solid fairly priced properties, including in formerly ignored neighborhoods like Little Village and North Lawndale, draw multiple offers, and cash coastal investors if it's east of Kedzie. Amateurs are bidding up things all the way up to Pulaski.
According to Zillow, housing values are expected to appreciate over 10% over the next 12 months in South Lawndale. Many other neighborhoods are in the same boat. Weird these investors are not seeing the utopian non-urban future that many are predicting.
The price increases in Little Village and Lawndale is driven by economics, pricing scarcity, record low mortgage rates and some moving from high rises to the 2-3 flats for more space and a yard.
The Chicago and CTA arguments need to be split in two because not 100% correlated. Chicago's population has remained flat over the last 10 years. So despite a BOOM of HQs relocations to Chicago, building development and people moving to cities pre-covid...Chicago still couldn't grow its population. Single and DINKs (dual income no kids) white collar high earners moved in...but families and low income moved out.
Now flip to the CTA...those same single and DINKs can work remote and no longer need CTA as often. That trickles down and affects others taking CTA to service same downtown offices, restaurants, bars, shops, janitorial services, etc. So while Chicago may rebound due to being a great low COL big city the CTA will not and service contraction can be expected.
The price increases in Little Village and Lawndale is driven by economics, pricing scarcity, record low mortgage rates and some moving from high rises to the 2-3 flats for more space and a yard.
The Chicago and CTA arguments need to be split in two because not 100% correlated. Chicago's population has remained flat over the last 10 years. So despite a BOOM of HQs relocations to Chicago, building development and people moving to cities pre-covid...Chicago still couldn't grow its population. Single and DINKs (dual income no kids) white collar high earners moved in...but families and low income moved out.
Now flip to the CTA...those same single and DINKs can work remote and no longer need CTA as often. That trickles down and affects others taking CTA to service same downtown offices, restaurants, bars, shops, janitorial services, etc. So while Chicago may rebound due to being a great low COL big city the CTA will not and service contraction can be expected.
I was joking with a realtor recently that east of Kedzie, we're always seeing the big money investors pulling up to the showings in their luxury SUVs. It's like, "oh man, a BMW SUV, time to go home," LOL!
It's just gotten to be a waste of time to look at these places from the MLS because their cash will trump your financing and appraisal contingencies. They also tend to bid the full asking price, or even more if they feel there's competition. They're also making cold calls to building owners I know.
West of Kedzie up to Pulaski are real humans. A more normal market but you can expect multiple offers on good properties that are priced correctly. I don't know where they come from, hi-rise or not, but, for whatever it's worth, all this interest is along a CTA L transit corridor. Whether that's what it is or whether they think Pilsen will spill over into South Lawndale is anyone's guess. My feeling is it's a combination of both.
As the saying goes, we can tell time and time can tell us. Really, that's what it's going to boil down to. We have our predictions and opinions but only time will tell what actually happens. It would be a seismic shift in urban planning if there is no longer value in transit oriented development but, I will concede, anything is possible.
I took the CTA all last weekend. Ridership looked strong on Red and Brown lines.
Brown was quieter than Red for sure. But there were two times on Red Line where there were no seats and lots of people standing.
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