Government workers’ push for remote work could drive down urban housing premiums

The Public Service Alliance of Canada’s contract settlement with the federal government has given 120,000 of its members “additional protection when subject to arbitrary decisions about remote work,” which may result in an increased demand for suburban homes and lower the demand for office space and secondary and tertiary services such as retail and restaurants near and around those offices.

At the same time, the goal to return to pre-pandemic transit ridership levels in places like Ottawa, where office workers are abundant, will become even more challenging to achieve because tens of thousands of pre-pandemic daily commuters will disappear at least partially from the transit network.

The federal government is currently pushing back on PSAC demands because it believes such changes would limit managers’ ability to coordinate teams.

On the surface, it seems like a typical labour dispute. But it could impact how and where people live, work and play. If the workers’ right to work remotely is recognized in their contracts and they are free to work remotely (from home or elsewhere), the demand for real property will shift even further to low-density suburbs and beyond, and away from high-density urban cores.