Remote employees living increasingly away from offices, reveals study

The findings show that the average distance between employees’ residencies and offices increased to 27 miles in 2023

A recent study by economists at Stanford and Gusto reveals a significant shift in the average distance between an employee’s home and their company office location, indicating that workers now live further from their offices compared to pre-COVID times.

The study analyzed employees’ home addresses in relation to their workplace locations, highlighting a noteworthy change in commuting distances.

The findings show that the average distance between employees’ residencies and offices increased to 27 miles in 2023. 

This shift is part of a broader phenomenon termed the “zip code shift,” the number of individuals residing over 50 miles away from their workplace surged more than fivefold, rising from 0.8% to 5.5%.

Millennial workers, specifically those aged 30-39, became the demographic living farthest from their workplaces.

In 2023, the distance between their homes and company offices experienced the most substantial increase compared to other age groups.

Interestingly, the study identified a correlation between higher earnings and increased distances between offices and employee residences.

In 2018, individuals earning $10,000 to $50,000 annually lived, on average, 11 miles from work, while those earning over $250,000 per year resided 12 miles away. 

By December 2023, the distance for the lower-income group rose to 18 miles, whereas the highest earners increased their average distance to 42 miles.

The study also highlighted the pandemic’s enduring impact, emphasizing that remote and hybrid work arrangements represent one of its most persistent legacies.

Source: Newsroom

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