Return-to-Work Policies Are Reshaping Housing Choices: Should Homeowners Stay or Sell?

It's been more than five years since the COVID-19 pandemic enabled millions of workers to relocate and to work remotely, sparking a homebuying surge in previously unthinkable spots—rural towns, beachside locales, and even different parts of the world.

Some of those pandemic buyers stretched their budgets to afford larger homes or better locations, betting on a permanent lifestyle shift. 

Now, return-to-office mandates from Amazon, Walmart, JPMorgan Chase, and many other employers are forcing an uncomfortable reckoning. Workers who relocated face a stark choice: maintain the life they've built, or upend it again to accommodate their employer.

Real estate convention holds that homeowners should stay put for at least five years to recoup transaction costs (though that thinking might be outdated). Some pandemic buyers have crossed that threshold. But selling may not feel automatically like the right answer, especially in today's market where mortgage rates have more than doubled since 2021. 

Should you leverage your home's equity to offset commute costs and stay put? Could renting out your home cover a smaller place near the office? Or is selling and relocating closer the only sustainable path forward? Here's how to run the numbers to make the choice that actually works for your situation.

First decide: Do you even have a decision to make?

If you've moved across the country and your employer wants workers to return to the office five days a week, selling might not be your only option; you could also rent out your current home and find a place near the office, preserving your low mortgage rate and the equity you've built.

On the other hand, if you're already near your office but your commute is long or difficult, then another possibility—making the commute work—enters the equation. If you're at that point, don't do anything rash. 

“If your commute is under one hour, you don’t need to rush to a decision. You can make the commute and decide if it’s something you don’t mind continuing or if you can’t manage traveling that far to and from work every day,” says Melanie Musson, a finance expert with Quote.com.

Once you know whether the commute is sustainable, it's time to run the numbers.

Run all of the numbers, including your own value

To calculate costs and upside, you need three critical figures: your home's equity, your true commute cost, and what each scenario actually costs over time.

Most homes purchased in the early months of the pandemic have likely appreciated substantially—home prices rose 53% between the first quarter of 2020 and the fourth quarter of 2024, with some additional, slower growth in 2025. Take your home's current market value (check recent comparable sales or use Realtor.com's home value estimator), subtract your mortgage balance, then subtract 8%-10% for selling costs (agent commissions, closing costs, repairs). That's your real equity if you sell.

This number will be impacted by just how long you’ve been in this home.

“If you’ve lived in a house for less than two years, you’ll be responsible for capital gains taxes on the amount your home has appreciated,” says Musson. 

Then calculate your commute costs. Most people dramatically underestimate this number. For example: An 80-mile daily round trip for 250 workdays equals 20,000 miles annually. At the IRS rate of 70 cents per mile, that's $14,000 in vehicle costs alone—and doesn't factor parking, tolls, or even the value of your time.

Then it’s time to figure out your break-even point. Compare five-year costs for staying (commute expenses) versus selling (transaction costs and taxes, plus higher housing costs from a new mortgage at current rates, minus those commute savings). Often the numbers are closer than you'd expect—especially once you factor in losing your low mortgage rate.

If the math works to stay

A home equity line of credit (HELOC) can fund solutions that make staying viable: a down payment on a small weekday apartment near the office, a reliable commuter vehicle, or prepaid transit passes. You're converting equity into tools that reduce commute burden without selling.

Consider building an accessory dwelling unit (ADU) if local zoning allows—construction costs of $100,000-$200,000 can generate $18,000-$24,000 annually in rent, directly offsetting commute costs. If your RTO policy is hybrid (two to three days weekly), you could rent a room in your home while staying near the office those nights, or use short-term rental platforms during your away weeks.

If you're only commuting two to three days a week, a 90-minute commute becomes far more tolerable—that's six hours weekly instead of 10. The occasional long commute beats upheaval if the total weekly time is manageable.

If the math works to sell

After selling costs, your equity becomes your down payment—but remember, you're refinancing from a 3%-4% rate to current rates around 7%. A $1,500 monthly mortgage payment could easily double for an equivalent home, even with equity down. The solution: downsize strategically. A home 20%-30% smaller in a better location can keep payments similar while dramatically cutting commute costs and time.

The key isn't just getting closer to the office—it's finding what real estate experts call the "commute sweet spot." This is the distance where occasional travel is manageable without sacrificing your quality of life or financial stability.

"I would argue that while location is part of the issue, frequency is also a critically important part of the equation," says Eric Croak, a CFP and accredited wealth management advisor. "How often and how far do you really have to go?" 

Focus your search on areas within that 45-minute radius during actual commute hours—not midnight when roads are empty. Look for first-ring suburbs adjacent to the city core, or transit-oriented developments near commuter rail stations where you can work during your commute. 

But here's the critical calculus: Don't just relocate the problem.

"If you're replacing your $2,400 exurban mortgage with a $3,300, higher-interest near-work equivalent with no tangible uptick in quality of life, then all you've really done is relocated the friction and called it a day," Croak says.

The math has to genuinely improve your situation—not just shift where the pain point lives.

Don’t forget factors beyond the spreadsheet

Some situations clearly point toward selling: if your commute is consuming a huge chunk of your income or tim, your health or relationships are suffering, you have little equity to work with, or childcare has become impossible to manage. Conversely, staying makes sense if you locked in a low mortgage rate with substantial equity, your office requirement is only a few days weekly, you can generate rental income, you're rooted in your community, or you're caring for aging parents nearby.

But some factors can't be reduced to spreadsheets. Children's school stability, your partner's career, community ties, and personal health all matter beyond the numbers. And while some workers may have leverage to negotiate RTO exceptions—particularly those with specialized skills or strong performance records—don't let wishful thinking about a possible exemption delay realistic planning. Have that conversation with your employer, but prepare for both outcomes.

Return-to-office mandates have disrupted thousands of homeowners' plans, but you have options. If you bought in 2020-2022, you likely have substantial equity—whether that means using it to make staying sustainable or relocating strategically closer to work. Run your actual numbers, weigh your priorities, and make a decision with confidence.