When home is where the work is, urban design should follow

The pandemic has recalibrated the rhythm of our cities and redefined where we go to work, as well as what and where we call home. In Auckland, like in many parts of the world, the shift to work-from-home arrangements has catalysed a transformation in both residential and commercial property markets, reshaping Auckland’s urban landscape, and reflecting trends seen around the world.

Proximity to central business districts has been a key factor in urban studies, directly influencing rental prices – with properties closer to the city’s heart commanding higher rates. Yet, our analysis across more than 240 Auckland suburbs shows that rental prices between the CBD and outlying suburbs dramatically narrowed in the post-pandemic cityscape.

We used location-based service data, sourced from mobile devices between 2019 and 2021, which reveals that a significant portion of Auckland’s workforce, previously concentrated in the CBD, has migrated to suburban and fringe areas. This shift away from city centres is about seeking what is perceived as a better quality of life – larger homes, quieter environments, and greener surroundings. This migration reflects a desire to enjoy the benefits of suburban living with the convenience of remaining connected to some urban amenities.

Our research suggests these changes are not fleeting but signify a potential permanent transformation in living and working patterns. It also reveals a diversification of workplace locations, with a growing number of people moving away from the more industrial centres, such as Papatoetoe, to other areas as a place of work. This trend underscores a significant shift in how and where we choose to work.

Reimagining where we work and play

The pandemic-induced work-from-home shift is altering the fabric of our built environments. On the one hand, this trend has inflated rental markets in suburban areas, challenging affordability and accessibility for lower-income families and altering the demographics of these communities. On the other hand, diminished demand for CBD office spaces is sparking a revaluation of what we can and should expect of our urban spaces and what they are used for. It is offering us a chance to reimagine and repurpose these areas into residential or community hubs.

We used machine learning algorithms to analyse the frequency and timestamps of mobile device activities, defining a ‘home-like’ area for individuals and data relevant to workdays and working hours to identify workplace locations. Our analysis of the Auckland region encompassed an estimated 1.7 million residents from 2019 to 2021, comparing pre- and post-pandemic periods.

The data reveals more than 50 percent of people adjusted where they worked, moving from the CBD to the city fringe, while almost a quarter of people relocated from the industrial hub of Papatoetoe to work in other areas. To understand how work locations have spread across Auckland, we used a measure that tracks the dispersion of workplaces. Think of it as a way to quantify how spread out or clustered work locations are across the city. The change was statistically significant, meaning it is unlikely to have occurred by chance, representing a lasting trend rather than a random event.

Rethinking urban and suburban spaces

This is (or should be) prompting a deeper conversation about the future of urban planning, underscoring the importance of responsive policies that align with evolving work and lifestyle trends. Auckland’s shift toward work-from-home arrangements reveals how suburban areas can offer residential comfort and an expanding range of work and recreational opportunities. This shift suggests that city planners could revitalise suburban spaces, transforming them into more vibrant, multifunctional hubs where people work, and socialise closer to home.

These changes offer the city centre an opportunity for adaptive reuse, such as converting surplus office spaces into residential or mixed-use developments, helping the core of the city remain vibrant and relevant. Existing offices might consider transitioning to co-working spaces, supporting the flexible needs of remote and hybrid workers who seek occasional access to professional environments without a full-time commute.

Embracing these shifts can create a more balanced urban landscape to support flexible lifestyles while fostering sustainable growth in both suburban and central areas. This moment calls on planners, policymakers, and business leaders to design adaptable cities, making urban spaces more inclusive and better equipped for this new era of living and working.