NC's Most Popular Places for Working from Home: 2023 Update

How and where Americans work continue to evolve following the COVID-19 pandemic. The U.S. Census Bureau recently published data from the 2023 American Community Survey (ACS), showing North Carolina ranked 11^th among the states and District of Columbia in remote work – down from 13^th in 2022. Despite a modest, but steady, decline from 2021 peaks, the percentage of those working from home (WFH) in North Carolina and nationally still more than doubled 2019 (2.4 times as high for NC and the US) – see Fig. 1.

Figure 1

Metro Raleigh is number three for work-from-home… in the U.S.

Despite a small decline from 2022, Raleigh-Cary had the third-highest number of work-from-home workers among all metro areas nationally (behind Boulder and Austin) with 24.5% of workers primarily working from home in 2023. Most metros in NC and across the U.S. saw workers slowly return to work away from home for most of their work time last year. Raleigh just experienced a smaller change than some (declining from 26.1% in 2022). Charlotte-Concord-Gastonia metro area, where 21.5% of workers are based at home, ranked 6th nationally. Eastern North Carolina experienced some of the greatest annual WFH increases in NC, with Greenville, Jacksonville, and Wilmington increasing 3.0, 2.2, and 1.1 percentage points respectively from 2022.

Five North Carolina MSAs were among the top 50 WFH metro areas in the U.S. in 2023:

• #3    Raleigh-Cary                                    24.5%
• #6    Charlotte-Concord-Gastonia     21.5%
• #13  Durham-Chapel Hill                      19.5%
• #23  Wilmington                                       18.8%
• #47   Asheville                                           16.3%

Working from home is not popular among all NC metros. The Greensboro-High Point, Winston-Salem, and Hickory-Lenoir-Morganton MSAs (3^rd, 4^th, and 7^th-largest in terms of labor force in NC) all saw well below state and national averages in percentage of WFH (11.2%, 11.5%, and 8.4% respectively). This is likely due to the industry mix existing in those regions. Each has a relatively high concentration of employment in manufacturing, an industry with limited remote work opportunities. This is contrary to employment in the Charlotte and Triangle metros, where above-average shares of employment are in remote-friendly Professional and Technical Services, Information, and Financial Services sectors.

Urban areas lead the way

At the county level, North Carolina’s two largest counties, Mecklenburg and Wake, were among the top counties in the nation in 2023 for WFH, ranking #4 and #10 respectively. The Census ACS only reported 1-year commuting data for 28 of NC’s 100 counties, so most of the state, particularly rural counties, are not included in this analysis (Fig. 2). However, eight counties in the state ranked the top 100 among the 712 counties reported nationally (Fig. 3) – all from either the Charlotte, Triangle, Wilmington, or Asheville regions. Conversely, 10 North Carolina counties ranked among the bottom half in the U.S. (Fig. 4).

Figure 2

Figure 3

Top NC counties for Work-from-Home

1. Mecklenburg County       28.9%
2. Wake County                      27.3%
3. Orange County                  22.0%
4. New Hanover County      21.0%
5. Durham County                 19.6%
6. Union County                     18.7%
7. Buncombe County           18.7%
8. Brunswick County            17.7%

Implications and Future Trends

The 2023 data paints a nuanced picture of work-from-home trends in North Carolina. While the state has experienced a slight decline from its 2021 peak of 18.8%, the current 16.1% of North Carolinians primarily working from home still ranks 11th nationally and far exceeds pre-pandemic levels. This resilience is particularly evident in metro areas like Raleigh-Cary, which is third in the nation with 24.5% of workers primarily stationed at home.

It's important to note that the Census data only captures where workers spend most of their work hours. Thus, the modest decline we're seeing could represent either a full return to office for some or a shift towards hybrid models for others. The concentration of high work-from-home rates in major metro areas and their surrounding counties suggests a preference for proximity to urban centers, potentially indicating the prevalence of hybrid work arrangements.

However, proximity is only one factor. The work in those regions must be conducive to work-office environments – e.g. high concentrations of professional services industries. In regions with more production-oriented work (Manufacturing, Construction, Agriculture), like the Triad and Hickory metro areas, remote work is far less prevalent.

Despite some large employers calling for a return to office and a gradual reduction in work-from-home percentages both nationally and statewide, remote work remains a significant factor in North Carolina's labor landscape. The varying rates across the state, from 28.9% in Mecklenburg County to 4.6% in Robeson County, highlight the stark regional differences in the needs and actions of workers and businesses.

As we look to the future, monitoring these trends will be crucial for North Carolina's policymakers, urban planners, and business leaders. The evolving work patterns will likely continue to shape everything from real estate markets and urban development to talent attraction and retention strategies. Understanding and adapting to these changes will be key to ensuring North Carolina's continued economic competitiveness and high quality of life for its residents.

Figure 4

North Carolina’s Rate of Working from Home