Hybrid working view from a home office looking out over suburban houses, symbolizing the rise of suburban centres and the shift away from city living.

The rise of the suburban centre? The impact of hybrid working on cities

NearU

11 Sep, 2025

When lockdown hit, it encouraged many of us to rediscover our inner rambler and explore the great outdoors in our local areas. Coupled with remote working and sky-high rent costs, the disadvantages of inner-city living became unavoidable. At the extreme, some people were forced to spend lockdowns in less than 10 square-metres of space, but for everyone, the deficiencies of space, greenery and social interaction were widespread concerns. The resulting dreams of long walks in the countryside led to predictions of mass exodus from city centres after restrictions eased… but is that what we are seeing and how will it affect the modern workplace? 
 

The pandemic accelerated a wider pattern of workers with increasingly digital jobs demanding greater geographic flexibility

 
Before we can consider the relationship between hybrid working and urban-to-rural migratory patterns, it is important to set out our terms. As ROBUST, an EU Research Centre underlines, there is no longer a strict dichotomy between urban and rural. There is a spectrum between urban, peri-urban and rural, including suburbs and commuter towns that are key to the developing story of hybrid working. The pandemic accelerated a wider pattern of workers with increasingly digital jobs demanding greater geographic flexibility. From mid-2019 to mid-2020, 101,000 people moved out of London, sustaining the capital’s three-year average. The question is, where were workers moving to?

While the data is not yet available in the UK, the US picture can offer a clue. According to USPS data, 82% of urban centres saw more people moving out than in, during the pandemic. However, the geographic winner was suburban centres, with 91% witnessing more inward than outward migration. Most individuals moved locally, either to near-by smaller, less expensive cities, or to suburbs of their current cities, reflecting pressure from high-cost rents in densely populated metropolises. Not everyone was able to move during the pandemic, with younger people, those without children or and people on higher than average salaries more likely to take the plunge. 
 

We spend an average £135,000 on commuting in our lifetime

 
Cost is a key part of the explanation for the move out to the suburbs or smaller cities. Take the dreaded commute for example. Not only was avoiding the crammed morning commute on the Tube a major lockdown win, it also brought home to commuters its significant expense. According to TotalJobs, we spend an average £135,000 on commuting in our lifetime, which rises to an eye-watering £197,377 for London commuters. It also costs us 39 days a year in travel time, which could be put to better use elsewhere. With pandemic-enforced remote working, there was a new feasibility of moving out to lower-rent areas, without increasing the time and money spent on travelling to work. 
 
The government’s new flexible train ticketing system, allowing 2 and 3 day-a-week commuters to save money on their season tickets highlights that this shift is here to stay. The tagline for the Williams-Shapps Plan for Rail, #TheFutureIsFlexible reflects the wider pattern that the pandemic has accelerated. Not only are individuals investing their time and money in urban-to-suburban shifts, but top employers are supporting them in doing so. As Hugh Milward, Microsoft’s Head of Corporate, External and Legal Affairs, put it, “I think that the case for flexible working has now been made.”

Every industry will need to find their own balance

 
A wider city-to-suburb and even city-to-rural shift would require all stakeholders to engage proactively to support the move, including the government, organisations and individuals. For employees wanting to improve their quality of life, or their finances, as well as employers looking to capture talent in a global market, making a convincing argument for hybrid working is critical. That argument has to offer organisations and governments a value-add proposition, beyond personal and financial benefits to employees. It has to affect their bottom-line. 
 
Given the potential advantages available to organisations, the only question left is how to adapt to employee demands for greater flexibility over their location, post-pandemic. As Susan Wachter, co-director of the Penn Institute for Urban Research at the University of Pennsylvania predicts that the outward movement to the suburbs will not only continue, but accelerate over time, organisations have to react now to develop effective hybrid working teams.
 
Some industries will be able to facilitate a greater geographical spread than others. No one is suggesting that construction workers can live in a different county. Yet, every industry will need to find their own balance, just as local and regional factors will play a part. The move from densely packed central HQs to working on peripheries will strain traditional methods of building company culture. Changing processes and infrastructure will require an initial investment. Leaders will need to push their organisations to embrace change, by demonstrating the benefits. For employees, the benefits of having ownership of how and where they work are evident, for example, women can avoid the dual career trap
 
There is no ‘Great Escape’ to the country. Whether workers are crammed in a shoebox in London or in a commuter town, like St Albans, it will not significantly impact their productivity or retention. The real test for organisations is whether they empower their employees to make the choices that are right for them - and reap the benefits of doing so.

The Suburban Centre in 2025: Where We Stand Now


Fast forward to 2025, and the suburban shift has not only persisted but matured into a defining force in the way we live and work. The expectations outlined in 2021 have evolved into measurable patterns that continue to shape economies, real estate markets, and community life.

Suburban Coworking Booms


Coworking spaces have become the backbone of hybrid working in suburban and commuter areas. U.S. suburban coworking inventory surged from 55.5 million to 87.6 million square feet between 2023 and early 2025. Cities like Los Angeles, Dallas, Chicago, and Atlanta nearly doubled their suburban coworking supply, while Phoenix recorded a 185% increase, with suburban sites now making up over 80% of its coworking stock.

The UK mirrors this pattern: Uxbridge (+88%), Slough (+42%), and Solihull (+73%) lead the way, showing strong demand outside London’s central core. This reflects a wider acceptance that proximity to home, rather than proximity to city HQs, drives workspace decisions.

The “Donut Effect” Holds Strong


The so-called “Donut Effect,”a term coined by Stanford researchers remains robust. Recent PNAS findings show that nearly 60% of households moving out of urban cores still choose nearby suburbs, reinforcing the long-term trend.” Data shows that three-fifths of households moving out of city centres still prefer nearby suburbs, creating thriving commuter belts. Far from hollowing out cities completely, this trend has rebalanced density and consumption, decentralizing where people live and spend.

Suburbs as Economic Hubs


Suburbs are no longer just residential zones. In the Philippines, coworking in suburban hubs like Angeles City grew by 30% in 2024, while rural flex spaces rose 20%. In the U.S. and Europe, suburban neighborhoods have transformed into mini economic ecosystems housing wellness centres, retail clusters, and hospitality venues that benefit directly from hybrid workers spending more locally.

Built Environments and Design Evolution


Suburban offices and coworking hubs have undergone an upgrade. They now feature quiet zones, collaborative lounges, wellness rooms, biophilic design, acoustic treatments, and shared cafés. Amenities once reserved for flashy city offices have become the suburban standard, elevating the quality of suburban workplaces.

New Commuting Habits


Hybrid schedules have altered commuter rhythms. A 2025 study by IWG and Arup, shows hybrid working improves productivity by 11% while cutting commuting costs, further validating suburban living. Workers often leave offices earlier—“4 p.m. is the new 5 p.m.”—to juggle childcare and family duties. Meanwhile, flexible train ticketing in the UK continues to support workers commuting just two to three days a week.

Return-to-Office Pressures


Not all trends lean suburban. By 2025, many employers are reasserting control, pulling back on hybrid flexibility. Yet studies suggest more office days don’t necessarily boost productivity, adding tension to these return-to-office mandates.

Employee Sentiment

Despite corporate pressures, workers remain firm advocates of flexibility. Surveys and online forums consistently show that most employees still average 2.3 work-from-home days per week. Many even walk away from roles that revoke hybrid policies, citing higher productivity and better well-being when working remotely. As The Guardian reports, hybrid work has failed to ‘level up’ the economy, but workers continue to value flexibility over rigid office routines.

Looking Ahead


The suburban centre is no longer just a temporary refuge from lockdown; it is a permanent feature of the modern work landscape. With coworking supply booming, suburbs reinventing themselves as commercial hubs, and hybrid work still preferred by employees, the future will likely be a tug-of-war between corporate return-to-office demands and individual desires for flexibility.

What’s clear is that hybrid working has transformed not just office life but the very geography of how and where we live. Suburbs are no longer the quiet peripheries they are becoming central to the global economy’s next chapter.

FAQs About Hybrid Work and Suburban Growth


1. What is the “Donut Effect”?
 The “Donut Effect” describes the population shift from dense urban centres to surrounding suburbs, leaving cities less populated in the core but busier in the peripheries.

2. Why are coworking spaces growing in suburbs?
 Hybrid work created demand for flexible spaces closer to home, reducing commuting costs and supporting work-life balance.

3. Are cities losing their importance because of hybrid work?
 Not entirely. Cities remain cultural and economic hubs, but their dominance has softened as suburban areas capture more spending and workplace activity.

4. How are employers reacting in 2025?
 Some embrace hybrid working fully, while others like Amazon and JPMorgan have reinstated mandatory in-office days, creating tension between employees and management.

5. What’s next for suburban growth?
 Expect suburban areas to evolve into fully fledged business and lifestyle hubs, supported by coworking infrastructure, retail, and housing developments.