4.4 Article

The impact of the COVID-19 pandemic on the demand for density: Evidence from the US housing market

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ECONOMICS LETTERS
卷 207, 期 -, 页码 -

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ELSEVIER SCIENCE SA
DOI: 10.1016/j.econlet.2021.110010

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COVID-19; Pandemic; Density; Housing; Telework; Amenity

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The COVID-19 pandemic has caused a shift in housing demand away from high population density neighborhoods, driven by the increased need for telework-compatible jobs and decreased value of access to consumption amenities. Areas with high pre-COVID-19 home values also experienced a greater drop in housing demand, with a significant shift observed away from large cities.
We study the impact of the COVID-19 pandemic on the location demand for housing. We find that the pandemic has led to a shift in housing demand away from neighborhoods with high population density. The reduced demand for density is driven partially by the diminished need for living close to telework-compatible jobs and the declining value of access to consumption amenities. Neighborhoods with high pre-COVID-19 home values also see a greater drop in housing demand. Moreover, we find a significant shift in housing demand away from large cities, though the magnitude is smaller. (C) 2021 Elsevier B.V. All rights reserved.

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