Flattening the Curve: Pandemic-Induced Revaluation of Urban Real Estate

By Arpita Gupta, Vrinda Mittal, Jonas Peeters, Stijn Van Nieuwerburgh. Social Science Research Network, 2021

190 citations recorded by the source corpus.

We show that the COVID-19 pandemic brought house price and rent declines in city centers, and price and rent increases away from the center, thereby flattening the bid-rent curve in most U.S. metropolitan areas. Across MSAs, the flattening of the bid-rent curve is larger when working from home is more prevalent, housing markets are more regulated, and supply is less elastic. Housing markets predict that urban rent growth will exceed suburban rent growth for the foreseeable future.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/8e6877048f2cde21eac9700424c5e87354097785

Citations in the corpus

• The impact of the COVID-19 pandemic on the demand for density: Evidence from the U.S. housing market (2020, unknown): “documented migration and bid-rent curve patterns consistent with our findings (Ramani and Bloom, 2021; Althoff et al., 2020; Gupta et al., 2021).”
• The Donut Effect of Covid-19 on Cities (2021, unknown): “Gupta et al (2021) find a flattening of the bid-rent curve in the top 30 US metros.”