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

By Sitian Liu, Yichen Su. Economics Letters, 2020

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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.

Subfields: Economics and Econometrics, Marketing

View Paper: https://www.semanticscholar.org/paper/b095d5a8a3646874672556964a170e5f163f6172