A New Spatial Hedonic Equilibrium in the Emerging Work-from-Home Economy?
Jan K. Brueckner
Matthew E. Kahn
Gary C. Lin
- American Economic Journal: Applied Economics (Forthcoming)
This paper studies the impacts of work-from-home (WFH) in the housing market from both
intercity and intracity perspectives. Our results confirm the theoretical prediction that WFH
puts downward pressure on housing prices and rents in high-productivity counties, a result
of workers starting to relocate to cheaper metro areas during the pandemic without forsaking
their desirable jobs. We also show that WFH tends to flatten intracity house-price gradients,
weakening the price premium associated with good job access.
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