The impact of the COVID-19 pandemic on the demand for density: Evidence from the U.S. housing market
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...
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Veröffentlicht in: | Economics letters 2021-10, Vol.207, p.110010-110010, Article 110010 |
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Hauptverfasser: | , |
Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | 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.
•The COVID-19 pandemic reduced housing demand in dense neighborhoods.•The reduced demand for density is driven by less need of living near jobs.•The shift from density is also due to the declining value of access to amenities.•Housing demand shifted from expensive locations to cheaper locations.•Shift in housing demand occurred mainly within cities toward suburbs. |
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ISSN: | 0165-1765 1873-7374 0165-1765 |
DOI: | 10.1016/j.econlet.2021.110010 |