Arjun Ramani, Nicholas Bloom, 28 January 2021

The pandemic has pushed against many of the central forces that create economic agglomeration in cities. This column presents evidence on how US real estate markets have responded to the pandemic and the rise of working from home. The authors find that real estate demand reallocates from high-density regions where many people work from home to low-density regions where fewer people work from home within metropolitan areas for both residential and commercial properties, but do not find much evidence of demand reallocating across metropolitan areas. These changes appear to be limited to highly populated ‘superstar’ cities.

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