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

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  • Liu, Sitian
  • Su, Yichen

Abstract

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.

Suggested Citation

  • Liu, Sitian & Su, Yichen, 2021. "The impact of the COVID-19 pandemic on the demand for density: Evidence from the U.S. housing market," Economics Letters, Elsevier, vol. 207(C).
    • Handle: RePEc:eee:ecolet:v:207:y:2021:i:c:s0165176521002871
    DOI: 10.1016/j.econlet.2021.110010
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    More about this item

    Keywords

    COVID-19; Pandemic; Density; Housing; Telework; Amenity;
    All these keywords.

    JEL classification:

    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • I1 - Health, Education, and Welfare - - Health

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